HR KPI

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > Strategic Planning

Human resource department is an inseperable part of any company. Proper evaluation of personnel management will help business owners optimize current and future performance as well as reach strategic goals. Read this article learn about using BSC for such purposes. Check additional information about hr KPI.

The recent economic crisis has proved one thing that although was obvious to many business owners and top managers. Company personnel is the most valuable asset that any business may have. It is possible to lose money, acquire huge debts, have problems with real estate but as long as the company has loyal, dedicated and professional personnel all these problems can be solved. No one claims it is going to be easy. In this globalized world business problems get increasingly complex. However, if company employees are interested in recovering after crisis, chances are that the company will restore its former positions in the market and regain competitive advantage. In order to have loyal and professional personnel it is necessary to hire and educate people. Companies need years to form professional teams of employees who are capable of solving any tasks. This is what human resource management is all about. This article will focus on evaluation of human resource management performance as well as use of specialized software and systems to measure human resource department.

Currently, Balanced Scorecard is known as the most effective and popular system to evaluate human resource performance and align HR strategies with company strategic goals, values and mission. Without any doubt, Balanced Scorecard perfectly needs requirements of HR evaluation. There is much literature, researches and studies on this topic, including those performed by creators of Balanced Scorecard Norton and Kaplan. The traditional four categories of Balanced Scorecard also suit purposes of HR evaluation. Financial, customer, internal business processes and learning and growth contain key performance indicators that will offer information on progress of HR Dept in implementation of most important strategic goals. Moreover, Balanced Scorecard will demonstrate cause and effect ties in the strategy maps. This will help HR managers better understand how improvement of their performance can benefit the company and help it advance in strategic goals implementation.

As known, human resource department does not produce anything. It sells no services as well. HR department uses company money to hire, educate and retain personnel. This seems like a major problem especially in big companies. Thus, introduction of Balanced Scorecard of HR Dept will help understand current problems, cut costs and create favorable working conditions for employees. Implementation of Balanced Scorecard to evaluate human resource management can also help find mutually profitable compensation plans, reward systems and approaches to employee-employer relations.

For example, evaluation of cost per hire will certainly give top managers valuable information on how much money is spent to hire one employee. Sometimes it becomes more profitable to hire an inexperienced employee and then invest some money in his/her education. Evaluation of education costs per employee will help make a relevant decision. Employee satisfaction with working conditions and compensation plans is also an important factor that influences both individual and group performance. It is impossible to succeed in the company personnel is reluctant to show top performance. Thus, introduction of Balanced Scorecard and evaluation of human resource management automatically implies involvement of ordinary personnel in this system.

If you are interested in hr KPI, check this link to find out more about hr KPI. Also, you can check other articles in Strategic Planning category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.