Basic metrics of effective work of the HR department. Part 3

The HR manager is an important link in the life of the company. Its tasks include searching for candidates, improving the skills of personnel, and minimizing reputational risks while reducing staff. All actions of the HR manager have a direct impact on the level of efficiency of the company. If you let things take their course, and do not evaluate the effectiveness of the activities carried out, the company will stagnate, increase costs and reduce revenue.

In the first article of the cycle devoted to the use of analytics in the work of the HR department, we talked about the basic KPIs that allow evaluating the actions of the HR manager. In the second-about the parameters that need to be controlled by HR, and in the final material, we will continue this topic.

Average performance rating

Average performance rating – a system for evaluating work in percentages or points. It is important for the HR manager not only to implement this practice in the organization but also to regularly conduct cross-sections. Beginners should be evaluated at intervals of 3 months, “old — timers” – at intervals of six months. Do not forget to compare the dynamics of the work of the departments as a whole – these data can become a marker of changes in the atmosphere of the team.

The increase in the average value for individual employees indicates a qualitative improvement in training.

It is important not just to calculate the rating, but also to correlate it with profit. After all, firstly, the increasing contribution of employees should have a positive impact on financial flows. And, secondly, the increase in labor efficiency should always be higher than the increase in the percentage of salary expenses for the year. Simply put, while maintaining the cost fund at the same level, the profit from the activities of the staff, in a normal situation, increases.

“On paper” everything seems simple and obvious. But in life, unfortunately, it happens a little differently, and the average performance rating, with enviable persistence, does not move from the dead point. The HR manager begins to frantically search for the problem, inviting all sorts of business coaches, implementing “best practices” from the Internet and making a thousand and one more chaotic body movements that do not bring the desired effect. All this happens against the background of irrevocably passing time.

The software package Mirobase will help to cope with the task of HR. Instead of implementing incomprehensible tips that are based on someone else’s experience and completely different realities, it is easier to find working effective models in your own, native, company. To do this, it is enough to identify the “leaders “and analyze how their actions differ from the behavior of the “laggards”. The “Categories/Deviations” report can solve the problem. Differences in the performance of the same tasks are often the “success factor”. Companies using Mirobase conducted analytics and found that a productive manager responds to requests faster, sends out more correspondence, and has a wider circle of contacts than his colleagues. The indicators that distinguish a “leader” from an “outsider” vary from business to business. But the principle is always the same. As the famous English expression says – “the devil is in the details”. Only by detecting the little things that directly affect productivity, which are specific to a particular type of business in the current environment, we can achieve an increase in financial performance. The implementation of other people’s practices, in 9 cases out of 10, leads to a deterioration of the situation. It is impossible to find the notorious “small differences” by eye, without the use of digital systems.
Another key point for HR, which Mirobase will help to understand: the analysis of the performance rating of departments. There are often situations when, against the general background of growth, a division is not only showing dynamics, but also sharply losing ground. And this is despite the fact that the company has found and implemented effective work models.
The reason for this phenomenon is often a hidden conflict that has gone beyond the “one-on-one” confrontation. This can be a mass bullying of the “white crow”, during which Brothers in trade begin to think not about work, but about how to annoy a neighbor. Or the confrontation of groups in the team, differently assessing the current processes in the company. In the end, a change of head, and the non-recognition of the new leader as part of the subordinates – is a great reason for confrontation.

By monitoring communication in messengers, correspondence and the circle of contacts, the manager, and with him HR, will promptly detect such a situation, understand the root causes and stop the development of a conflict that negatively affects work processes.

The HR manager’s job consists of 90% analytics, and only 10% of the time is spent searching for new employees. The success of all 100% of the tasks depends on the availability of operational information based on facts, not assumptions. In order for newcomers to quickly feel like they belong in the team, labor productivity has reached the desired level, and KPI has worked, it is necessary to evaluate a number of key indicators on a daily basis. And this is not possible without analytics systems that aggregate data. Mirobase will help to collect the necessary information, conduct research activities, evaluate the implemented changes and will constantly have a keen sense of the pulse of the company’s life.

Thanks to the monitoring of personnel actions and a variety of reports, HR will finally be able to perform all the duties assigned to it and will no longer be a regular recruiter.

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