Performance measurement tools and metrics are probably the most widely discussed issues in the human resource industry these days. There is no lack of information associated with this topic, since it is extensively covered on the web. At the same time, there is a need to make some important points clear if you are concerned with the improvement of your business performance.
It does not matter a lot what business you run, you will face the necessity to measure the effectiveness of the HR department sooner or later. This is because the process of recruitment is one of the most responsible procedures for any organization, since the productivity, knowledgeability and training of employees is closely connected with the overall performance and success of a company.
As far as the human resource department deals with personnel and its management, HR specialists have to look for the best and the most experienced employees in each area. The process does not stop here, because even the most professional worker needs some training and time to adapt to the new position. The Balanced Scorecard system, which uses metrics or key performance indicators, can help evaluate workers’ skills and their potential contribution to the performance of a company. This valuable system combines strategic aims of a company with specific actions and measures that have to be undertaken for their effective implementation.
Key performance indicators should always agree with the strategic planning of your organization. This is where you should consider such aspects as the main accountability areas of your business, performance goals and standards, strategic aims that have to be met etc. This helps choose the best and the most suitable KPIs. For example, if you plan to measure the rate of customer satisfaction and care, you will have to set the corresponding objective, select a target and choose the most reasonable key performance indicators to measure this issue. Thus, the objective here will imply the improvement of customer satisfaction and the target will be to achieve not less than the 80% rate with the clients during the upcoming quarter, for instance. As a result, the best KPI, which will help you meet the pre-set goal, will be the review of the annual rate of customer satisfaction and its comparison to the current state of affairs in this area. The human resource department is bound to ensure that exact information is gathered, analyzed and measured properly. Well, this example may seem quite simple, but it can give you an idea of how the measurement process should be done.