How to measure HR performance in corporates?

As we all know that it’s not easy to measure HR or to get exact quantitative data. For an unbiased measurement, you can prepare a HR metric scorecard and then give marks to different indicators accordingly or you can buy ready made HR scorecards. Usual HR scorecard contains a general metric framework to estimate various HR KPI’s (Key Performance indicators ). It includes the above discussed indicators “Recruitment”, ” Retention”, “Employee turnover, and “training & development”. Each of these four main groups further contain various indications and they are given appropriate weightage. This will help to measure the HR performance to some extent.

Friends, I believe employee retention is the major indicator for measuring HR score. We should take steps so that efficient workers are retained in the company for a longer time, and the “lazy” ones are replaced by a new generation workforce. Take surveys on whether the workers are satisfied with their jobs. So looking and evaluating these and other HR KPI’s, the management can take steps to improve their HR score. It helps them to decide what needs to be improved and what needs to be taken off.

Hi Gargi ,

Speaking of KPI in HR. www.smartKPIs.com may be a good resource for you. It contains a user friendly library of well-documented performance measures.  At the moment it lists over 4500 KPI examples, grouped in 73 functional areas, as well as 83 industries and sub-categories.

KPI examples for the HR are available on this page http://www.smartkpis.com/kpi/functional-areas/human-resources/   They include but not limited to:

% Performance appraisal participation rate

% Self review rate

% External hire rate

In addition to examples of performance measures, www.smartKPIs.com also contains a catalogue of performance reports that illustrate the use of KPIs in practice.

Examples of such reports for HR are available on: http://www.smartkpis.com/kpi_examples_in_practice/functional-areas/human-resources/

The website is updated daily with new content, so check it from time to time for additional content.

Please note that while examples of performance measures are useful to inform decisions, each performance measure needs to be selected and customized based on the objectives and priorities of each organisation.

Best regards,

Anita Liang

Research Analyst

www.smartKPIs.com

talent acqusition and retention as well as employee morale and productivity are related to organisation values and culture making it a preferred or brand employer - hence hr's role in promoting organisation values and culture and retaining and enhancing the index thereof needs to be critically pathologically measured for a linked diagnosis of hr effectiveness and relevant actions and this needs to be done from a futuristic strategic agreed upon values and cultural framework adapting the organisation to change rather than a static historical framework. hope this makes some sense here!

regards/kshantaram

Few effective ways are: Focus on quality of recruitment, retention, employee relations, training and development impact ratio and employment brand strength. This can be precisely done by HR metrics.

For example, one valid measurement could be the number of days that positions are vacant. Another measurement could be employee turnover. HR should track the reasons employees voluntarily leave the company to determine if other companies compensate better or provide better leadership or training. These are areas HR can and should have an effect on. HR should also track involuntary turnover — employees who are fired — because it reflects on the recruiting process.