HR Scorecard

Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)

Professor
Al-Qurmoshi Institute of Business Management,
Hyderabad - 500005
 HR Scorecard
Measures HR Deliverables and objectives
Quantitatively demonstrate HR’s contribution to
firm’s financial results and profitability
Measure the degree of alignment between business
strategy and HR deliverables
HR Scorecard links the things people do with the
strategy of the firm.
Development of HR Scorecard
The development of an HR Scorecard must be done
with four perspectives in mind as follows:
A financial perspective to address strategies that
satisfy customers
A customer perspective that asks what customer want
An internal perspective that addresses the stated
desires of customers and designs processes consistent
with those desire learning perspective that taken into
account .
HR employees can implement steps to align HR goals
with the overall company mission, vision and business
objectives.
 HR Scorecard Implementation
It has seven steps model:
Clarify the business strategy
Develop HR Architecture
Create a strategy map of the firm
Business Indicators
Results
Identify HR Deliverables in the map
Align HR Architecture with HR Deliverables
Design HR Scorecard
Execute/Implement
 HR Architecture
The HR function (services)
The HR management system
Supporting policies and practices such as
 Create links between promotions and competencies
 Provide skills training

 Attract and retain high performers

Strategic Employee Behaviours

 HR Strategy Map
Drive Long term
Shareholder Value

Enhance ROI of HR Enhance Employee

Financial
Strategic Initiatives Productivity

Enhance “Internal
Internal Create Positive
Customer” (Employee)
Customers Work Environment
Satisfaction

Apply Excellent Develop Strategic Implement Best Optimize

HR Internal Recruitment Talent Management Performance
Employee
Process Process Practices Management System
Competencies

Learning Develop Internal HR Deploy HRIS System

Capabilities
 HR Scorecard

Strategic Objectives Key Performance Indicators

Drive Long term

• Shareholder value
Shareholder Value • Shareholder value growth

• ROI of HR Strategic Programs

Enhance ROI of HR
Strategic Initiatives
and Initiatives

Enhance Employee • Profit per Employee

Productivity • Revenue per Employee
 HR Scorecard

Strategic Objectives Key Performance Indicators

Create Positive • Ranking in “Best Place to Work Annual

Work Environment Survey” (conducted by Fortune
Magazine)
• % of Employee Turn Over

Enhance “Internal • Employee Satisfaction Index

Customer” (Employee) • Employee stability
Satisfaction • Improved Process cycle times
 HR Scorecard

Strategic Objectives Key Performance Indicators

Apply Excellent • Average lead time to recruit employees

Recruitment Process • Recruiting cost per employee
• Performance of New Recruits during the
First Two Years of Employment

• Average Lead Time to Develop Strategic

Develop Strategic Competencies
Competencies
• Average Lead Time to Close Strategic
Competencies Gap
• % of Strategic Competencies Available
within the Organization
 HR Scorecard

Strategic Objectives Key Performance Indicators

• Number of Qualified Talents per

Implement Best Talent
Strategic Positions
Management Practices
• Progress of Talent Development Plan
(actual vs. plan)
• % of Senior Managers who Have Been
Promoted Internally

• Average Competency Assessment

Optimize Performance
Scores
Management System
• Number of Performance Feedback
Session Conducted per Year
 HR Scorecard

Strategic Objectives Key Performance Indicators

• % of HR Employees who Develop

Develop Internal HR
Capabilities Individual Development Plan
• % of HR Employees who Fully
Execute Their Individual
Development Plan

• Progress of HR Portal
Deploy HRIS System Implementation (actual vs. plan)
• Accuracy Level of HR Database