Today’s HR executive is being challenged to do more as a strategic partner. One of your best tools is the HR Scorecard. It can take many formats including graphs, tables, Powerpoints, timelines, etc. Let’s discuss how to measure what matters and what to do with the data and information obtained.
- Measure what matters. For example, if an objective is to reduce the cost of hire, why is that important? Do you intend to do a lot of hiring in the next 12 months? If not, why bother measuring the data? Strategic HR executives always ask how the data they are analyzing ties to the vision, mission, values, goals, and strategic objectives for the company and their department.
- Rank it against other objectives. Is perfecting your cost of hire as important as retaining your existing employees? For example, if you intend to hire 50 employees and reduce the cost per hire by $1,000 each, that’s a savings of $50,000. However, if you lose two well-trained employees, the replacement costs would easily dwarf the cost of savings per hire. Therefore, we want to prioritize our objectives so we work in our highest and best use. That’s optimization of HR as a resource.
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