How to Make Human Resource Scorecard Advantageous

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 a business organization should come up. It is the focal point for establishing duties and responsibilities necessary for evaluating work performance. HR personnel handle transactions on a daily basis. And as the company grows, the company will need a more robust system to better improve its measuring activities. This includes the use of human resource scorecard.

An 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. The application of an 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 organize objectives effectively and clearly, which is necessary in maintaining an active and stable company. In short, the HR-specific scorecard system cuts the hassles in quantifying the worth of the company and its workforce.

Setting up the scorecard system, however, takes time and many considerations. It actually starts in the identification of potential yardsticks or metrics. Going through a series of checkups and reviews is necessary as well 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 sufficient to stabilize the growth of the organization. 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 very good example of a scorecard objective is to increase productivity through trainings.

After coming up with a clear, measurable, intelligent, practical, and time-conscious objective, the HR team is now ready to gather the important details necessary for fueling the scorecard system. The fuel refers to the patterns: the productivity of the workers, the skill growth of the workers, the health status of the workers, as well the compensation attractiveness of the workers. The patterns are the actual activities that employees face everyday inside the company. Briefly, scorecard patterns should be pertaining to contributions, functions, and value points of each employee.

The next crucial step is to integrate all the patterns into meaningful data, kind of like coming up with a broader picture out of assembling jigsaw puzzles. Technically, this process of integrating the values or data and objectives is what experts call relationship building. Unless there are other ways to know whether ten computer programmers are enough in the IT department, HR managers should identify the relevance of each employee.

As the scorecard evaluates patterns 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. Remember that the real advantage of the human resource scorecard only comes when there is a clear objective, well-defined patterns, and relevance.

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