The other day I was talking with a few of the CEOs in my CEO peer group here in Honolulu about measuring their HR departments.
There was a consensus around a few ”must haves” from the HR department. Not unanimous but quite ubiquitous were:
- Communicating the brand in the interview process.
- Screening for culture fit (as well as talent and experience) in the interview process
- Defining a consistent onboarding experience
- Creating a compensation system that makes sense (“bands” of compensation, industry comps, a feeling of fairness around pay scale, etc)
- Providing a defined employee development process (Personally, I’m partial to Catalytic Coaching)
- Assisting in senior leadership development (Isn’t it weird that CEOs will get PD for their staff but don’t do anything for themselves? What’s up with that, HR Department?)
Here is a long list of other KPI to consider:
Finally, here’s a list of several clever metrics that CEOs endorse for their HR department accountable:
- Revenue per employee. For others it was profitably per employee.
- Quality of hire improvement. In other words when you make a new hire, did the new hire perform better than the person she replaced?
- Performance turnover in key jobs. This is a weighted number based on profit contribution of the employee in question. Think of it this way: it costs you more to turnover a high performing individual. Weight it and measure it.
- Subjective measure of HR contribution on productivity. Sample managers and employees in order to gather data about the contribution of each HR program.
- Applications per employee. This measures both hiring funnel and company brand. For each position, how many individuals applied?
For more on this topic, see this great article:
Hope this helps!
Aloha and best regards,