More than ever, the HR function is responsible for steering the strategic choices made by the company. Its mode of operation is based on the analysis, understanding and anticipation of needs and objectives. Measuring its effectiveness is a necessity in order to be able to move the right cursors in the event of a trajectory error.
The measurement is carried out by means of quantitative and qualitative dashboards established by a software Strategic Workforce Planning. These tools make it possible to define the jobs, as well as the skills necessary to follow the strategies. The steering of human resources begins with a social audit, completed by a monitoring system, followed by a phase of HR management control, the implementation of forward-looking management of jobs and skills (Strategic Workforce Planning) and an information system (HRIS).
HR effectiveness indicators
Human resources management software allows you to measure the effectiveness of the strategy. It is important to choose the right indicators (KPIs) that reveal performance.
What are the social management indicators?
These indicators make it possible to measure the quality of life at work, they are for example
- The gender equality index to be submitted each year.
- Absenteeism, strike or resignation rates as a measure of employee satisfaction.
- The number of annual departures and its evolution. This is the notion of attrition that we explain in the diagram below.
- The average time an employee spends in the company (job by job, function by function), taking into account the status and remuneration.
What are the HR performance indicators?
HR performance indicators cover a variety of areas, from the social sphere to the acquisition and mobilization of internal know-how:
- The evolution of acquisition channels
- Cost per hire to measure the effectiveness of the talent acquisition process.
- The rate of internal mobility, the proportion of positions filled internally and their evolution with respect to recruitment.
What are the training indicators?
At the training level, it is interesting to gauge the impact of strategies on employee performance results:
- The evolution of the level of skills
- Their contribution to bringing employees closer to their target career path.
- The most commonly used training methods
The social audit
The social audit is similar to setting up an internal watch which must adjust the social orientation of the company according to its needs. It also consists of positioning the company in relation to the HR strategies of competitors in the same market. It is thus possible to conduct social benchmarking operations. The social audit is accompanied by employee satisfaction surveys. It is also carried out for the users, since the work of the former influences the satisfaction of the latter.
HR management control
Once budgeted, the resources allocated to HR activities must be monitored and controlled. This is done through a dashboard that includes cost, result and means indicators. In this way, it is possible to measure and anticipate the human variables within the company. In short, a social balance sheet is carried out to specify the results obtained by following the chosen strategy, taking into account the mandatory legal provisions.
The management of jobs and human resources skills
The Strategic Workforce Planning begins with a diagnosis of the existing situation. This involves listing the jobs and the skills required to perform them. Are they present within the company or do they require external recruitment? We must then measure and anticipate the effects of changes in the workforce. The next step consists of segmenting employees according to their profile and qualifications. Finally, an Strategic Workforce Planning effective talent management strategy must be put in place based on the previous results. This way, the right cursors are moved for training, internal mobility, compensation or external hiring.
The HR information system
This process begins with the employees themselves defining the HR IT tools they need. It also involves determining which activities should be computerized. Next, it is necessary to opt for an information system that follows regulatory changes, define the functionalities to be integrated into other existing applications and formalize the access modes. Finally, it is essential to manage relations with internal and external IT service providers to ensure fluidity and perfect coordination.
The HRIS perspectives resulting from exchanges with various partners are gathered in our page“HRIS, exciting perspectives“.
