Are HR evaluation metrics as crucial for your business as they are assumed to be? Well, it depends upon how much you know about them and whether you establish them correctly or not. Nowadays, HR Balanced Scorecard is much spoken about and there is nothing strange or unusual about that, because this tool is reported to be one of the most advanced methods of improving the productivity and effectiveness of the workforce management procedure. It also helps utilize the company’s human resources in the most reasonable way.
People who do not know much about human resources BSC, should realize that it is nothing more than just a method of personnel performance evaluation, the final objective of which is to improve the workforce management. It basically focuses on several aspects that are associated with the functioning of the HR department. These aspects include the customers, the financials, the company’s inner processes as well as learning and professional growth.
The introduction of the Balanced Scorecard system has made it possible to analyze the most significant assets of the company in order to define what aspects should be improved and what changes should be implemented with the only purpose – to enhance the performance of the organization. Though it may initially seem that this task is quite simple, it is definitely a wrong assumption. That is why you are highly recommended to learn more about HR BSC.
Typically, there are 4 perspectives, without which the whole process of HR measurement will be senseless. These perspectives comprise costs, financial investments, outcomes as well as a set of other meaningful strategic aspects. Let us analyze each perspective more accurately.
To start with, you will not go without defining human resources costs, which involve money you have managed to acquire from the HR department. To analyze this perspective, you will have to use such metrics as remuneration and acquisition costs. In the next perspective (which is human resources investments), you will have to take into account professionalism and skillfulness of your personnel, since your employees are your main asset, which will help you withstand tough competition that exists in your particular business. Human resources outcomes, in their turn, will comprise such metrics as the workforce turnover rate, revenues and productivity enhancements. Strategic aspects included into the final perspective will incorporate such indicators as customer satisfaction, strategic accomplishments, market share as well as the quality of services and products offered.
Having identified the most valuable HR metrics, you should arrange and analyze them within the Balanced Scorecard system. This will give you an idea of how advanced the performance of your HR department currently is.