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Saturday, November 14, 2009

The Logic Behind Human Resource KPI

It is an ideal for any human resource department of any existing company today to be very familiar with human resource KPI, otherwise known as key performance indicators. If you want to make sure that your company has topnotch productivity, then this is definitely something you should not be without.

From the name itself, Human resource key performance indicators denote some sort of measurement system, right? This is actually correct because the indicators act as level indicators of the performance of each and every employee that comprises the
company’s workforce as a whole. You just cannot discount the fact that a company’s workforce is the most important and relevant asset it has. With proper motivation and channeling, everyone in the workforce can perform together towards the
common goal, and that is, the company’s success. Because whatever success the company garners, the members of its workforce will also reap its rewards.

This is exactly why human resource key performance indicators are very much needed in any company. With the establishment of the appropriate indicators in a certain company’s framework or system, its HR department can now quantify the value of each employee, in terms of the following aspects: initiative, quality of work, teamwork, cooperation, productivity, and problem solving skills. These are just some of the aspects that the key performance indicators would measure in every employee. But,
mind you, key performance indicators are not just about the production side of the company. There are also social skills that are being measured by these indicators. How an employee interacts with his fellow workers is also important in the success of any business. And this is also being measured by HR KPI.

By making the employees aware of such indicators, they will surely find it in themselves to show not just the administration and HR personnel of the company but also their fellow workers just how productive they are in their work. Once you know that your productivity and other work-related skills are being measured, this will definitely motivate you to perform better. This ultimately means more productivity for the business as a whole.

Human resource key performance indicators are also used in management. Plotting these indicators on a diagram, managers and HR personnel can interpret the data gathered and determine at which areas a certain employee would need improvement. The strengths and weaknesses of each employee would be diagramed for scrutiny and thorough examination. This way, the management would be able to inform the employee of his weak areas, and can then move on to finding and implementing ways on how the
employee can improve on these areas. Human resource KPI is not just about the growth of the company in terms of productivity and profit. Rather, HR KPI is also used in attaining professional growth for all employees. In determining which human resource KPI to be measured, it would help to ask the employees certain questions. Do the employees like their jobs, as well as the job responsibilities and tasks included in their positions? Do the employees have healthy work relations with his fellow workers? What about his work relations with the administration and management staff of the company? Do the employees find their environment conducive
and healthy for work? These are merely some of the many questions you can ask when choosing the relevant human resource KPI the company would be using.


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