HR KPI for Transportation

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Management of personnel is important in all industries. Havign qualified and progfessional personnel is a precondition for success. Thus, development of HR BSC and implementation of this system in transportation and logistics companies may benefit every company. Check additional information about hr kpi for transportation.

With the development of technologies and the Internet it has became easier to run an international business. Indeed, it does not matter if the two or more companies are located in various parts of the world. What is matter is their intention to do business together. The problem of communication is solved by the Internet while transportation problems are solved by shipment and logistics companies. In fact, running a logistics company is rather difficult, especially when it concerns international shipment. Sure, it is possible to ship products and cargos ASAP. However, would such shipment be cheap? In some cases, shipment costs exceed even the cost of cargo or products themselves. In order to be successfully running logistics business it is vitally important to employ professional personnel. In this article we will focus on human resource management in logistics and transportation services and efficiency evaluation with Balanced Scorecard.

Traditional Balanced Scorecard consists of 4 categories which stay pretty much the same in transportation KPI. However, when it comes to evaluation of HR performance in a logistics company these categories may slightly change, although their nature will remain unchanged. The categories are: financial, customer, internal processes and learning and growth. Each category and each key performance indicator in these categories will demonstrate efficiency of HR personnel in various fields and perspectives. Let's name a few indicators that are widely used in HR logistics Balanced Scorecard.

Cost per hire is quite a popular indicator in various HR scorecards, logistics and transportation BSC in particular. The work of a logistics manager is not easy. He or she requires certain skills, knowledge and experience to be effectively handling cargos. Thus, a logistics company should spend certain amount of money to hire a professional employee. However, some companies choose the other way. They hire inexperienced personnel and then invest money in their education and coaching. At the same time in such a case another indicator gains importance. New hire retention rate will demonstrate how many employees actually decided to work in the company for more than a year. A logistics company will suffer certain losses if it educates one employee, pays for training courses and seminars for logistics managers, and then such a logistics managers will simply leave the company.

Employee discipline matters much in transportation service. No one will ever wait for a logistics manager who came late to work. Most international shipments use various means of transportations. Being late for truck delivery automatically means lateness for airfreight, for example. Thus, punctuality is a must. It can be monitored with measurement of employee lateness rate.

Traditionally, BSC experts recommend measuring such KPIs as organization climate and employee satisfaction. It turns out that satisfied employees have the most satisfied customers who, as known, turn into regular customers for the company, and thus become regular source of income.

Effective use and management of personnel is one of the critical success factors in many businesses. Employees should feel that they are valued in order to show their top performance and benefit the company.

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