Answer to question 1 of unit 1(HRM) Identify and explain five metrics used to evaluate HR performance The reality in our society is that the most commonly measured workforce metrics do very little to help to HR Managers and business leaders achieve real insight into maximizing their human capital investment. To make better business decisions regarding their workforce, leaders need to see the connections in their workforce data and examine comprehensive workforce topics. In order to achieve true business impact, Employers should be measuring 5 critical performance indicators:The indicators are therefore broadly categorized in the following formats. These are: 1. Talent Retention Management 2. Recruiting Effectiveness 3.
Productivity 4. Compensation and Pay Management 5. Performance Management TALENT RETENTION MANAGEMENT Talent Retention Management is an organization’s commitment to recruit, retain, and develop the most talented and superior employees available in the job market. So, talent management is a useful term when it describes an organization’s commitment to hire, manage and retain talented employees.
It comprises all f the work processes and systems that are related to retaining and developing a superior workforce. What appears to differentiate talent management focused practitioners and organizations from organizations that use terminology such as human capital management or performance management, is their focus on the manager’s role, as opposed to reliance on Human Resources, for the life cycle of an employee within an organization. Practitioners of the other two employee development and retention strategies would argue that, for example, performance management has the same set of best practices. It is just called by a different name.Talent management does give managers a significant role and responsibility in the recruitment process and in the ongoing development of and retention of superior employees. In some organizations, only top potential employees are included in the talent management system. In other companies, every employee is included in the process. Talent management is a business strategy and must be fully integrated within all of the employee related processes of the organization.
Attracting and retain talented employees, in a talent management system, is the job of every member of the organization, but especially managers who have reporting staff (talent).An effective strategy also involves the sharing of information about talented employees and their potential career paths across the organization. This enables various departments to identify available talent when opportunities are made or arise. In larger organizations, talent management requires Human Resources Information Systems (HRIS) that track the career paths of employees and manage available opportunities for talented employees. RECRUITING & EFFECTIVENESS On the other hand, selecting great staff is key for business success.Talented people who continue to develop skills and increase their value to your organization and to your customers are your most important resource. Here’s how to select and retain these people and create an environment in which they continue to thrive.
The primary elements of any plan to improve the quality of the staff you employ include improving the quality of new hires, identifying and retaining superior employees, and developing employees (especially those with high potential for growth). A performance development approach to providing job expectations and feedback will assist with this process.At the same time, we need to take a look at underperforming staff. Ask whether each individual is in the wrong job. Determine whether we have provided specific and clear requirements so the individual knows what you expect from him.
The most important outputs for the performance appraisal, from each person’s job, may not be defined or measurable in current work system. We should make the appraisal system one step harder to manage and tie the employee’s salary increase to their numeric rating. Productivity Increasing productivity is one of the most critical goals in business.Unfortunately, it’s an activity seldom accepted by HR Heads as a legitimate mandate. While most HR professionals acknowledge that their job entails establishing policy, procedures, and programs governing people management, few attempt to connect such elements to increasing employee output (volume, speed, and quality) per each dollar spent on labor costs (or as an easier to measure alternative, revenue per employee).
Bonus programs are typically enacted that keep total compensation in line with market trends, regardless of the value of work warranting incentive comp. Training tools are often secured via the lowest-cost provider method ith minimal consideration given to which provider would be most effective. Recruiting practices too are more often managed with the primary goal of minimizing cost, not enabling business capability/capacity. Regardless of the function you look at, in the typical organization, HR is more concerned with executing transactions instead of delivering productivity solutions.
COMPENSATION & PAY MANAGEMENT Would the three salespersons and the receptionist work for free? No. They would, like us all, expect something in return. We must have heard a common phrase: Give and Take.We always have to give things to people in return to what we take from them.
Compensation refers to this exchange, but in monetary terms. Compensation is the employer’s feedback for an employee’s work. Gary Dessler in his book Human Resource Management defines compensation in these words “Employee compensation refers to all forms of pay going to employees and arising from their employment. ” The phrase ‘all forms of pay’ in the definition does not include non-financial benefits, but all the direct and indirect financial compensations.
BENEFITS: Employees today are not willing to work only for the cash alone, they expect ‘extra’.This extra is known as employee benefits. Also known as fringe benefits, Employee benefits are non-financial form of compensation offered in addition to cash salary to enrich workers’ lives. Employee benefits are not performance-based, they are membership-based. Workers receive benefits regardless of their performances. Employee benefits as a whole have no direct affect on employee performance, however, inadequate benefits do contribute to low satisfaction level and increase absenteeism and turnover in employees. While deciding on the benefits package, it is essential to consider the associated costs.
ADVANTAGES OF COMPENSATION & BENEFITS 1. Job satisfaction 2. Motivation 3. Low Absenteeism 4. Low Turnover Productivity Increasing productivity is one of the most critical goals in business.
Unfortunately, it’s an activity seldom accepted by HR Heads as a legitimate mandate. While most HR professionals acknowledge that their job entails establishing policy, procedures, and programs governing people management, few attempt to connect such elements to increasing employee output (volume, speed, and quality) per each dollar spent on labor costs (or as an easier to measure alternative, revenue per employee).Bonus programs are typically enacted that keep total compensation in line with market trends, regardless of the value of work warranting incentive comp.
Training tools are often secured via the lowest-cost provider method with minimal consideration given to which provider would be most effective. Recruiting practices too are more often managed with the primary goal of minimizing cost, not enabling business capability/capacity. Regardless of the function you look at, in the typical organization, HR is more concerned with executing transactions instead of delivering productivity solutions.PERFORMANCE MANAGEMENT Much work is invested, on the front end, to improve a traditional employee appraisal process.
In fact, managers can feel as if the new process is too time consuming. Once the foundation of developmental goals is in place, however, time to administer the system decreases. Each of these steps is taken with the participation and cooperation of the employee, for best results Human Resource Management (HRM) has never been as significant as it is today. Companies want to attract, retain and motivate brains to meet objectives.Today Humans are regarded as one of every company’s assets so they need to be efficiently and effectively managed. One of the tools companies use to attract, retain and motivate its people is Compensation Management.
In this hub, I shall define compensation and benefits along with their advantages for a company and its workers. If as HR performers we believe that the combined efforts of the human resource function should positively influence the performance capability of the workforce instead of hindering it, we should understand the factors that influence performance.