Human Resource plays a key role to monitor
employee performance with the aim of maximizing the company’s profitability and
efficiency. HR departments should also focus on having their effectiveness
monitors for the exact same reason. It
can be hard for companies to measure the
effectiveness of its HR tangibly. There are a vast array of everyday
aspects of a business that are managed and controlled by Human Resources making
it difficult to monitor. With the role of HR continually updating and adapting
due to the changes in workplace demand and new technologies, measuring the
effectiveness of HR is becoming more essential.
A lot of companies don’t know what to look for when it comes to measuring HR
success. It would perhaps be unrealistic, costly and time-consuming to analyze
and evaluate all aspects of HR.
One of the biggest measures of HR success is
employee retention without a doubt. Rates of retention show if the hiring
techniques are working effectively and HR is helping to find the right
candidate for the firm or not. They also go a long way to indicating the
happiness in the workforce and employee engagement, after all, the happier the
employee, the lesser the chances of turnover in the organization. Employee
retention is easy to measure and can be done on an annual basis, quarterly
basis, weekly or even regularly without the need for much manpower.
Another crucial role of HR is to provide
training and development opportunities to the staff and transparent career
path which can boost their career growth. Therefore, a large number of annual internal promotion would suggest a
strong employee development in a firm. It will prove that the role of HR in
mentoring and training is helping the employees to climb up the corporate
ladder and hence is effective. It is true that granted promotion not only
depends upon the specific staff training programmes, but there is no doubt in the fact that it is an indicator of the
overall development of company which is at least partially influenced by HR
How to find employees are happy or not ? Employee retention and promotions are relatively
easy to calculate whereas measuring employee satisfaction is not quite the same
and is a bit trickier than that. One of the most effective ways to measure the
happiness of your staff is by offering your workforce with a satisfaction
survey. Surveys that can be done in
private and personal capacity tend to provide the most reliable and honest
results. This is because the employees are not put under face to face, immediate
pressure to respond. HR is responsible for all the regular operations in an
organization - managing everything from disciplinary action to payroll to
mediation. Employee satisfaction is a good measure of the effectiveness of the
HR department in any company. It is certainly true that the workers are
productive only when they are happy and HR make sure that this is truly the
case in every ideal organization. Listen to your employees and make better relations and ensure that the
line managers understand the requirement of staff managers, ask your employees
for their feedback. It is the only way to determine if your company is on the
right track internally.
HR plays a vital role in building a strong company culture in business. Companies with a strong culture tend to see improvements in talent acquisition and retention. HR make sure that all the employees are on the same page and it promotes this culture across the company. Ensuring there are no pay gaps among different genders, having transparency, equality, and diversity are all the measures companies should be taking to build a strong company culture.
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