Effective human resources management ensures the organization retains the appropriate number of workers with the appropriate skills and capabilities required to support the organization’s mission. Human resource managers commonly use key performance indicators to measure results and determine the necessary actions to focus management activities. Human resource management indicators allow managers to assess the current health if human resource functions to support the ongoing success of the organization. Many of the indicators used to measure human resources management success fall into the four main categories of recruitment, retention, worker performance and compliance.
Human resources management plays a key role in employee recruitment. HR managers must develop a variety of processes and procedures to ensure the success of the organization’s recruitment programs. For example, HR managers commonly write job descriptions and ensure candidates meet the requirements to fulfill the duties of the position. The existence of such processes are key indicators of the manager’s ability to supply the organization with the necessary manpower. Some of the human resources management indicators commonly used to measure recruitment success include new employee satisfaction ratings, average costs associated with recruiting for each position and the average time a position remains open before it is filled.
Worker retention statistics are an essential indicator of human resources management success. Retention relies on a number of HR functions, including employee development, benefits and compensation. Unacceptable turnover levels may indicate a problem with one or all of these vital HR functions. Some of the human resource management indicators commonly used to measure success in retention efforts include the percentage of new hires retained in a given period, as well as the average period of time workers remain in each position.
Worker performance is a key element of human resources management. According to the Profiles International website, human resources managers must consider a few key elements when evaluating employee performance. These include whether each employee is capable of doing his job, whether he wants to do the job and whether he will do his job. HR managers must develop training and development programs designed to improve performance and ensure the organization maintains workers who are capable of meeting management expectations. Some of the indicators commonly used to measure worker performance include the percentage of employees receiving regular performance evaluations, average training costs and the average number of training hours received by workers in a given time period.
Another essential human resource indicator is the degree to which HR activities comply with federal, state and local laws and regulations. For example, the organization must manage harassment and discrimination issues in adherence with such legislation as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990 and the Age Discrimination in Employment Act of 1967. Human resource managers are also commonly involved in compliance issues such as health and safety. Some of the indicators commonly used to measure human resource compliance include the average number of harassment complaints received as well as the percentage of staff trained in workplace health and safety management.
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