In the business world managing your human resources is essential to remaining competitive in almost any industry.
This responsibility falls upon the shoulders of the chief executives and managers of the company. For an executive to stay on top of this responsibility it is important that they utilize an HR portal of some kind, most frequently managers make use of an HR scorecard. An HR scorecard is also commonly referred to as a HR balanced scorecard.
Are you unsure what is meant by the HR scorecard? Let me explain what an HR scorecard entails. Any good business will typically track and record human resources metrics. The mere compiling of the data and the metrics does not do the company much good if the information is never analyzed and used in the decision making process. It is akin to tracking expenses but never identifying costs that can be controlled and acting on those observations. A company that tracks human resources metrics needs a method for viewing and analyzing this information. This is where an HR portal comes into view. Most companies employ what is known as an HR scorecard as their HR portal. An HR scorecard presents the human resources metrics in a manageable and understandable manner, normally allowing managers to view information as a sort of dashboard or gateway to their mounds of data.
Like a report card in school breaks down your grades by subject, the HR scorecard will break down the vital human resources data by area and show you the key stats or “scores” that warrant the your attention and should drive your decisions. An HR balanced scorecard essentially provides the same sort of information, allowing executives and managers the opportunity to view the important metrics and key performance indicators that pertain to human resources.
In its simplest form an HR balanced scorecard serves as a sort of summary or overview report of the current status of your firm’s human resources. As such, an HR scorecard can lead managers to making the right decisions as they pertain to human resources. Since an HR scorecard can offer a simple yet powerful overview of the key human resources metrics managers and executives find it easy to identify the key performance indicators.
Once they have identified the key performance indicator management will find itself in a much better position to act on that information and make decisions going forward that are truly in the best interest of the company.
Many firm’s most valuable assets are their people, and thus one can hardly afford to ignore the human resources information and data compiled. The best way to extract value from this information is utilize an HR balanced scorecard to assist you in the decision making process.
Adam Smith is an information author for 10X Marketing. To learn more about a balanced scorecard or a balanced scorecard software solution please visit Corda.com
