Key Performance Indicators for Human Resources

The VP of HR at a financial services company recently asked me if I had any suggestions on People Management or People Development KPIs they can set for managers. In addition to the common HR metrics and measures, I pointed him to theses Business Foundation performance markers:

 

At the Strategic level:

- New Hire Quality

- Skills Inventory

- Base & Incentive Comp

- Succession

- Employee Sat

 

At the Operational Level

- Salary Benchmarks

- Cost per Head/Cost per Hire

- Rewards & recognition

- Diversity

 

At the Tactical Level

- # Training hrs vs. plan

- Overtime as a % of salary

- Productivity (however measured, incl. Revenue per FTE)

- Resource allocation (bench time for example)

 

For each of your KPIs, don't forget to set goals around them (with measurable targets), model them (what's the impact on the P&L and cashflow when you invest or don't invest), plan for them (put the KPIs into the workforce plan), monitor them, analyze them with related KPIs (eg: amount of incremental cross-sell/up-sell revenue compared to # of training hours or skills index), and report on them.

Here's a quick story on the importance of HR measure.

Here are some links to books about this subject (the link will take you to amazon.com):

How to Measure Human Resource Management (3rd Edition)
HR Metrics The World Class Way
The HR Scorecard: Linking People, Strategy, and Performance

Comments

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