Designing an HR Dashboard
19 January 2009
Read by 2005 persons
The HR dashboard organizes a set of indicators that reflect HR priorities at a set frequency. Analysis of structures, social management, training, compensation, skills assessment... the indicators are many to measure desired changes.
"Show me that the HR function creates value." Who hasn't read or heard this challenge without immediately feeling uneasy? For most HR managers, it's a painful reminder of a reality: their more or less great ability to measure the performance of HR services and therefore prove, like other company functions, their contribution to the company's results.
To this end, the HR dashboard is a useful tool for visualizing and evaluating a set of data highlighting target objectives, gaps, and the contribution of the HR function.
As a management tool, the HR dashboard organizes, at a set frequency, a set of indicators that reflect HR priorities, past results, and desired situations. Regular measurement of any discrepancies will lead to corrective actions that will achieve the desired results. In this sense, the HR dashboard is a decision-making tool and a means of continuous improvement for the HR function.
So how to develop an effective and operational HR dashboard? We offer some advice
1. Define your objectives and indicators in the different areas as if you were going to create a "balanced scorecard" for the HR function.
2. Be precise in setting your objectives; otherwise, you will have difficulty measuring the changes you want to track and observe. For this, you will associate one or more indicators with each objective.
3. Think about how you will organize yourself to collect the data necessary to calculate your indicators, remembering to obtain feedback from your internal clients on their relevance. The cost of measuring the indicator should not be excessive for your company: be realistic and avoid overly complex systems.
4. Measure both quantitative and qualitative aspects. The former will allow you to measure the performance of an HR process whose added value is obvious: overall staff turnover rate, overall absenteeism rate, recruitment failure rate in the first 3 to 12 months, talent retention rate after an assessment, etc. The qualitative dimension will measure perceptions and behaviors. Operationally, you may need to track:
a. The payroll to demonstrate how it is contained during a fiscal year. To do this, you will track the following items against forecasts: - base salary (fixed-term and permanent contracts separately) and fixed bonuses; - overtime; - variable bonuses; - unpaid absences; - social security charges; etc.
b. Workplace accidents to track their dates, causes, duration, as well as the type of contract of the injured employee and their age.
c. Absenteeism by measuring the workforce per month, the workforce on sick leave, the number of days of sick leave, the distribution over the year, etc.
d. Training provided within the company. For this, you will use budget and cost indicators (training costs, other costs such as transport, meals, accommodation, supplies, operating costs, etc.) according to the OFPPT reimbursement rate. You may also be interested in monitoring the effectiveness of information by collecting information on the satisfaction rate of participants, managers, etc.
5. Think beyond operational HR processes because they are only a means of producing changes and developments at different levels: - levels - illustration - state of mind and culture - satisfaction of employee expectations, changes in behavior, etc. - skills - development of employees who have acquired the skills required for a given role, - commitment - adherence to orientations and changes, motivation to commit within their own role, etc.
We are aware that the HR function in Morocco, in most companies, is poorly "equipped" to produce such tools due to a lack of information and formalization. But it is a necessary effort for a function that is still in the process of "legitimization" so that it can develop its arguments and rigorously demonstrate, beyond words, how it contributes to creating value.
Abdelilah Sefrioui
Published on December 19, 2008
Posted online on January 19, 2009
lavieeco.com
"Show me that the HR function creates value." Who hasn't read or heard this challenge without immediately feeling uneasy? For most HR managers, it's a painful reminder of a reality: their more or less great ability to measure the performance of HR services and therefore prove, like other company functions, their contribution to the company's results.
To this end, the HR dashboard is a useful tool for visualizing and evaluating a set of data highlighting target objectives, gaps, and the contribution of the HR function.
As a management tool, the HR dashboard organizes, at a set frequency, a set of indicators that reflect HR priorities, past results, and desired situations. Regular measurement of any discrepancies will lead to corrective actions that will achieve the desired results. In this sense, the HR dashboard is a decision-making tool and a means of continuous improvement for the HR function.
So how to develop an effective and operational HR dashboard? We offer some advice
1. Define your objectives and indicators in the different areas as if you were going to create a "balanced scorecard" for the HR function.
2. Be precise in setting your objectives; otherwise, you will have difficulty measuring the changes you want to track and observe. For this, you will associate one or more indicators with each objective.
3. Think about how you will organize yourself to collect the data necessary to calculate your indicators, remembering to obtain feedback from your internal clients on their relevance. The cost of measuring the indicator should not be excessive for your company: be realistic and avoid overly complex systems.
4. Measure both quantitative and qualitative aspects. The former will allow you to measure the performance of an HR process whose added value is obvious: overall staff turnover rate, overall absenteeism rate, recruitment failure rate in the first 3 to 12 months, talent retention rate after an assessment, etc. The qualitative dimension will measure perceptions and behaviors. Operationally, you may need to track:
a. The payroll to demonstrate how it is contained during a fiscal year. To do this, you will track the following items against forecasts: - base salary (fixed-term and permanent contracts separately) and fixed bonuses; - overtime; - variable bonuses; - unpaid absences; - social security charges; etc.
b. Workplace accidents to track their dates, causes, duration, as well as the type of contract of the injured employee and their age.
c. Absenteeism by measuring the workforce per month, the workforce on sick leave, the number of days of sick leave, the distribution over the year, etc.
d. Training provided within the company. For this, you will use budget and cost indicators (training costs, other costs such as transport, meals, accommodation, supplies, operating costs, etc.) according to the OFPPT reimbursement rate. You may also be interested in monitoring the effectiveness of information by collecting information on the satisfaction rate of participants, managers, etc.
5. Think beyond operational HR processes because they are only a means of producing changes and developments at different levels: - levels - illustration - state of mind and culture - satisfaction of employee expectations, changes in behavior, etc. - skills - development of employees who have acquired the skills required for a given role, - commitment - adherence to orientations and changes, motivation to commit within their own role, etc.
We are aware that the HR function in Morocco, in most companies, is poorly "equipped" to produce such tools due to a lack of information and formalization. But it is a necessary effort for a function that is still in the process of "legitimization" so that it can develop its arguments and rigorously demonstrate, beyond words, how it contributes to creating value.
Abdelilah Sefrioui
Published on December 19, 2008
Posted online on January 19, 2009
lavieeco.com
