The Importance of Measuring HR Performance

HR performance is an aspect to be measured in ensuring the success of a company’s overall operations. Certain elements have to be considered when measuring this.

Measuring the productivity and performance of each and every department is necessary. There have been procedures developed and recommended in measuring these aspects when it comes to the effectiveness of a company’s management team. Such procedures have also been developed to measure the same when it comes to a company’s workforce.

But have you heard of such a system being used to measure HR performance? Yes, there is indeed such a need to measure this. Thus, there have also been procedures developed for this purpose.

First of all, it is important to recognize the fact that the HR department is very vital in the existence and overall success of a company. This is because this is the department that handles the hiring of the company’s premier assets: its workforce. Thus, it would make sense to measure the performance of this department in this aspect.

And this is just one of the many responsibilities the HR department carries out, you know. Thus, it would make further sense to have some sort of system set up to evaluate HR performance as a whole.

Now, there are certain elements, or what is known as indicators, that should be used in evaluating HR performance. The first of these would be, as expected, workforce productivity. It is important to take note here that productivity for one company can be completely different from that of another company. This is simply because companies have different goals, objectives, and purposes.

Still, there would be established measures that are common amongst companies. If workforce productivity is going strong, then it’s safe to say that HR performance is productive in this aspect.

Employee engagement is another aspect to keep in mind here. This pertains to the work relations between the employees themselves and the management. If this aspect scores high, then this would mean that the employees value their jobs. Just like workforce productivity, HR performance would score high if employees are satisfied with the jobs that they keep.

One way to know this is to hold surveys, so that the employees can express whatever thoughts they have about their jobs. You best look for answers wherein employees would say that they wake up and find themselves looking forward to another day at work.

Recruitment is also an aspect as well. If you think about it, recruitment is the most important job responsibility any HR department has. To check if HR performance is strong in this aspect, then the average performance appraisal scores of the employees should be monitored. If a company is consistently promoting its employees to higher positions and better opportunities, then HR performance is at an all-time high.

The last concept is employee retention. Turnover is something that no company wants to experience. However, this is quite inevitable in any company because there will always be better opportunities coming by for any employee in the workforce. There are also times when the company itself would decide against retaining some employees, especially the unproductive ones.

This is something any HR department wants to avoid. Thus, it is important for the HR department to hire only the productive ones as much as possible. If the retention rate in a company is high, then HR performance is also positive in this aspect.

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