HR measurment in automotive industry

It is well known that even the best company will not survive if it has on professional personnel or existing work force is used in an inappropriate way.  This to say that human resource management is important in all business areas.  Of course, we’re talking about midsize and large companies with a great number of employees.  Even many million investment programs will fail unless the company has qualified and professional personnel.

Efficient human resource management is a must for all industrial enterprises, especially large ones.  It is unacceptable to waste money spent on recruitment and training of personnel because of tough competition in all industrial markets.  That’s why human resource departments and industrial enterprises aimed at reduction of costs relating to human resource management.  At the same time one needs to keep balance since cost saving may have negative consequences.

In automotive industry efficiency of human resource management results in better production output, improved customer satisfaction and higher employee performance.  All these are key success factors in this industry.  It is important to understand that most of work is done automatically (production, assembling etc).  At the same time, human resources play a crucial role in automotive industry.

So, what key performance indicators may be used in evaluation of HR performance at automobile enterprise?

  1. Absence rate.  Very often enterprises work round the clock or have a very intense production cycle.  Absence of several employees may result in downtime of the entire line.  Even if those who did come to work cover duties of absentees this will surely affect their performance in a negative way.  That’s why absence rate is an important indicator at major industrial companies.  Even a short downtime may result in enormous losses for the plant or factory.  Absence rate is calculated as ratio of present and absent employees.  It would be a reasonable to assess these indicators 1-2 times a month.
  2. High performing employees rate.  Skills and knowledge is very important during the production process.  Employees with high performance benefit the company with better production output.  They are not spending time for secondary tasks and they know their job well.  Naturally, the higher the rate the better the performance of the entire tech and production personnel.  High performing employees are evaluated by midlevel managers, heads of workshops etc. High performance means production of a quality product at the minimal amount of time.  A quality product contributes to positive image of a company in the eyes of customers.
  3. Low performing employees rate. This indicator is the opposite to the high performing employees rate.  Of the lower the indicator the better for the company.  Of course, it is impossible to keep it at the zero level, but HR Dept must do everything possible to keep low.

It goes without saying that employee satisfaction is playing great role in production processes.  It is not an easy job and compensation as well as working conditions must be suitable for employees.  Automotive industry keeps constantly progress, so personnel should undergo regular training to improve professional level in order to create new products.