Friday, 25 January 2008

Benchmarking the HR function

XpertHR cover an IRS survey on HR benchmarking.

It finds:

"Seven out of 10 respondents make some attempt to measure the effectiveness of their HR function. Around half those that do so (33.6% of all panel members) said they use formal measures, while the remainder (36.6%) said they use informal measures.

This leaves around three out of 10 (29%) of our panel working in organisations that make no attempt to measure how effective their HR department is."

Fine, but actually it's only the fifth and last two bars on the graph which measure HR effectiveness (spending against budget, HR's role in decision making process - which I think it an excellent measure - and benchmarking performance against other HR departments).

The other bars relate to:

  • Human capital measures: staff turnover data, absence management data, disciplines / grievances data.

  • HR activity measures: exit interview feedback, time to fill vacancies data.

Results of employee surveys and anecdotal / informal feedback are interesting - these could relate to human capital or HR activity measures depending on whether they ask about the individual (eg are you proud to talk about the organisation with your mates in the pub, are you planning to leave in the next two years), or about how the individual is treated (eg did you have an opportunity to input to your performance appraisal).