HUMAN RESOURCES
IES publishes guide to HR performance indicators
There is now a mounting body of evidence that good human resource practices really do help give organisations the edge over their rivals. But, according to new research from the Institute for Employment Studies, this may not be enough. It is vital that if you do invest in sophisticated HR practices you can show that they have contributed to the business needs of the organisation. All too often, that outside research may not be perceived as relevant to your own business.
Human resource and reward practitioners are increasingly being asked to justify in a systematic way the cost of their activities – not just of the HR function itself, but the array of practices and approaches that allow organisations to attract, retain and successfully utilise their people.
As the IES researchers observe: It seems that the time is right to develop a comprehensive set of people indicators, which can take their place alongside existing key performance indicators.
At the heart of this 51-page IES report is a three-step programme for developing the so-called people measures, which looks at why such indicators can be helpful and how to choose the most appropriate measures, with guidance on their most effective use.
But HR practitioners need to remember to avoid the trap of attempting to measure everything, the report says. One of the big problems in measurement is the temptation to measure everything and create a multiplicity of performance indicators. As well as being time-consuming, this approach can lead to serious problems not being spotted in a mass of data it also causes information overload or even paralysis. A focus on the key issues can help here.
The report encourages HR practitioners to develop a range of people measures in the organisation which can be integrated with more traditional indicators of finance and productivity to form part of a balanced scorecard-style portfolio.
What you'll find in the IES report:
insights into how to get to grips with measuring the effectiveness of management and employee performance
advice on how HR practitioners can get a better understanding of the business strategy of their organisations
a framework for presenting, calculating and analysing people indicators
guidance on developing a set of measures for your own HR function.
Report details
Title: Employee returns: linking HR performance indicators to business strategy, IES Report 365, by Alison Carter and Dilys Robinson.
Availability: the report may be purchased from Grantham Books, tel: 01476 541080.
Price: £ 19.95
For a summary of the report jump to . . .
www.employment-studies.co.uk/summary/365sum.html
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The Institute for Employment Studies is an independent, not-for-profit, research and consultancy organisation. Based in Brighton, United Kingdom, IES conducts applied human resource research and consultancy for a large number of UK employers, providing a robust and objective view of HR and business issues. It also undertakes employment policy research for government, agencies, the EU and for research foundations.
Post: Mantell Building, University of Sussex, Falmer, Brighton BN1 9RF
Tel: 01273 686751
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email: stephen.bevan@employment-studies.co.uk
web site: www.employment-studies.co.uk