Performance Management of HR: Mentoring the mentors

A Blogpost from HCMC

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Of late, Performance Management of HR itself seems to be a frequently asked question of FAQs on HR. Not surprising, since today’s Human Resource Managers are business drivers in many successful companies. The role transformation has made performance measurement of the HR a critical requirement.

This discussion looks at:

  • Value of Performance Measurement
  • Performance Measurement Methodology
  • And how we help in Performance Management

Advantages of HR Performance Management:

Human Resource Managers contribute significantly and enable the business to achieve accomplish its goals. They are mentors and change people into human capital. Every improvement in this function spreads deeply and widely across the organization.

By energizing the HR, you can achieve these 10 most valued benefits.

  1. Stimulate the entire the organization,
  2. Improve talent level and motivation
  3. Improve retention level
  4. See people contributing that extra bit,
  5. Cut down time-to-hire,
  6. Cut down hiring costs,
  7. Cut down overall business costs as productivity increases
  8. Improve corporate image as a preferred employer
  9. Improve corporate image as a valuable member of the community
  10. Set the bar high and achieve far better results in terms of profitability

There are no quick fixes to achieve better performance management but the process is not to difficult. It needs but sustained implementation of a planned strategy.

Performance Measurement Methodology:

The key to performance management is devising a strategic mechanism for setting objectives, developing the right metrics, reviewing the results (most objectively please) and this is the crucial step, taking appropriate corrective measures. It is easy to appreciate that the methodology has to be closely customized for your business segment, business environment and business objectives.

Devising KPAs, KRAs and KPIs:

First, set the Key Performance Areas (KPAs) for the HR. Align the KPAs with your overall strategy, which comes from:

  • Vision statement
  • Mission statement
  • Corporate objectives
  • Corporate strategy
  • Strategy related to business units/ departments

It would be ideal to set the KPAS in tune with your budget year.

Now move on to define Key Result Areas (KRAs). The core expectations from HRM are

  • Workforce planning
  • Recruitment
  • Employee Relocation/ Corporate Mobility Management
  • Diversity management
  • Performance Management (of other functional areas)
  • Reward Management
  • Learning and Development
  • Workplace Management
  • Safety and health at workplace
  • Industrial relations
  • Automating HR operations and Implementing IT for HRM
  • Legal Compliance (Laws related to labor, immigration, environment etc.)

Develop KPIs for each KRA and move on to metrics.

Performance Measurement:

Performance Measurement or performance metrics is the crux of Performance Management. Evaluation based on loosely defined metrics would not deliver any benefits at all. And, go a step forward from the routine and add qualitative metrics that give in-depth insight. Learning and development is an easy example; instead of limiting your measurement to the number of employee training programs conducted, assess how the L&D program has helped to increase productivity or how it contributed to re-skilling the workforce.

Define your Performance Metrics to facilitate analysis from four perspectives: Strategic, financial, operational, and customer experience. For the HR the customers are mainly internal, the employees.

An Example is always helpful:

An example would help in appreciating the full dimension of Performance Management. Consider Employee Relocation, an activity of major interest in markets like the UAE.

Corporate Objective – Scaling up stores operation needs 25 additional employees

The KRA in this case is to organize Employee Relocation for the 25 new hires.

KPI 1- Reduce time to relocate by 10 days. KPI 2- Reduce costs by 5%.

You could obtain a feedback from the employees after completing the relocation to assess satisfaction level. This tells you about the performance of the outsourced service provider who has organized the relocation and helps you to manage future relocations better.

Our Role in Performance Management:

We are Human Capital Management Consultancy (HCMC) based strategically in Dubai and our core business is transforming Human Resources into Human Capital. Let us admit it: we simply love every aspect of HR Management. That passion has brought keener insight and better-honed expertise to our professionals.

HCMC a HR Consultancy  UAE deliver Performance Management solutions customized for the UAE. The cost-effective solutions and methodology are developed over years of practice in the region. Most importantly, we bring that much needed objectivity. Wish to know more? Just Contact Us.

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