HR performance measures and organizational success

It's axiomatic that all organizational tasks are done by people; and therefore a committed and capable workforce is critical to organizational success.

So HR performance measures should take this reality into account, and assess how well HR practices result in desirable HR outcomes.

This is often easier in the private sector than in the public sector. Many factors such as incentive pay, promotions, recruitment, and the organization of work are constrained by public sector policies or labour contracts.

Nevertheless, there are valid ways to measure Human Resources performance drivers and outcomes that apply to any organization. Some examples:

  • Training. Adequate employee training is a driver of both employee satisfaction and organizational success. Investment in training (as measured by dollars spent, hours, number of courses) for both new employees - e.g. less than 1 year - and experienced employees is a predictor of organizational success.

  • Percentage of jobs filled from within. If the organization has a good handle on succession planning and a robust employee development plan, this should be reflected in internal employees receiving regular promotions.

  • Employees' understanding of their role. If the organization's strategy is clearly articulated and well understood throughout the organization, employees should understand how his or her job contributes to the success of that strategy.

  • Decision-making style. The extent to which an organization's decision-making style is participatory in a leading indicator of employee satisfaction.

Unlike private enterprise, the 'bottom line' is NOT the bottom line when evaluating public sector organizations. But investment in people is still a driver of success. Your HR performance measures should reflect this fact.

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For further reading . . .

Best Practices in Public Sector Performance Measurement

Free Guide to Public Sector Performance Measurement

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