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  1. #1
    Join Date
    Feb 2010
    Posts
    5

    Default Performance Management of the HR department

    Hi folks,

    I am looking into measuring the performance of the HR department (operational aspect). The department is performing well, but with the challenging times we have just been through and the road ahead, it seems more than ever that HR will need to have operational excellence. Given this need to improve beyond "good service", I am looking at measuring the performance of our HR officers (on a day-to-day basis) in order to improve customer service.

    Does anybody have any thoughts about how to measure the service of HR? I am not after HR metrics for the organisation, more specifically how efficiently the HR department operates (for example, the average time it takes to respond to a customer query). The goal is to create service standard levels not only to operate by but also to exceed in order to improve the image of HR within the business, increase customer satisfaction and as always in HR, become a player at the strategic card table of upper management.

    Would it be best to research KPI's of other organisations customer service departments? In essence, the operational HR team are a customer service team.

    Please float your ideas in response to this and add any info you think might benefit the discussion.

    I look forward to hearing from fellow members

  2. #2
    Join Date
    Feb 2010
    Location
    Sydney, NSW, Australia
    Posts
    4

    Default

    Hi raisingthestakes!

    Measuring the performance of your HR officer/s is good but I think if your focus is to improve customer service of HR, you may want to consider evaluating the concerns of your customer (employees) and conduct an interview to your customers. You can do this before doing some research outside of HR and your organization. I am pretty sure that you could get something from it and you might be surprise of the results of your interview. Generally, I call this as a HR Dialogue but sometimes I also call this as Tea Break with HR. You can be creative on the name of the program. It will also depend on the kind of customers you have because sometimes you have to create the right strategy and advertising in order to catch the attention of your customers. The following are the objectives that you may want to consider in conducting this HR program.

    • To encourage open communication among all level of employees.
    • To enhance communication system within the organization.
    • To promote harmonious relationship between employees and management.
    • To proactively determine issues arising in different departments of the company.
    • To update employees of the latest rules and regulations, systems, improvements, and other work related updates within the company.
    • To solicit suggestions and possible solutions on employee work issues / concerns.

    I am considering this HR program as proactive approach to almost any issues. If you want more details on how to conduct this program, you can just email me and I will help you set this program.

    On the other hand, with regards to your concern on setting up your service standard levels, you may want to consider minimum target, target, and outstanding target terms. For some simple task, I normally give my staff 24 hours turn around time. I hope I satisfy your query.

  3. #3
    Join Date
    Feb 2010
    Posts
    5

    Default

    Thanks Aba!

    That was a great response. I certainly like the idea of the HR dialogue.

    Over the next few weeks we will be looking at the direction that the HR department will be taking in the coming year/s.

    Thank you for your response, certainly given me plenty of food for thought.

  4. #4
    Join Date
    Mar 2010
    Location
    Melbourne
    Posts
    39

    Default

    Quote Originally Posted by raisingthestakes View Post
    Hi folks,

    I am looking into measuring the performance of the HR department (operational aspect). The department is performing well, but with the challenging times we have just been through and the road ahead, it seems more than ever that HR will need to have operational excellence. Given this need to improve beyond "good service", I am looking at measuring the performance of our HR officers (on a day-to-day basis) in order to improve customer service.
    It's fantastic that you (and your organisation) are thinking about this.

    Unfortunately with any measurement, you need data - the trick is really in collecting just enough , without placing additional strain on your staff in actually collecting it (hoping that makes sense).



    Quote Originally Posted by raisingthestakes View Post


    Would it be best to research KPI's of other organisations customer service departments? In essence, the operational HR team are a customer service team.

    That's probably not a bad idea - but you may need the tools they use to collect the data. For instance, your outward facing customer service and IT helpdesk probably have a job ticketing system which logs when calls came in, when they were looked and resolved.

    Perhaps you can look at "piggy backing" onto your corporate CRM system (much to the horror I'm sure of your staff )

    Certainly discuss with the stakeholders of the departments you service, and talk to them about their expecations on response times. At the extreme, you can set up an "internal contract" or SLA (Service Level Agreement) - these are more common for IT services, but the concept applies to any service providing area.

    The other thing you may wish to look into is the ISO9001 quality management standard - although it won't necessarily give you anything concrete, it may give you some ideas regarding setting expectations and ability to fulfill those expectaitons.

    You might also look at how your cost recovery is set up.
    Do you "charge" other departments a "fixed rate" (eg coming straight form a "General Admin" bucket of money) or is it "activity based" (other departments are charge based on services you provided).

    For my own team, I found activity based costing an "auto-motivator", as at the end of each month, I would publish how much "business" we did (i.e. recovered from other departments).

    While it might sound counterproductive, and needs to be controlled, I found:

    1. My staff became very receptive to internal customer requirements, and opportunities to "raise business" for my group (i.e. became proactive)

    2. we stopped getting spurious requests from "tyre kickers" - because they had to justify to their managers the $x recovery their cost centre got hit with from my group for consultaiton time.

    3. you can Manage your department as it's own "Non-Profit Business" (many places actually might set it up as a "Business Unit"). Remember - you're not out to make a profit - you're out there to be as close to break even as possible. It forces you to find out the "true cost" of running your department - not just people but all the infrastructure.


    Back to the KPI - the recovery amount (over or under) becomes one of your KPI's.

    Under recovery may mean:

    1. low efficiency / low utilisation (overstaffing in a broad sense, but could also mean an incorrect spread of skill sets)

    2. Unrealistic recovery rates struck with depertments you are servicg (i.e. your internal transfer cost per hour is too low). On this point, you have a benchmark - ask yourselves this: If this internal department were able to (all politics etc aside) outsource the HR function I provide to them, how much more/less would it cost them? Would they get more/less/different services from an outsourced provider than from me?

    Over recovery may mean:

    1. Understaffing, stressed staff

    2. Internal recovery rates set too high. Lower it - and make your internal customers even happier!


    Cheers,

    The Y-man

  5. #5
    Join Date
    Feb 2008
    Posts
    1

    Default

    Hi Raisingthestakes

    My experience is that HR is perceived as giving value for money when it can demonstrate a direct nexus to org strategic outcomes. ie linking employee effort and knowledge directly to Org Strategy. The concept is a simple one but takes a lot of admin effort to demonstrate. Some emeging software is distributed by Tech1, Aurion & Cambron. The later will send you a promotional CD if you ask via their WWW (we asked and it looks interesting - the price they quoted also looks reasonable???)

  6. #6
    Join Date
    May 2010
    Location
    Brisbane
    Posts
    6

    Default

    You could apply a LEAN approach...look at the different work flows ( you may even find you shorten the process's, better align work to personnel and shorten times and reduce expenses). You then come up with KPI's from this with your staff and make them part of the discussion.

    That way KPI's align to job roles/descriptions and when you think of that, it is fairly hard to appraise performance counsel someone on a department KPI if they are not subject to the work that forms that KPI.

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