It is very simple to measure effectiveness of HR Department.I am giving below few KPI for HR Department which I had drawn from my own 3 decade of experience in different manufacturing and IT Industries.In IT Industry,HR is given more important role because they recruit large number of people in batches of 20,50,100,200 etc.But in manufacturing industries,number of such manpower requirements are less and therefore HR department is often seen as one functional department dealing with more workers and staff related issues and welfare on absenteeism,overtime etc.However,below KPI is same for both these industries.These KPI's may look silly but I feel they provide very important role in retaining the people in the organization for longer period.
1.Quality of Food provided in Canteen
2.Time taken by HR department for transfer of PF from earlier Organization
3.Settlement of PF for retired/retrenched employees
4.Time to settle Medi-claim/Insurance claims towards accidents/hospitalization etc
5.Night Shift facilities/allowances
6.Timely distribution of safety shoes/company uniform/Helmet etc
7.HR representative visiting Workers admitted in Hospitals due to accident/illness for atleast 2-3 times.
8.Attending condolences in case of death of kith and kin of employees
9.Marriage/Special Gift for Newly Weds/New born for employees of company
10.Special increment for outstanding performers especially young engineers during any special day like independence day etc
11.flexi working hours/working from Home option for 1-2 days in a month
12.Scholarship for Kids from company employees
13.Arranging a picnic by HR Department for all employees atleast two times in a year.
14.Rotation of Managers from one department to another department every two years.Like,Quality Head can take Production Head Role etc.Similarly,Rotation of staff from one department to another department.Persons works at QC can take up Production Role.Networking engineer can take DBA role.IT infrastructure person can do software development etc.This will eliminate all sorts of office politics and favouritism.
16.Software for 360 degree open appraisal on company intranet site if this is not available.
17.Deputation of persons for outside training from every department and publication of training calender planned vs actual.
The list is endless and more you are creative and transparent,better will be the climate and employee satisfaction level in the company.After all,you need certain budget to initiate and carry out such tasks on regular basis every year which can be discussed with appropriate senior person of the company like factory head/CEO etc.
Regards
Harirajan