???Though all company divisions play a great role in its development, the human resource department is still the one that is said to make a significant contribution into this challenging process. This is because all employees who work here bear responsibility for what they are doing. That is why it is of key importance both to keep track of their productivity and to make sure they are satisfied with their working environment. This seems to be quite easy at first sight. The truth is, however, that if you are the owner of a large company, you will hardly be able to cope with this task properly. Therefore, the application of HR metrics will be quite effective in this respect.
Human resources metrics prove to be a superb tool when it comes to HR evaluation. Nonetheless, large businesses frequently face problems when working them out. As a rule, there are two basic mistakes they make when implementing HR metrics, namely the development of vague metrics and creation of a few metrics, which seriously complicates their maintenance and application. Let us have a closer look at both faults.
The first mistake is the most typical and implies that people fail to cooperate effectively with the only purpose to achieve common goals. In this respect, the usage of human resources metrics can really pay off. As soon as the top managers of the company develop them, they should submit them to the chief financial officer, who will further decide whether they can be effectively used for the measurement of the company’s performance. This person also evaluates their realizability and strategic mission. If everything is all right, then the metrics can be successfully implemented.
Now, let us proceed to the second mistake, namely the amount of HR metrics. It is frequently assumed that the less their number is, the more effective they prove to be. Basically, a large company can use up to twelve metrics. That is the optimum alternative. Otherwise, you will find it quite problematic to monitor all of them. Apart from this, it is highly recommended to organize company HR metrics into several levels. Thus, the first tier should deal with the employees’ productivity. The most suitable metrics, which can be applied here include the measurement of the apparent improvement (this concerns the efficiency of your personnel), expenses per one generated income, the amount of money spent on each worker (if there are any positive changes) and the financial value of the amplified staff productivity.
The next tier deals with the measurement of the personnel involvement. The HR metrics, applied here, include the approximate percentage of staff members, who are enthusiastic about what they are doing and that of those who think that the company’s management demonstrates anticipated behaviors when evaluating their work.
Finally, there is always the necessity to measure the advantages and the compensation level. The best human resources metrics used here involve the percentage of personnel members who demonstrate satisfaction with the reward system and that of those who work well, but get the above average wages.