Hi Everyone,

I've been measuring the performance of our company in terms of turnover, hiring, attendance, medical leaves, etc. for years now. But what I would truly like to know is, how do we measure the performance of the HR Dept? How do we assess the quality of the department and our performance in comparison to the performance of the human capital?

I would love to hear your views on this. Thank you.

From Malaysia, Penang
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Dear Kerayzee,

You could have searched this forum. Anyway, check the following links. These are my replies to the previous posts:
- https://www.citehr.com/385477-meetin...ml#post1766208
- https://www.citehr.com/328790-hr-sta...ml#post1503992

Ok...

Dinesh V Divekar
"Beware of false knowledge; it is more dangerous than ignorance."

From India, Bangalore
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Dear Mr. Dinesh, Thanks you very much, very good information share by you also have you formula related above point? Please share with us.. Thanks, Regards, J.N.Modi
From India, New Delhi
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Hi,

Please send out the 'Employment Satisfaction Survey Questionnaire' to all employees including top executives, middle-level employees, staff, and workers in a single page with about 10-12 questions. This questionnaire can be published on your company intranet site. Encourage your employees to answer these questions without mentioning their employee ID or name. Analyze the results and determine the Employee Satisfaction Index on a 1-4 scale. A rating of 1 signifies being highly satisfied, 2 denotes needs improvement, 3 indicates being neither satisfied nor unsatisfied, and 4 signifies not being satisfied at all, etc.

Your analysis should identify the root causes of employee dissatisfaction or satisfaction. Share this analysis with your employees and request more feedback during the publication of the results. While top executives may be present during such sessions, it is crucial that the top executive present is a Change Manager who can provide appropriate feedback on employee feelings, poor pay, allowances, etc., to higher management and implement corrective actions.

If you continue this exercise every six months, the results are likely to favor the company.

All the best,

Regards,

Harirajan

From India, Mumbai
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Dear Mr. Dinesh and Mr. Harirajan, and everyone else,

Thank you very much for your views. I do agree on the satisfaction survey. But as for the Department itself, how do we measure the quality of it? The normal KPIs that we usually measure are because we have the data with us. As for the effectiveness of the department itself, how do we measure it? I would love to hear from your experiences.

Thank you :)

From Malaysia, Penang
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It is very simple to measure the effectiveness of the HR Department. I am providing below a few KPIs for the HR Department that I have drawn from my own three decades of experience in different manufacturing and IT industries.

In the IT industry, HR is given a more important role because they recruit a large number of people in batches of 20, 50, 100, 200, etc. In manufacturing industries, the number of such manpower requirements is less, and therefore the HR department is often seen as one functional department dealing with more workers and staff-related issues like welfare, absenteeism, and overtime. However, the below KPIs are the same for both these industries. These KPIs may seem trivial, but I believe they play a very important role in retaining people in the organization for a longer period.

1. Quality of food provided in the canteen
2. Time taken by the HR department for the transfer of PF from the earlier organization
3. Settlement of PF for retired/retrenched employees
4. Time taken to settle Medi-claim/Insurance claims towards accidents/hospitalization, etc.
5. Night shift facilities/allowances
6. Timely distribution of safety shoes/company uniform/helmet, etc.
7. HR representatives visiting workers admitted to hospitals due to accident/illness at least 2-3 times
8. Attending condolences in the case of the death of kith and kin of employees
9. Marriage/Special gift for newly weds/newborns for employees of the company
10. Special increment for outstanding performers, especially young engineers during any special day like Independence Day, etc.
11. Flexi working hours/working from home option for 1-2 days in a month
12. Scholarship for kids from company employees
13. Arranging a picnic by the HR department for all employees at least two times a year
14. Rotation of managers from one department to another department every two years. For example, the Quality Head can take the Production Head role, etc. Similarly, rotation of staff from one department to another department. Persons working at QC can take up Production Role. Networking engineers can take the DBA role. IT infrastructure personnel can do software development, etc. This will eliminate all sorts of office politics and favoritism.
15. Software for 360-degree open appraisal on the company intranet site if this is not available
16. Deputation of persons for outside training from every department and publication of the training calendar planned vs. actual

The list is endless, and the more creative and transparent you are, the better the climate and employee satisfaction level in the company. After all, you need a certain budget to initiate and carry out such tasks on a regular basis every year, which can be discussed with the appropriate senior person of the company like the factory head/CEO, etc.

Regards,

Harirajan

From India, Mumbai
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Hi Mr. Harirajan,

Thank you very much for your knowledge. I absolutely see what you are trying to portray with all the items listed above, and I do not think that any of them are silly :) Thank you once again, and I shall learn from the guidance from all of you who have shared here. Have a great week.

Janice

From Malaysia, Penang
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Dear Sir,

The HR Department is supporting the Management in evaluating performance in various areas such as Manpower Supply, Employment, effective utilization of resources, Machines stopped due to lack of manpower, Absenteeism, Leaves availed, Man Hours engaged in O.T., and Stoppages of work caused by unrest or petty issues.

D. Gurumurthy
LL.HR & IR Consultant

From India, Hyderabad
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Thank you for your view, Mr. D. Gurumurthy,

In our company, we would like to have all departments significant. No doubt, HR is there to support everyone else. However, if we view the department on its own, we would want it to have a certain quality in it. So I'm trying to get everyone's view on how to make the department itself better. I hope you are able to see where I am coming from.

Thank you.

Janice

From Malaysia, Penang
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