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DRIVING HR PERFORMANCE | |
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Organisations have for a long time used HR measurements to evaluate how human capital impacts the business. The most common measurements and metrics have been, and in many companies still are, various HR statistics and personnel data such as headcount, salary data and absenteeism. While these metrics indirectly provide data that may be useful in evaluating HR performance, many HR leaders are realizing that they are not enough.
As many HR functions have moved from a purely HR administrative role to a HR Business Partner / HR Service Provider role, the complexity of the HR work and HR delivery has increased - as has the need to enhance and demonstrate HR's contribution as an effective, performance oriented function. The challenge for HR is to identify the specific, relevant measures it needs to evaluate and increase its success in working with people management processes, tools and service delivery models.
INTERNAL HR DIAGNOSTIC SURVEYS MindShift has in the last years seen a trend among companies to evaluate the Operational Excellence of the HR function to drive HR Performance. A new approach is to conduct internal diagnostic surveys among the line organisation and the HR community. By involving the line organisation (i.e. the customers of HR) and the HR professionals these organisations want to ensure the continuous development of the HR function and the HR work delivered in the organisation. MindShift has split the most common content of these internal diagnostic surveys into three main categories of measurements: |
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HR Priority and HR Strategy Alignment Measurements:
HR Operational Measurements:
HR Processes and Tool Measurements:
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Using the results Organisations use the internal diagnostic surveys to identify the future strategic HR issues for the business and the HR Function as well as to receive input to the overall HR Strategy and HR Action Planning process. The diagnostic survey is an effective method to evaluate the HR work delivered by the HR Professionals and Line Managers in order to identify important development areas within for example HR roles & responsibilities, HR processes & tools and the way of delivering the HR services in the company. Additionally, the results are often used to raise awareness and promote the importance of People issues and HR priorities in the organisation.
THE FUTURE OF DRIVING HR PERFORMANCE MindShift believes that in the coming years organisations will focus even more on measuring and improving the HR functions contribution to the business achievements. One approach that organizations at the forefront of driving HR Performance are implementing, is to draw the link between internal HR diagnostic surveys and the rewarding within the HR function, i.e. the results of the internal customer survey is linked to the bonus of the individual HR professionals.
MindShift also expects that the HR function needs to focus even stronger on delivering quality HR work through the line organisation. The HR professionals will be closely involved in evaluating the quality of the HR work delivered by the line manager, they will need to measure and evaluate if the amount of time line managers spend on HR tasks is effective and if the line managers have access to the right tools, guidelines and support to carry out their HR responsibilities.
ABOUT MINDSHIFT MindShift is a Human Resource & Organisation consulting firm offering strategic and operational advisory services. Our clients are mid-sized or large multinational corporations from a wide range of industries. MindShift employs seven consultants with international backgrounds in human resource management, organisational development, and business administration. | |
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MINDSHIFT, Östermalmsgatan 83, 114 50 STOCKHOLM, Sweden | |
