For most people, measuring the success and performance of the human resources team is a tricky affair, but this article and the free template of a human resources report card provided with it can make this difficult task easier. Read on to find out more about this wonderful tool.
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Are you aware that the success of human resources efforts can be gauged using a simple tool known as a Human Resources report card? If you’ve never heard about it or aren’t aware how to make one, but are keen on using this technique to measure the performance of your human resources department, then this article is a must read. To get a better understanding of this concept. you can download a free copy of the human resource report card template from the link below, and keep it handy as you read through this article.
In a business unit, it’s important to determine the success and performance of each and every department form time to time, and determining the success of HR efforts in no exception. With the help of the human resources report card template that you can download from the above mentioned link, you will be able to quantitatively define the performance of the human resources efforts. Here are instructions on how to use this template.
The template tries to evaluate human resource efforts on two levels – in terms of goal achievement and in terms of everyday performance.
Starting on the left, the first section requires the user to enter a list of goals or objectives that the Human Resources team was required to achieve during the period for which the report is being generated. The information the user must furnish in this section are:
The list of goals or objectives goes into the first column.
The second column is meant to elaborate on the goal in terms of the expected outcome.
In the third column the list of strategies or measures to be used for achieving the objective can be listed.
In the responsibility column the name/s of the individual/s that are responsible for achieving the goal can be added.
Under the ‘Weight’ section the user has to assign a relative importance to the goal. This relative importance can be defined as 10 or in multiples of ten, out of a total of 100 points. It’s important here is to ensure that the total of the importance does not exceed 100.
In the achievement column the user has to fill in the current status of the goal in terms of percentage of the goal accomplished. (Numbers are sufficient, please do not use the % sign - for instance if 70 percent of the goal has been achieved enter 70 and not 70%.)
The column on the far right titled “Performance score" will automatically calculate the score for each goal.
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This section of the template requires figures and statistical data to compare human resources performance for the current period against the figures from the preceding period. If the human resources report card is to be tabulated for a quarter, the data for the last quarter should also be at hand, likewise if it’s being made on a monthly basis the previous month’s data will also be required. This section is divided into three sub-sections and here is a list of pointers for feeding in data across these sections.
Cost per Hire: This is the average cost of filling up a job vacancy and should take into account – vacancy advertisement charges, employment agency commission, relocation charges etc.
Turnover Cost: This is the average cost of employee turnover and in addition to taking the cost per hire into account the cost of termination or relieving is also added to the amount.
Training Cost per Employee: This is the average cost incurred on training new as well as existing employees.
Average Claims: This is the average amount of employee claims disbursed during the period.
Average Employee Compensation: This can be calculated as the total amount of salaries paid divided by the total number of employees.
Employee Retention and Management:
Vacant Period: The total number of days any job position has remained unfilled during the period
Lost Work Hours
Accidents and Hazards: Here instead of entering the number of accidents, its better to put in the total amount of financial loss suffered due to the accidents for a more accurate analysis.
Human Resource Efficiency
Revenue per Employee: This is calculated as the total revenue of the business divided by the total number of employees.
Employee Productivity: Total revenue divided by total number of logged work hours is the employee productivity.
Skilled/Unskilled Employee Ratio: The ratio of skilled versus unskilled employees.
Human Resource ROI: The return on investment for human resource can be calculated as total revenue minus all other expenses except employee costs divided by the total employee compensation.
Training ROI: this field requires the return on investment for all the efforts and expenses made towards employee training.
The performance measurement section requires the user to furnish three types of data – the previous period’s data, the current period’s data and the weight for each criterion. The weight is the relative importance for the particular criterion. Here again the user has to distribute a total of 100 points across the five criteria under each sub-section.
Once these three fields have been filled the human resource report card template will provide the following information:
Achievement: The achievement column will show the percentage achievement and can be both negative as well as positive. Every criterion which shows a negative achievement should be on the priority list over the next period.
Performance Score: The performance score tries to indicate how much each criterion affects the overall performance of the human resource department.
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The Final Score:
On the right upper hand corner of the human resource report card template, the overall performance score will appear in a yellow box. Although this single figure speaks volumes about the performance of the human resource team, still each of the criteria on which the performance has been checked should be given individual attention at the time of evaluating the progress and at the time of setting the goals for the next period.