As we move into the fourth quarter
one idea for the Human Resources department is to provide an annual Key
Indicators Report to the leadership team.
This report would summarize the Human Resource activities over the past
year along with establishing goals and objectives for the organization for the
next 12 months. In essence, this is a
performance review on the function. What
would the sections of the Key Indicators Report include?
Benefits
Plans
Each year HR departments examine
the benefit plans to ensure that they are at market and are meeting the needs
of the employees and their eligible dependents.
This section of the report would include the costs associated the each
benefit and the changes that were implemented.
Typically the benefits offered by the company are often one of the key
drivers of retention. With a detailed
analysis of the plans offered, along with the expenses associated with each
plan, management can be in a better position to determine if the benefits are
in alignment with the company’s long term strategy. Additional examples would include the dollars
associated with the 401(k) employer match and soft benefits such as a gym
membership or an EAP.
Compensation
Pay and rewards are key
elements for also retaining staff. Each
year HR department evaluate the salary ranges, job descriptions, pay and
incentive plans. As part of a Key
Indicators Report this section would evaluate the merit increase program to
determine if those employees that receive the highest performance ratings are
also receiving the largest percent increases.
A simple matrix evaluating pay and performance can be created to
summarize the performance process correlating that with pay. Additional examples to include in this
section with be a summary of any changes to the incentive plans, any
modifications to the performance review document or process as well as
examining the merit increase program to project future labor expense.
Talent
Management
Turnover is very expensive for
companies today; particularly in a tight job market. As part of the Key Indicators Report this
section would evaluate the number of employment requisitions filled over the
past 12 months and the source for finding talent, any associated expenses
filling positions as part of a search process and the use of temporary services. This evaluation will also assist management in
finding how many days it takes to replace a position and identify if there are
any trends in with respect to turnover.
Leadership Development
Employee development is
critical in today’s job market and this section of the report should include
the training programs offered by the company, the number of employees that
participated in company-sponsored training programs and the outcomes as a result
of allowing employees to participate in professional development. Employees who
enjoy their job and are satisfied with their career are more engaged and
aligned with the business. Engaged
employees who believe that the company is willing to invest in their development
will also remain at the organization longer which can result in less turnover. Elements of this section of the report would
include an analysis of the programs offered, the costs associated with the
training and the needs analysis that was conducted in order to determine what
programs would be of benefit to the staff.
Finally, the report should be
presented to the leadership team in person to stress the importance of the
Human Resources function over the past fiscal year as well as looking to the future. This opportunity to review past
accomplishments can also lead into a discussion of the future budget, programs
and additional headcount to support the needs of the organization.