The reason for existing human resource areas in companies can be summarized in the following sentence:
"Ensuring the right people are in the right places."
Of this great objective is that the main processes that are managed by those responsible for people within a company are broken down:
a) Recruitment and Selection: everything starts by hiring well.
b) Training and Development: giving the necessary tools to the development
c) Motivation and Career: creating a clear path of growth
Each of these large areas has its own metrics and methods that can help you understand if your business is actually achieving better people management results. So let's see each one of them.
Recruitment and selection
It all starts with the recruitment and selection, because if you are hiring the wrong people for the wrong positions, all the rest will suffer. Within recruitment and selection, there are 3 great metrics that will tell you if your actions are being successful in this area.
a) Quantitative Process Control: This is the most basic point of all that many areas of HR lose control quickly. You need to know at any time information such as:
i) How many vacancies are open?
ii) How many candidates do I have for each job?
iii) At which stage of the process is each candidate?
iv) What is my deadline to close the vacancy?
In this regard, a good management tool can help you a lot. Of course, each company of each size will have something more indicated, but here in LUZ, we have an excellent spreadsheet for selective process!
b) Mapping your Skills: A management of skills is the best way for you to ensure quality in your selection process. For each position of your company, you should know exactly what you are seeking from employees. Skills are divided into three areas:
- Knowledge: Are the skills related to the necessary knowledge, the technical knowledge required to perform a certain function.
- Ability: It is the ability to put into practice by performing an act or function, usually requiring a union of practice with the knowledge needed to be done the expected action.
- Attitude: Related to the skills necessary for relationships between other people in the company and also related to feelings and emotions, and mastery over those functions.
If you can organize your skills from the selection process, its management is more solid and integrated, because you are also able to evaluate the performance of new employees within the same criteria with a competency evaluation worksheet.
c) Rate of Rotativity of Candidates: Finally, the most important indicator of the effectiveness of its selection process is the turnover rate these new employees. Nothing indicates better problems in the selection process than the evasion of new employees below the business average. To calculate your turnover rate you need to keep a record of the indicators for your human resources areas up to date.
In this question, we have some options of spreadsheets with automatic dashboards which will help you assess how your actions are within HR.
Training and development
Turnover is a constant and growing challenge in our current job market. And while there are endless factors that can be worked out, the most important of all is to create an environment of personal and professional growth for each of your team members.
Therefore, within the training and development universe there are also 3 great functions that will define your HR performance:
a) Individual Development Plan: This is a key tool in any area of HR. From a performance evaluation by competencies, you must draw a POI for each of your team members. With this, there will be a clear path of growth that can be tied to promotions, salary increases and new challenges!
b) Training Calendar: This is the procedural challenge of maintaining an active and well-controlled training agenda for your team. This training schedule should contain data such as:
i) Which employees need to do what courses?
ii) How many courses have employees attended?
iii) Where and what is the cost of each?
iv) How am I in relation to the budget and goal of participants?
Within this area, we also have a training control worksheet which can help you organize more easily and ensure that your HR actions will work.
c) Training Effectiveness: Finally, just like in the selection process, you should measure the effectiveness of your training schedule and training. This should be done in the next performance evaluation by competencies.
So you can compare if those skills that needed development really did show improvement!
Motivation and Career
The last large area that strongly influences the quality of your staff and indicate if your HR actions are generating improvements relates to the employee's motivation and career projection within the company.
a) Quality of the Environment: The bigger your team gets, the harder it is to know and understand all the members in depth. In these situations, small dissatisfactions accumulate and the work environment can deteriorate causing greater turnover.
So, in addition to qualitatively striving to improve your environment, you need to regularly apply organizational climate research to quantitatively understand how things are.
As I pointed out previously, there are thousands of tooling options for doing this, but we also have a climate research worksheet ready for use on our site!
b) Promotions and Benefits: Another great factor for motivation and staying in a company is to know clearly the rules of the game. In other words, it is knowing how your promotions and benefits will behave in case of business growth. That is, what is your piece of cake.
For this, the main tool used is the creation of the job and salary plan of your business. In it, you should be able to structure:
i) Salaries and benefits per position
ii) Salaries and benefits by salary range (when applicable)
iii) Clear promotion and award criteria (in the case of bonuses)
In this case, we also have a worksheet and salary plan already structured that will also show you if the distribution of compensation is fair and balanced by all its hierarchical levels.
c) General Rotativity and Absenteeism: Finally, the two key quantitative indicators that will help you understand how your employees are motivated are the overall turnover and the level of absenteeism. Both indicate in an indirect way how much the staff is not willing to work due to lack of motivation and perspective of growth.
Of course, the rotation can be tracked and analyzed with the spreadsheets I indicated above and, in addition, we also have a specific one for the control of absenteeism.
We hope this post will help you understand how to evaluate your HR's actions from different perspectives. The spreadsheets that I presented throughout the post, can also be found in promotional price in our spreadsheet package for human resources!