It translates an organization’s mission and strategy into a comprehensive set of performance measures

Provides the framework for a strategic measurement and management system.

Separates an organization's goals into quantifiable metrics can be applied to human resources to tackle the activities and metrics that affect the allocation of manpower and resources.

Linking clearly defined department objectives to the company’s strategic goals

Focusing human resource staff on activities that will support the company’s goals

Demonstrates the strategic value of HR by defining and measuring its contribution in concrete, clearly understood terms

This strategic management system measures organizational performance in four ‘balanced’ perspectives

Financial

Customers

Internal business processes and

Learning and growth.

HR manager asks "How does the performance of the organization's team look to shareholders?“

Without a dedicated and motivated staff, financial success is impossible to achieve

So collecting accurate financial data as it relates to HR is important for the company's overall strategy.

The HR manager asks herself "How does the organization's staff look to customers?“

Satisfied customers keep coming back and HR can have a huge impact on this turnover.

The business process perspective seeks to answer two questions:

"How effective is the organization at its internal operations?" and

"Where must the organization excel to remain profitable?

There are several metrics that can be measured, including quality of products and services, the time it takes to answer customer inquiries and inventory management.

It asks the question "What can the organization do to improve?“

Focuses on the development of the business's employees.

The idea is to create an open team-centered atmosphere where employees feel free to bring up problems and solutions.

The balanced scorecard approach takes the data and information

Combines the information into a cohesive plan for action

From the HR perspective, this means deciding on new processes for staff development, payroll adjustments, increased benefits or employee compensation and motivation programs.

Objective: Reduce turnover costs.

Description: Develop effective recruiting methods and new-hire orientation methods to optimize the retention of new hires.

Actions:

◦ Identify key attributes of successful employees who stay at the company for two or more years.

◦ Utilize technology more effectively for recruiting and screening applications.

◦ Identify selection methods that will contribute to successful hires.

◦ Integrate branding efforts into recruiting.

◦ Revise the orientation program to ensure new-hire retention.

Measures:

◦ Cost-per-hire (financial).

◦ Turnover rates and costs (financial).

◦ Time-to-fill (business process).

◦ Customer satisfaction with new-hire performance (customer).

◦ New-hire satisfaction with orientation (learning and growth).

◦ Supervisor satisfaction with orientation (learning and growth).

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