Hi Everyone, I've been measuring the performance of our company in terms of turnover, hiring, attendance, medical leaves, etc., for years now. But what I would truly like to know is, how do we measure the performance of the HR Department? How do we assess the quality of the department and our performance in comparison to the performance of the human capital? I would love to hear your views on this. Thank you.
From Malaysia, Penang
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From Malaysia, Penang
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Thank you very much for your views. I do agree on the satisfaction survey. But as for the department itself, how do we measure the quality of it? The normal KPIs that we usually measure are because we have the data with us. As for the effectiveness of the department itself, how do we measure it? I would love to hear from your experiences.
Thank you.
Regards
From Malaysia, Penang
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Thank you.
Regards
From Malaysia, Penang
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Key Performance Indicators for HR Effectiveness
It is very simple to measure the effectiveness of the HR Department. I am providing below a few KPIs for the HR Department that I have drawn from my own three decades of experience in different manufacturing and IT industries.
In the IT industry, HR is given a more important role because they recruit a large number of people in batches of 20, 50, 100, 200, etc. In manufacturing industries, the number of such manpower requirements is less, and therefore the HR department is often seen as one functional department dealing with more workers and staff-related issues like welfare, absenteeism, and overtime. However, the below KPIs are the same for both these industries. These KPIs may seem trivial, but I believe they play a very important role in retaining people in the organization for a longer period.
• Quality of food provided in the canteen
• Time taken by the HR department for the transfer of PF from the earlier organization
• Settlement of PF for retired/retrenched employees
• Time taken to settle Medi-claim/Insurance claims towards accidents/hospitalization, etc.
• Night shift facilities/allowances
• Timely distribution of safety shoes/company uniform/helmet, etc.
• HR representatives visiting workers admitted to hospitals due to accident/illness at least 2-3 times
• Attending condolences in the case of the death of kith and kin of employees
• Marriage/Special gift for newlyweds/newborns for employees of the company
• Special increment for outstanding performers, especially young engineers during any special day like Independence Day, etc.
• Flexi working hours/working from home option for 1-2 days in a month
• Scholarship for kids from company employees
• Arranging a picnic by the HR department for all employees at least two times a year
• Rotation of managers from one department to another department every two years. For example, the Quality Head can take the Production Head role, etc. Similarly, rotation of staff from one department to another department. Persons working at QC can take up Production Role. Networking engineers can take the DBA role. IT infrastructure personnel can do software development, etc. This will eliminate all sorts of office politics and favoritism.
• Software for 360-degree open appraisal on the company intranet site if this is not available
• Deputation of persons for outside training from every department and publication of the training calendar planned vs. actual
The list is endless, and the more creative and transparent you are, the better the climate and employee satisfaction level in the company. After all, you need a certain budget to initiate and carry out such tasks on a regular basis every year, which can be discussed with the appropriate senior person of the company like the factory head/CEO, etc.
Regards,
Harirajan
From India, Mumbai
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It is very simple to measure the effectiveness of the HR Department. I am providing below a few KPIs for the HR Department that I have drawn from my own three decades of experience in different manufacturing and IT industries.
In the IT industry, HR is given a more important role because they recruit a large number of people in batches of 20, 50, 100, 200, etc. In manufacturing industries, the number of such manpower requirements is less, and therefore the HR department is often seen as one functional department dealing with more workers and staff-related issues like welfare, absenteeism, and overtime. However, the below KPIs are the same for both these industries. These KPIs may seem trivial, but I believe they play a very important role in retaining people in the organization for a longer period.
• Quality of food provided in the canteen
• Time taken by the HR department for the transfer of PF from the earlier organization
• Settlement of PF for retired/retrenched employees
• Time taken to settle Medi-claim/Insurance claims towards accidents/hospitalization, etc.
• Night shift facilities/allowances
• Timely distribution of safety shoes/company uniform/helmet, etc.
• HR representatives visiting workers admitted to hospitals due to accident/illness at least 2-3 times
• Attending condolences in the case of the death of kith and kin of employees
• Marriage/Special gift for newlyweds/newborns for employees of the company
• Special increment for outstanding performers, especially young engineers during any special day like Independence Day, etc.
• Flexi working hours/working from home option for 1-2 days in a month
• Scholarship for kids from company employees
• Arranging a picnic by the HR department for all employees at least two times a year
• Rotation of managers from one department to another department every two years. For example, the Quality Head can take the Production Head role, etc. Similarly, rotation of staff from one department to another department. Persons working at QC can take up Production Role. Networking engineers can take the DBA role. IT infrastructure personnel can do software development, etc. This will eliminate all sorts of office politics and favoritism.
• Software for 360-degree open appraisal on the company intranet site if this is not available
• Deputation of persons for outside training from every department and publication of the training calendar planned vs. actual
The list is endless, and the more creative and transparent you are, the better the climate and employee satisfaction level in the company. After all, you need a certain budget to initiate and carry out such tasks on a regular basis every year, which can be discussed with the appropriate senior person of the company like the factory head/CEO, etc.
Regards,
Harirajan
From India, Mumbai
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The HR Department is supporting the Management in evaluating performance in various areas such as manpower supply, employment, effective utilization of resources, machines stopped due to lack of manpower, absenteeism, leaves availed, man hours engaged in overtime, and stoppages of work caused by unrest or petty issues.
Regards,
D. Gurumurthy
LL.HR & IR Consultant
From India, Hyderabad
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109Regards,
D. Gurumurthy
LL.HR & IR Consultant
From India, Hyderabad
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Thank you for your view, Mr. D. Gurumurthy. In our company, we would like to have all departments be significant. No doubt, HR is there to support everyone else. However, if we view the department on its own, we would want it to have a certain quality in it. So I'm trying to get everyone's view on how to make the department itself better. I hope you are able to see where I am coming from.
Thank you.
Janice
From Malaysia, Penang
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Thank you.
Janice
From Malaysia, Penang
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