How the HR Scorecard Works: A Case Study of KPIs in HR

The performance of human resources and how they are managed are among the most important aspects that every company must consider. Effectively monitored HR performance is an organizational asset. This is because the company can use a transparent report on employee productivity to its advantage. However, it is not easy to improve the competence of the company’s human resources department. To effectively know how workers are doing their job, you can easily use KPIs for HR. KPIs or Key Performance Indicators are used to keep track of how well the department is doing. The data collected here can be helpful in making the right decisions. If you are going to check the efficiency of your employees, you can use the HR scorecard. To address the problem or difficulty in understanding what it is, you can easily use the HR KPI case study.

There are different types of balanced scorecard for the human resources department. The first is the scorecard of all employees no matter what their division is. This human resources BSC aims to measure and improve the performance of the human resources department. Another way is the recruitment BSC which, as the name suggests, controls the recruitment of new candidates and also the status of current employees. Other types include training, retirement, outsourcing, leadership, and motivational scorecards.

In the HR KPI case study, you need to indicate the problem you want to address. In this situation, the main problem is how to apply the balanced scorecard for the HR department. As you know, the BSC contains the key performance indicators for HR. There are four perspectives you need to look at here, which are finance, internal business processes, customers, and learning and growth. All of these are connected to your company’s vision and strategy.

Through your research on human resource indicators, you will learn that there is a big difference between the application of the balanced scorecard in the public and private sectors. When we talk about the financial perspective in the private sector, the main concern here is how to deliver value to stakeholders. On the other hand, the public sector focuses on the value of taxpayers and society itself. Knowing the differences here encourages users to modify the Balanced Scorecard execution. This is necessary because you need to know how you can apply the BSC whether you are in the public or private sector. In this way, you will determine what your focus should be and what should be maximized.

Your KPIs for HR need to be reliable, transparent, and measurable. You will learn that it is necessary to prepare the job description, job specification and performance standard. The HR KPI case study will help you measure the jobs performed by your employees and also discover ways to improve their skills and knowledge about a particular area in the business.