Keeping in mind the pressing HR Challenges in contemporary business scenario,
HR Summit, 2011 is based on: "HR METRICS"
HR metric refers to Human Resource Metrics. It provides a number of factors that
can be measured to show how HR contributes to the business. HR is now a key role
in developing and implementing corporate strategy as well as becoming a high
value-added part of an organization. HR Metrics provides a measurement and the
analytic and data based decision-making capability to influence business strategy
with an attempt to make better decision.
Metrics are of 3 kinds:
1. Efficiency of the HR Functions
2. Effectiveness of the HR functions
3. Developing company's core competency
Efficiency of the HR Functions:
It explains how efficient the HR is in doing their administrative work. The data can
be collected in database of the company. This data allows companies to compare
the performance of their own HR department with other HR departments in other
companies.
Some examples on efficiency of the HR functions are:
Cost per hire: It is the cost associated with a new hire. It is not only important to
know how much it costs in hiring, but it is also important to see if the money spent
is used to hire the right people.
Cost of Employee Training: Total training cost expense on total headcount.
Effectiveness of the HR functions:
It shows that HR practices have a positive effect on the employees or the applicant
pool. It is very important for HR because they are the leader for acquiring,
developing and helping to deploy talent.
Some examples on effectiveness of the HR functions:
Employee Motivation: The level of employee motivation i.e. percentage of
employees who are challenged to continuously improve and advance in their
career.
Employee Satisfaction: The level of overall employee satisfaction.
Developing Company's Core Competency:
It helps to demonstrate the connection between HR practices and the tangible
effects on organization's abilities to gain and sustain their competitive
advantages. This approach often treats employees as their human capital instead
of the expense.
Some of the examples are:
Revenue factor: It indicates the effectiveness of company operation with the use
of the employees as their human capital.
Defect rate: It indicates the number of defective products in the operation. The
lower the defect rate, the more effective the HR practices in developing
companies' core competency in terms of reducing cost.
Thus HR Metrics plays a vital role in the organization to get the right resources,
developing the resource by proper training & realizing the potential of the
resource. It helps measure human capital outcomes, such as talent management,
employee engagement and high performance, financial and strategic goals, and
promotes partnership with senior management for organizational success.
This summit provides us an opportunity to participate in a forum for the critical
examination and analysis of this key issue.
HR Summit, 2011 is based on: "HR METRICS"
HR metric refers to Human Resource Metrics. It provides a number of factors that
can be measured to show how HR contributes to the business. HR is now a key role
in developing and implementing corporate strategy as well as becoming a high
value-added part of an organization. HR Metrics provides a measurement and the
analytic and data based decision-making capability to influence business strategy
with an attempt to make better decision.
Metrics are of 3 kinds:
1. Efficiency of the HR Functions
2. Effectiveness of the HR functions
3. Developing company's core competency
Efficiency of the HR Functions:
It explains how efficient the HR is in doing their administrative work. The data can
be collected in database of the company. This data allows companies to compare
the performance of their own HR department with other HR departments in other
companies.
Some examples on efficiency of the HR functions are:
Cost per hire: It is the cost associated with a new hire. It is not only important to
know how much it costs in hiring, but it is also important to see if the money spent
is used to hire the right people.
Cost of Employee Training: Total training cost expense on total headcount.
Effectiveness of the HR functions:
It shows that HR practices have a positive effect on the employees or the applicant
pool. It is very important for HR because they are the leader for acquiring,
developing and helping to deploy talent.
Some examples on effectiveness of the HR functions:
Employee Motivation: The level of employee motivation i.e. percentage of
employees who are challenged to continuously improve and advance in their
career.
Employee Satisfaction: The level of overall employee satisfaction.
Developing Company's Core Competency:
It helps to demonstrate the connection between HR practices and the tangible
effects on organization's abilities to gain and sustain their competitive
advantages. This approach often treats employees as their human capital instead
of the expense.
Some of the examples are:
Revenue factor: It indicates the effectiveness of company operation with the use
of the employees as their human capital.
Defect rate: It indicates the number of defective products in the operation. The
lower the defect rate, the more effective the HR practices in developing
companies' core competency in terms of reducing cost.
Thus HR Metrics plays a vital role in the organization to get the right resources,
developing the resource by proper training & realizing the potential of the
resource. It helps measure human capital outcomes, such as talent management,
employee engagement and high performance, financial and strategic goals, and
promotes partnership with senior management for organizational success.
This summit provides us an opportunity to participate in a forum for the critical
examination and analysis of this key issue.
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