What indicators should be defined to measure the performance of an HR strategy?

Steering of the HR function

With regard to the management of the HR function in the broad sense, we can mention the ratio of HR-related expenses. Performance indicators such as resignation, absenteeism or strike rates, or criteria related to recruitment or employer brand, can also be used to measure employee satisfaction.

Talent acquisition

When it comes to talent acquisition, channel effectiveness is an interesting criterion to exploit. This allows us to know where the candidates come from. The channels are more and more numerous since the arrival of social networks and specialized sites. The cost per hire is also an indicator to consider: it corresponds to the entire recruitment process and can include various costs such as those related to advertising on social networks or presence in job fairs.

Workforce planning

In terms of planning for the skills needed by the company in the near future, one can mention the percentage of strategic positions that are open, the percentage of positions that currently have a skills gap to fill, or the percentage of people who are likely to retire within the next five years.

Talent Management

For talent management, performance can be assessed by measuring employee turnover, internal mobility rates, and the number of career opportunities offered.

Compensation

In terms of performance management, we can mention the turnover rate of high performers by considering the number of people who have left the company in a particular period. We can also consider the difference between the compensation of high performers and other performance categories.

Performance Management

In terms of performance management, we can mention the turnover rate of high performers by considering the number of people who have left the company in a particular period. We can also consider the difference between the compensation of high performers and other performance categories.

Learning and development

Related to human capital is skill attainment, which measures a learner’s level of knowledge before and after training. We can also address the notion of workplace application, which is used to measure the impact of skills acquired in the field, the idea being to know if the knowledge and skills are actually used in order to improve the relevance of a training and its suitability for a job.

Business intelligence and social controlling

In terms of assessing the social climate in the context of
social management control
The number of people leaving the organization each year, the average time an employee spends in the company, and the ratio of resignations to departures can be mentioned.

Also read in our "HR strategy management tools" file:

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• How to conduct a managerial innovation process?
• CSR as a leverage for performance and innovation
• 7 HR trends for 2023
• From "customer centric" to "employee centric
• Employee experience: why are HR and employees not aligned?
• What are the major issues facing HRDs today?
• Organization, talent management, recruitment: priority HR projects?
• Human resources management: what HR strategies for the future?
• Best practices to manage your HR strategy in an optimal way
• The different HR management tools to carry out your HR strategy
• HRIS software: the different areas of intervention for the HR function
• How to convince your management to invest in an HRIS tool?
• Is it necessary to be accompanied in the management of an HR strategy?
• What indicators should be defined to measure the performance of an HR strategy?
• HR strategy: how to achieve effective HR reporting?
• Who should drive HR projects in the company?
• Setting up a working group for an HR project: who should be involved?