HR performance and 72% said they benchmark HR activities
(particularly compensation and rewards, and equipment and
retention, and performance appraisal) by comparing their results to
other firms'.The HR Scorecard is crucial in this measurement process. As
noted earlier, it is a visual and/or computerized model that shows
the quantitative standards, or "metrics" the firm uses to measure
HR activities, and to measure the employee behaviors resulting
from these activities, and to measure the strategically relevant
organizational outcomes of those employee behaviors. It
highlights, in a concise but comprehensive way, the causal links
between the HR activities, and the emergent employee behaviors,
and the resulting firm wide strategic outcomes and performance.
The HR Scorecard thus helps the HR manager demonstrate how
HR contributes to the company's strategic and financial success.
Several consulting firms provide Web-based services that make it
easier to create HR Scorecards, based on metrics from best-
practice, world-class firms.Step 7: Periodically Evaluate the Measurement System : The HR
manager cannot assume that the HR Scorecard's various
measures (metrics) and links will always stay the same. Perhaps
reducing grievances is not having the assumed effect on raising
morale. Perhaps the company must drop some firm wide employee
measures (such as front-desk customer service) and add new
ones. Perhaps the measures the HR manager chose (such as
number of grievances) are proving too hard to quantify. In any
case, the HR manager should periodically evaluate measures and
links, to make sure they are still valid.