The human resource scorecard
Aug 08, 2009
AT times you hear people talking about a balance scorecard and wonder what they are talking about. What is this balance scorecard? A human resource (HR) scorecard is the same scorecard system that accounting, inventory and logistics departments us
HR INSIGHT
With Paula Kyabaggu Mukama
AT times you hear people talking about a balance scorecard and wonder what they are talking about. What is this balance scorecard? A human resource (HR) scorecard is the same scorecard system that accounting, inventory and logistics departments use. Only this time, it is centered more on measuring the activities of the HR department.
Many times HR managers wonder why after trying out nearly every other trick in the book, the quality of candidates do not meet the requirements specified by the management.
Also issues of lack of sufficient skills and relative inexperience of candidates causes hassles, which an organisation would better like to avoid.
Though the issue may appear to be complex at the outset, some research and foresight can help us analyse the root cause of the problem, which is essentially the disconnect of the hiring process from the goals of the organisation.
Typically, we hire a person for a profile, while leaving out what the person is supposed to achieve in that position. This is where a balance scorecard comes into the picture as it allows us to streamline the hiring process in a manner that it is aligned with the broader goals of the organisation.
The application of the HR scorecard means that there is an optimum method for evaluating and defining the value and efforts.
With the aid of this scorecard system, the management is also able to organise objectives effectively and clearly, which is necessary in maintaining an active and stable company.
The HR-specific scorecard system, cuts the hassles in quantifying the worth of the company and its workforce.
Whether in a small or large company, managing employees is a no ordinary job. The human resources department is one of the many sections that an organisation should come up with.
It is the focal point for establishing duties and responsibilities necessary for evaluating work performance.
HR personnel handle transactions on a daily basis. As the company grows, it will need a more robust system to improve its measuring activities. This includes the use of the HR scorecard.
One can create metrics to track specific requirements that an organisation has from the recruitment process, which can vary from evaluating the hiring modes, to performance of the recruitment team.
Setting up the scorecard system, however, takes time and many considerations. This starts with the identification of potential yardsticks or metrics. Going through a series of checks and reviews is necessary to come up with effective metrics. It will help if the HR department understands the real purpose of installing an HR scorecard system.
HR managers should carefully research on the status of the workforce. They should see if the current volume of employees is enough to stabilise the growth of the firm. Whether the results are positive or negative, it is only then that the HR department can figure out a clear objective in setting the scorecard. A good example of a scorecard objective is to boost productivity through training.
The HR team should gather the important details necessary for the scorecard system to work such as the productivity of the workers, the skill growth of the workers and the health status of the workers plus the compensation attractiveness of the workers. These details are usually the actual activities that employees face everyday.
Briefly, scorecard patterns should be pertaining to contributions, functions and value points of each employee.
Once such information is gathered, there is need to integrate all the details into meaningful data so as to come up with a broader picture, which is technically known as relationship building.
All in all, HR managers should identify the relevance of each employee. As the scorecard evaluates these details and creates relationship, it also puts the metrics to the test.
Along the way, the HR may find a certain metric irrelevant, but most of the time, patterns like cost-per-hire, turnover cost, turnover rate and time to fill, provide useful values. A tool like a balance scorecard can go a long way in clearing the picture and introducing clarity and purpose in the HR team.
The scorecard is beneficial only when there are clear objectives, well-defined patterns and relevance.
With Paula Kyabaggu Mukama
AT times you hear people talking about a balance scorecard and wonder what they are talking about. What is this balance scorecard? A human resource (HR) scorecard is the same scorecard system that accounting, inventory and logistics departments use. Only this time, it is centered more on measuring the activities of the HR department.
Many times HR managers wonder why after trying out nearly every other trick in the book, the quality of candidates do not meet the requirements specified by the management.
Also issues of lack of sufficient skills and relative inexperience of candidates causes hassles, which an organisation would better like to avoid.
Though the issue may appear to be complex at the outset, some research and foresight can help us analyse the root cause of the problem, which is essentially the disconnect of the hiring process from the goals of the organisation.
Typically, we hire a person for a profile, while leaving out what the person is supposed to achieve in that position. This is where a balance scorecard comes into the picture as it allows us to streamline the hiring process in a manner that it is aligned with the broader goals of the organisation.
The application of the HR scorecard means that there is an optimum method for evaluating and defining the value and efforts.
With the aid of this scorecard system, the management is also able to organise objectives effectively and clearly, which is necessary in maintaining an active and stable company.
The HR-specific scorecard system, cuts the hassles in quantifying the worth of the company and its workforce.
Whether in a small or large company, managing employees is a no ordinary job. The human resources department is one of the many sections that an organisation should come up with.
It is the focal point for establishing duties and responsibilities necessary for evaluating work performance.
HR personnel handle transactions on a daily basis. As the company grows, it will need a more robust system to improve its measuring activities. This includes the use of the HR scorecard.
One can create metrics to track specific requirements that an organisation has from the recruitment process, which can vary from evaluating the hiring modes, to performance of the recruitment team.
Setting up the scorecard system, however, takes time and many considerations. This starts with the identification of potential yardsticks or metrics. Going through a series of checks and reviews is necessary to come up with effective metrics. It will help if the HR department understands the real purpose of installing an HR scorecard system.
HR managers should carefully research on the status of the workforce. They should see if the current volume of employees is enough to stabilise the growth of the firm. Whether the results are positive or negative, it is only then that the HR department can figure out a clear objective in setting the scorecard. A good example of a scorecard objective is to boost productivity through training.
The HR team should gather the important details necessary for the scorecard system to work such as the productivity of the workers, the skill growth of the workers and the health status of the workers plus the compensation attractiveness of the workers. These details are usually the actual activities that employees face everyday.
Briefly, scorecard patterns should be pertaining to contributions, functions and value points of each employee.
Once such information is gathered, there is need to integrate all the details into meaningful data so as to come up with a broader picture, which is technically known as relationship building.
All in all, HR managers should identify the relevance of each employee. As the scorecard evaluates these details and creates relationship, it also puts the metrics to the test.
Along the way, the HR may find a certain metric irrelevant, but most of the time, patterns like cost-per-hire, turnover cost, turnover rate and time to fill, provide useful values. A tool like a balance scorecard can go a long way in clearing the picture and introducing clarity and purpose in the HR team.
The scorecard is beneficial only when there are clear objectives, well-defined patterns and relevance.