Eight Ways to Evaluate your HR Function
HR is under increasing scrutiny to manage costs, demonstrate effectiveness, and show how its contributions add value to the organization. While many HR departments claim to be ‘business partners,’ few provide evidence of a strategic business impact or recognition as valid partners by managers.
The Importance of HR Evaluation
It is essential to correctly measure and evaluate all HR activities. Evaluations allow HR to demonstrate its contribution to organizational success. Given the heightened scrutiny on HR’s real contribution and return on investment (ROI), the need for precise evaluation is critical.
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Quantitative and Qualitative Measures
HR activities can be measured both quantitatively and qualitatively. There are many assessment and measurement tools available to gauge HR effectiveness. Here are eight valuable methods:
1. Organizational Quantitative Criteria
Measure profit per employee and other financial metrics to evaluate the overall impact of HR activities on organizational performance.
2. Specific Quantified Criteria
Monitor employee behavior metrics like turnover, absenteeism (using the Bradford Factor), and service-level criteria such as time to fill vacancies.
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3. Achievement of Specified Goals
Track the achievement of goals such as training completion for all staff or the establishment of an Employee Assistance Program (EAP) for global employees.
4. Service Level Agreements
Assess response times for recruitment and selection processes or handling employee grievance investigations.
5. Subjective Overall Evaluation
Utilize independent evaluators to observe and experience the quality of HR advice and services provided.
6. User Reaction Measures and Employee Satisfaction
Conduct online staff surveys or gather exit interview data to measure employee satisfaction and user reactions to HR services.
7. Benchmarking
Compare HR functions within the organization to those of similar or matched organizations to identify areas of improvement and best practices.
8. Predictive Analysis
Evaluate the quantity, quality, and cost of HR activities using appropriate metrics for predictive analysis.
The Central Role of Evaluation in HR
Evaluation and measurement have become central issues in HR. However, many HR professionals often misunderstand these concepts. To effectively evaluate and transform your HR function based on best practices, consider enrolling in our courses.
Enhance Your HR Skills with Our Courses
Our “Leading Strategic HR Transformation” course focuses on enhancing the future of Human Resources as a valued strategic partner. You will learn how to evaluate and transform your HR function using proven methods and best practices.
