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Measuring Your HR Effectiveness Is a Powerful Tool for Growth

Posted on October 21st, 2016 Read time: 2 minutes

Knowing how strong an impact your HR team has on your company is a key indicator of how successful your organization may be down the road. Learn five ways of measuring your HR’s effectiveness so you may better plan ways of expanding your business.

Efficiency

 It’s essential you measure how efficient your HR department is at implementing policies, programs, and initiatives for effectively engaging and managing your employees. For example, you should know the levels of consistency, responsiveness, effectiveness, and quality with which HR provides services, as well as how much money your company spends on HR functions. Your measures of effectiveness may include determining how many and what types of issues your HR staff resolve on average, as well as your ratio of HR costs to overall business costs.

Output

 You also need to measure whether HR is implementing effective policies, practices, and strategies for maximizing employee recruitment, engagement, development, output, and retention. Your measures of impact may include the number and ratios of new hires, promotions, and retained employees; or the number and ratios of employees in development programs. You may include whether those employees achieve their learning objectives, and how those objectives impact work performance.

Team Management

 Measuring how effective your managers are at promoting high employee morale, task engagement, individual and team contributions, and departmental productivity is also vital. Measuring how effectively managers develop their team members may include tracking employee absence rates and ratios or the effectiveness of utilizing personal development plans, appraisals, and feedback.

Human Capital

 You’ll also want to measure your level of human capital, including the skills, knowledge, experience and other benefits your employees use for improving business performance and achieving company goals. Human capital may be measured by the number of employees with specific skills and experience, including changes in those numbers; or the monetary value of innovations your employees make for your company.

Strategic Impact

 It’s important you measure how effectively your business operates as a result of how your employees produce output. Strategic impact may be measured by changes in the relationships between levels of employee engagement and customer satisfaction, or your number of workers with specific skills necessary for business growth.


Measuring how effective your HR department helps you set new paths for continuous business growth. For further assistance with expanding your company, get in touch with the trained experts at Innovative Employee Solutions today!

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