HR function KPI\u2019s are defined the same way as Human Capital KPI\u2019s except that they are internally focused, rather than focused on the broader organization.\u00a0 One should not be blind to the large amount of overlap that the two types of indicators have on each other though.\u00a0 When looking at the performance of the HR function, it\u2019s obvious that negative or positive performances will impact the workforce through engagement, productivity, or skills.<\/p>\n
There are many metrics out there, but to be of most value, what you really want to use your KPI\u2019s for is to focus on where the HR function adds strategic value to the organization.\u00a0 Taking an easy example, time to fill is a pretty standard metric that some people consider a recruiting KPI \u2013 and it sometimes is.\u00a0 However, time to fill as a recruiting measure within the HR function may also be closely linked to quality of hires and eventually productivity and profitability.\u00a0 If your time to fill has gone up (takes longer) then it\u2019s possible that the job market has tightened and good candidates are harder to find.\u00a0 This might lead to lower quality hires and lower productivity.\u00a0 In this case, an HR Function KPI might be a leading indicator of future productivity.\u00a0 On the other hand, its also possible that your employer brand suffered major losses, for example after a scandal in senior leadership.\u00a0 Now that same HR Function KPI is a lagging indicator of your employee value proposition.\u00a0 Certainly there are more powerful examples of a KPI that supports your strategic mission more directly, but this is just an example.<\/p>\n
After defining KPI\u2019s that can be measured towards the value add to the organization, you\u2019ll want to look at KPI\u2019s that measure the effectiveness of the HR function.\u00a0 In another example, I\u2019ve spent much time on systematicHR complaining about the performance management process.\u00a0 The employee performance score metrics are really not helpful here.\u00a0 What are more interesting KPI\u2019s is the diagnosis of the process itself by tracking gains in employee productivity, advancement or engagement and correlating them to the performance process.\u00a0 You can also do this same correlation with other talent management processes.\u00a0 By doing this, you know which processes are currently impacting the employees both positively and negatively and act on them.\u00a0 You may find that the performance process does nothing but take time from employee\u2019s jobs, that the performance score does not indicate real performance, or that the process actually makes a difference in the work lives of employees.\u00a0 Without understanding how the function works and knowing what the indicators are of effectiveness, you\u2019re at a loss for running your HR function.<\/p>\n
As HR becomes more \u201cstrategic\u201d more of us are getting to understand how we can use metrics not only in every day work life, but also how it supports and advances our goals and strategies.\u00a0 Becoming familiar with KPI\u2019s is critical to our support of the business.<\/p>\n","protected":false},"excerpt":{"rendered":"
HR function KPI\u2019s are defined the same way as Human Capital KPI\u2019s except that they are internally focused, rather than focused on the broader organization.\u00a0 One should not be blind to the large amount of overlap that the two types…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[27,8,2],"tags":[],"class_list":["post-730","post","type-post","status-publish","format-standard","hentry","category-data-metrics","category-strategies","category-hr-technology"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=730"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/730\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}