How To Measure HR Productivity

INTRODUCTION 

HR productivity is dependent and is directly proportional to employee performance. Once a candidate is hired for a particular job, after being assessed to be the most suitable person to fill in for the job, his/her performance is evaluated to ensure whether the higher has been successfully effective or not. A successfully effective hire automatically translates to productive employee performance. Employee productivity not only ensures profitability for the organization but also is a prerequisite for the growth of the organization as a whole. The role of the HR department of the organization encompasses functions not only limited to recruiting, hiring, and onboarding but also assessing, evaluating, and measuring employee performance to ensure correct decision making. 

HR PRODUCTIVITY 

HR productivity also sometimes referred to as workforce productivity is the evaluation of an employee’s work to decide upon whether he or she is effective and efficient enough. Productivity is abstract and is subjected to individuals’ perspectives, that’s ideally it cannot be measured. But to keep a track of the output of an employee at a specific time it is important to measure, assess and evaluate the amount of work and the accuracy of the work done by an employee. HR productivity is also known as employee productivity because HR stands for human resources and the human resources of an organization are the employees who work for the organization. Employee productivity is measured by keeping a track of the output by every employee (e.g the number of projects handled by an employee in a month). The precision, accuracy, and effectiveness of an employee’s performance have a direct reflection on employee productivity. Measuring HR productivity gives the employer an idea about the efficiency of the employees for a task or project. And for measuring HR productivity the employer needs to collect data about the employee performance demarcating their KPIs. 

FUNCTIONS OF HR (FOR MEASURING HR PRODUCTIVITY)

  1. Collecting data about the output generated by every employee through a tracker mode
  2. Having a regular check on the employee performance
  3. Motivating employees to work more efficiently
  4. Implementing incentives and lucrative reward system for the employees
  5. having clear communication to avoid any kind of confusion or delay in work, lack of productivity
  6. Planning, organizing, controlling, and coordinating other HR functions like recruitment in such a way to ensure a smooth workflow and effective employee performance
  7. Measuring employee KPIs because the performance indicator is going to give a fair idea about the HR productivity measurement.

KEY PERFORMANCE INDICATOR (KPI)

Key performance indicators help businesses to staff outline and reach their goals. KPIs are a style of performance measure and are usually used at an operational level to guide the business towards pre-determined goals and at the worker’s appraisal level to facilitate staff stretch themselves and have the end goal in sight.

THE INDICATORS 

ABSENCE RATE: The absence rate within the organization is typically calculated by dividing the range of operating days within which the worker was absent by their total number of operating days.

ABSENCE COST: The total value of absence is calculated by counting worker pay, as well as the value of managing absent, and substitution costs.

BENEFITS SATISFACTION: Satisfaction with employment advantages is typically measured through a worker engagement survey. These are often relevant to cut back the turnover rate.

EMPLOYEE PRODUCTIVITY RATE: Although this metric is difficult to calculate, it says one thing regarding the capability of growth in terms of the production of human capital.

EMPLOYEE SATISFACTION INDEX: Employee satisfaction is measured through worker angle and engagement surveys. Discontentedness is a vital cause of the employee turnover rate.

INTERNAL PROMOTION RATE: This KPI is measured by dividing the variety of senior functions that were procured through internal promotion by the whole number of senior positions procured. Internal hires are usually to hurry up quicker, scale back the danger of a poor recruit, and keep them longer within the job.

HOW TO INCREASE HR PRODUCTIVITY

  • Management (Training) By Objective 

Every organization has a certain objective which all departments of the organization comply with and work towards achieving. Hence every hire should be effective enough to produce productive output which helps the organization achieve its objectives. Thus it is very important to evaluate the employee’s performance whether the employee’s actions are aiding the organization to achieve its goals and targets. Once the employee evaluation is done apt training could be given to the employee to brush up on his or her skills for better and much productive performance.

  • Motivation For Achieving Benchmarks and Targets 

Every employee of an organization is assigned to do a particular number of tasks in a job, and his or her productivity is assessed by the rate at which he or she finishes the assigned tasks. Often employees are given particular targets to reach in a stipulated time frame which gets the employees to work with full zeal to finish the target. An organization could also opt for a reward system for the employee who finishes the maximum number of targets in the least time frame. This can also work as an added motivation for the employees to work in a much efficient and productive manner with more profitable results.

  • Employee Appraisal

An effective appraisal system can contribute to the competitive advantage of the organization by improving employee performance in two ways – by directing employee behaviour towards organizational goals and by monitoring that behaviour to make sure the employee performance is productive enough that the goals are met. Often, HR departments of organizations implement employee appraisal programs to boost the motivation level of the employees which leads to more productivity as the employees become more focused and committed to their work.

  • Employee Engagement

When an employee is engaged in their work he or she would be willing to go above and beyond what would typically be expected in his or her role, this is employee engagement. engagement is the extent to which employees are willing to go beyond the minimum requirements of the rules to provide additional energy or to advocate for their organization as a great place to work. Employee engagement is a strong predictor of employee retention and employee performance which gives an idea about the level of effectiveness and productivity maintained in the organization and the strong willingness towards goal achievement.

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