How Do Organizations Use HR Practices to Boost Employee Performance? Seeking Insights!

Hey friends,

Last month, I posted this question, but I didn't get sufficient replies. For my study purposes, I need to know what the performance-related HR practices or strategies are, and what HR functions can be used or based on employee performances in organizations. Please help me. I look forward to hearing your responses.

Thank you.

Hi Shyamlee,

Some of the HR performance indicators are:

1) Resourcing: hiring status against deadlines, recruitment lead time, companies from which you are able to attract people, cost per hire, etc.

2) Attrition rate: how many employees are leaving your company and, more importantly, how many of them are high performers. This will give you the correct indication of the brain drain that's taking place in your company. Reasons for exit will be a great source of data for making management decisions, etc.

3) Training: training mandays per employee (could be in days or hours), the effectiveness of the training programs, etc.

Hi shyamee,
Some of the key performance indicators for Human Resources include but are not limited to the following.
• Percentage Budget variance-actual vs. Plan
• Employees' clarity on HR policies
• Employees' clarity on roles, responsibilities and expectations
• Development of qualitative staff
• Number of HR issues arising for which there are no clear policies and guidelines
• Competitiveness of compensation structure relative to industry benchmark
• Usefulness and accuracy of compensation survey
• Lead time to respond to staff welfare issues
• Employees' assessment of promotion criteria and process (clarity, fairness )
• Measurement of HR policy violation
• Average time required to fill vacancies
• Proportion of training programme resulting in productivity improvement
• Staff attrition rate
• Understanding / Clarity of the Organisational philosophy
i hope the above will add some value
Pinfada

Hi Shyamlee,

Besides what my colleagues have added, I would like to share the innovative ideas in PMS called "growth file."

It's a great idea indeed. Each employee maintains a Growth File which has records of his/her:

a. Participation in Cross-Functional Teams

b. Participation in Kaizen scheme (Ideas for improvement - given and implemented)

c. Participation in Continuous Improvement Team (Six Sigma projects)

d. Reduction in COPQ (Cost of Poor Quality) for his/her workstation

e. Training (participated in or imparted)

f. Position on Skill Matrix

g. 5S score for his/her workstation

All the above have certain weightage, and employees do a self-scoring on the set parameters each month. At the end of the month, all employees are assessed on QCDGP (Quality, Cost, Delivery, Growth, and Productivity), and the best employee is awarded. This also helps the supervisor to draw KRAs for the employee, and performance appraisal becomes a discussion on strengths and areas of improvement. At the same time, the employee is always on a "self-assessment mode," and continuous improvement becomes self-driven.

Cheers,

Rajat

Hi Shyamalee,

I have seen some of the responses posted. While all of them appear to be okay, I have the following to add.

There cannot be just 'one set' of KPIs for HR. It will depend on the type of industry and, most importantly, has to be closely linked to the organizational strategy. So, an approach of 'one size fits all' in all probability will fail organizations in meeting their strategic objectives.

Just like to add that a given set of KPIs, which seem okay today, may not help the organization much at another point in time. Hence, KPIs need to evolve. 💡

One good resource that comes to mind is the book 'Balanced Scorecard' by Kaplan and Norton, which brings a certain degree of clarity to the subject you have in mind.

Key steps in formulating the KPIs would be:

1. Define Org. Strategic Objectives and challenges

2. Outline internal capabilities and identify gaps on skills-competencies-behavioral aspects

3. Prepare HR strategic objectives and bring in clarity as to how the HR strategy supports the organizational strategy

4. Develop KPIs for each of the strategic objectives

5. Track and measure performance