KPI for HR manager and every detail you must know

KPI for HR manager and every detail you must know

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  • KPI for HR manager and every detail you must know

 

KPI for HR manager and every detail you must know

 “Defining the key result areas gives the clarity around what should be done so that one can focus, be highly productive, and make the most impact in his/her role.” – Rajesh Padmanabhan

The HR department’s operations are becoming more and more vital for the future of the company. A massive part of a positive employee and staff experience is determined by the Human Resources successful service. Therefore, how to measure HR effectiveness is being asked by more business owners nowadays. Keep on reading if you are a business owner facing difficulty in measuring your HR department’s effectiveness.

The HR department’s operations are becoming more and more vital for the future of the company. A massive part of a positive employee and staff experience is determined by the Human Resources successful service. Therefore, how to measure HR effectiveness is being asked by more business owners nowadays. Keep on reading if you are a business owner facing difficulty in measuring your HR department’s effectiveness.

It is absolutely essential for you to understand some responsibilities of HR department of your company and realize the vat responsibility it holds:

1. Determine the needs of new staff and the needed qualities for new employees.

2.  Determining the needs of the company for temporary or full time employees due to the needs.

3.  Evaluating the work and the progress of each employee in order to motivate them.

The answer to the question of how to measure HR performance can be a bit tough. Mainly effectiveness of the human resources department is through measuring key performance indicators also known as the HR KPIs. These indicators basically are HR metrics that are used to see how HR is contributing to the rest of the People & Organization’s plan and progress. This means that a KPI in HR measures how effective HR department has been in following the organization’s HR strategy plan.

Key result areas also known as KRAs mainly define the job description for the employee and enable the staff to have better clarity of the role they play in the future of their company.  It also helps employees to align their role with the management plan. KRAs are vast topics on which the employee has to focus on. These strategies can then be absorbed into the organization’s long term strategic plan with appropriate responsibilities and time frames assigned. This set of longer term strategies must then be translated into a balanced set of operational objectives, which are foundational to building and implementing the near term operating plan. If you are interested in this article, you can also read How to improve human resources department? article.

 

To increase HR’s efficiency, it is vital to use KRA and KPI indicators.

Sample KRA and KPI for HR manager

Good and effective KPI for human resource manager must be:

–         Actionable

–         Simple

–         Aligned

–         Owned

Here is a list of human resources KPI examples to put on your HR checklist:

 

1.      Absence rate: This rate is measured by dividing the number of working days that the employee was absent by their total number of working days.

2.      Absence cost rate: This rate is usually measured by including employee pay, the cost of managing absence, and replacement cost.

This KPI indicator is especially suitable for EU countries with a strong high amount of employee protection.

3.      Employee’s Benefit satisfaction rate: this rate is usually calculated using an employee engagement survey. These can be very helpful in decreasing the company’s employee turnover.

4.      Employee’s productivity rate: can be hard to measure.

5.      Employee satisfaction index: it gets measured using employee’s engagement surveys. Dissatisfaction can be a common motive for employee turnover.

To sum up what has been told

 

It is impossible to achieve 100% productivity but you can maximize with a human resources improvement plan and come close by acquiring KPI and KRA indicators. Most HR responsibilities are very complicated and they need special knowledge and it’s better to consult with a professional or hire a consulting company. If you are a business owner, it is advised that you do not overlook the importance of this department and take the best measures in order to boost your productivity and maximize your company’s efficiency. You can check out our blog on “How to improve human resources department?” to improve your knowledge.

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