Metrics helps measure Human Resource (HR) performance

Any business involve management and control of resources. Human resources are the most valuable part of your business, learn how to measure and control the performance of HR department.

The business success is about taking right people to the right place on right time. So what is the problem" Actually, if you need to manage not one, but five employees or better five groups of employees, then you face the problem of measuring and control. It's hard to tell whether one group is performing better or not, it becoming hard to compare one employees success against other one, it's hard to see the unique features of people. So what the solution is" The key metrics and key indicators, which will tell you how to manage your stuff right.

There are two approaches I suggest to take into account when thinking about human resources (HR) at your company.

  1. First, you can think in terms of process;
  2. Second you can think it terms of how do employees affect the whole business.

The processes of working with employees include: hire, education, management, retire. All the stages must be processes carefully, as they could fully change your business.

Download Whitepaper: Balanced Scorecard Design ToolkitSo, that's why it's really important to measure and control all processes involved into employees relationship. People who you work with, should understand what your goals, especially sale goals, are and how they will help to achieve these goals. This is the key idea of manage and control in employees management processes.

Another approach is focusing on how someone's job affect the company. It's obvious that even if someone works in a Sales then he or she will affect not only the financial part of the business by generating sales, but also all other parts.

So how to measure and control HR department at your company. The answer is very simple - you should develop some key indicators that will represent company business and then pay attention to what is working good and what should be changed. There are many names for this system, for instance KPI (Key Performance Indicators) or Balanced Scorecard. The result is having the clear view of what is going to happen in company and how it will steam-line your business.

What should be the first step" Actually, I think you have already had some important information for scorecard. For instance, you have document called "mission", this is a general definition of your principles, you can some business goals, you have business processes described and formalized. What you need now is to gather all this important information into a easy to manage system, which will take in account the importance of each metrics. This system (Balanced Scorecard or KPI) will help to manage and control the performance of your HR department.