Use and calculation of KPIs to evaluate the performance of specialists and departments
KPI is an abbreviation from English. Key Performance Indicators – key performance indicators. With their help, you can evaluate the activities of both individual structural units and groups, as well as specialists. They depend on the goals that the company faces at the moment.
All KPI indicators used at the enterprise must have a clear definition and calculation procedure. All this must be stipulated in a local regulatory act, which is approved by the general director of the company. Such a document should contain formulas and examples by which one or another KPI is calculated. As a rule, the period for which the assessment is made is a year, after which calculations are made and it is determined how the indicators characteristic of a given position have changed. Additional payments depend on how different they are from the planned ones.
Experts recommend limiting the number of such indicators to 3-4, but they should include both personal and general indicators that take into account the work of the entire structural unit/company.
The choice of a set of KPIs for assessing the effectiveness of the HR director will depend on what the responsibilities of the employee holding the position are. At different enterprises, the tasks facing the HR director may differ.
Requirements for HR Director
To perform the entire list of tasks efficiently, you need to be a good specialist with developed multitasking. Let's figure out what knowledge and skills are needed to work effectively.
experience
An HR manager does not need to thoroughly understand the specifics of the company's products. For example, if an organization produces dairy products, it is not so important for the HR director to be able to distinguish between types of products. His task is to find a person who understands this. Of course, the ideal HR director has previously worked at least in a related field. But the number of personnel, departments and branches is more important.
Education
A good HR director is a person who knows how to optimize internal processes in an organization. His education can be either humanitarian or technical. An applicant who studied in a related specialty has advantages, but a candidate with a secondary education may well be superior in personal and organizational qualities.
Professional quality
Professional qualifications depend on experience and education. But many of them are a symbiosis of personal and acquired characteristics. What professional qualities are needed:
- competent speech and writing;
- be a leader;
- explain;
- train;
- work in a team;
- quickly process large amounts of information;
- make decisions and take responsibility for them.
Personal qualities
For a manager, especially one who works with personnel, personal qualities are most important. The ability to conduct a conversation, understanding psychology - that’s what’s important. Without this you cannot become a professional in this field.
What personal qualities should an HR director have:
- flexibility, ability to get out of difficult situations;
- high organization;
- stress resistance;
- delicacy;
- politeness.
KPI for assessing the “Recruitment” block
To assess the effectiveness of staff attraction efforts, you can use the following indicators:
- average time to fill vacant positions;
- compliance with the budget allocated for the selection of candidates;
- c the ratio of employees who successfully completed the probationary period to those who did not;
- level of staff turnover, etc.
You can evaluate how the system for searching and attracting highly qualified specialists works using the following indicators:
- the number of top managers attracted to the company and working in it;
- the ratio of the number of attracted “stars” to the total number of highly qualified professionals;
- the number of top managers raised in the personnel reserve of the company itself;
- Conducting professional examinations to confirm the high class of the company’s management team.
How to become an HR director
In order to become a leader, it is not enough just to learn. You need to constantly work on your skills and, of course, set the right goals. Let's talk about these moments.
Where to study
The specialty of head of the personnel department is in demand and prestigious. Where do they study to become such specialists? There are many development paths for an HR manager:
- Higher education
Many universities have specialized specialties from which you can begin your path to the position of director of the HR department. Academic education provides a good foundation, but is not always applicable in practice. This area is not yet sufficiently developed, so information is often divorced from reality.
- Training courses
In every major city there is a decent number of courses that will help you master the necessary base. They provide deeper knowledge, and many participants after them easily find work in a starting position. Such training provides a comprehensive vision of the roles and principles of HR work.
- Trainings, seminars, conferences
This format is suitable for those who already have basic information. Serves mostly to deepen knowledge, expand horizons, and study new trends. Speakers share their “keys”, discoveries that are easy to test in practice.
- Online training
Online courses can provide a good basis, this is especially true for residents of small cities where there are no full-fledged face-to-face training programs. It takes less time, no need to waste time on the road.
KPI for “Head of Human Resources”
The effectiveness of personnel records management and accounting can be characterized using one or more of the following indicators:
- penalties imposed by the labor inspectorate;
- provision of job descriptions to employees;
- the period of time required to fully register a new employee;
- speed of providing information about an employee upon management requests.
- monetary penalties imposed in court as a result of illegal dismissals;
- speed of preparing a package of documents for retirement or dismissal;
- the amount of penalties or lost profits;
- the ratio of employees dissatisfied with the dismissal process to the total number of dismissed employees.
Current tasks of the HR service and assessment of the effectiveness of its work
Over the past two decades, the specifics of the activities of an HR specialist have undergone significant metamorphoses, associated primarily with the reorientation of employers to the interests and needs of both potential and existing employees. It turned out that complex work with personnel, the formation of a team of professionals, its motivation and retention in the company requires qualitatively new approaches and completely different qualifications of performers. It is also significant that the contribution of the HR department to the company’s business indicators today can be assessed according to very specific, “tangible” parameters.
Olga Vodianova , HR Director of the ACIG Group of Companies :
The heart is the true lever of all great things.
Ludwig van Beethoven
At all times, the role of the HR department has been based on three pillars:
