Why Is Managing Human Resource Important


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Why Is Managing Human Resource Important

Why Is Managing Human Resource Important

Human Resources used to be a strictly support function in most companies. Increasingly, corporations are looking at human resources and their human capitol as vital resources that need to be strategically managed. For companies making the transition to the HR department to becoming a strategic partner, it is important to ensure that the factors for success are in place.

Measurements or Metrics for HR Activities

A strategic HR department needs to be able to analyze the HR outcomes associated with a company’s strategic objectives and understand the return on investment or ROI. In order to understand the impact to the bottom line and other strategic priorities, preferred metrics should be determined and processes to collect the necessary data should be created. Some examples of HR metrics include:

  • Employee turnover rates
  • Absentee rates
  • Retirement figures
  • New hire/recruitment figures
  • Exit interview stats
  • Performance measures
  • Salary comparisons
  • Employee job satisfaction statistics
  • Supervisor and executive satisfaction with HR outcomes
  • Staff totals (head counts)
  • Supervisor to staff ratios

Establish a Reporting and Communication Plan

While establishing metrics to help provide the necessary data is important, it is equally as important to make sure the data is distributed to those that need it. Lessons can not be learned from successes and failures if the results from the metrics are not communicated. An important skill of strategic HR leaders is to be able to convey the information in a report that clearly outlines the implications of the results and includes monthly, quarterly and annual data produced by using these metrics. Ensuring there is someone on the HR team that has superior document production abilities such as creating tables and graphs to accurately describe the results visually is a good strategy.