Pointers on Developing an Efficient Human Resource Scorecard

Numbers and figures are inevitable in the world of business. Any company can attest to that. Sales, inventory, reports and such would contain numbers and figures that are relevant to the overall performance of the company, which is ultimately aimed at gaining profit at the utmost level. Profit, not surprisingly, is another figure that is relevant in the success of any company. But if there is one thing that is very hard to quantify, it is actually the human element in every company. Here lies the importance of the human resource scorecard, which is also known as the HR scorecard.

Simply put, the HR scorecard is actually a means of measuring the efforts of a company’s workforce, with the aim of improving the overall performance of the company itself. By developing this means of quantifying elements and aspects that are not quantifiable in nature, the company can actually use these figures in ensuring its overall improvement.

Just what would it take to make an HR scorecard that is of quality? There are actually a number of ways to do this. But one thing to remember here is the importance of objectivity. One can be just a bit too hasty when choosing which elements to be quantified and included on the HR scorecard. This is not an effective way to create an HR scorecard at all. If you stick with this method, you would end up with double the trouble in the end. Going through your finished product, you will have found out that your HR scorecard would have quite a number of elements that are not relevant at all. You would then have to weed these elements out of your scorecard. All in all, this waste of time would not have occurred, had you taken the time to just step back and look at the elements as objectively as possible.

Coming up with an effective HR scorecard would also require a complete and thorough examination of every single detail pertaining to the overall operations of the company itself. The details being handled by the HR department themselves should be given special attention. For the best results in developing HR scorecards, it would definitely help if managers would focus on the following aspects: functions, contributions, and value points.

Once this is done, you should then move onto the next step, which is to pinpoint a clear-cut definition of HR value. Here lies the importance of HR metrics. While HR metrics can be used for varied purposes, these actually play a huge role when employed in the context of creating the HR scorecard. Make sure to employ metrics that would bring about significant outcomes in the endeavor of developing the HR scorecard. Once the metrics to be employed has been chosen, mapping and constructing out the points that have the larger, positive effects on the business should then be distinguished. This way, you can then determine which elements should be quantified and included onto the scorecard.

The work does not stop there, though. The human resource scorecard should be updated to match whatever changes the company or the industry would go through. This way, you can be sure to have relevant elements on the HR scorecard.