Several criteria and organisational data can be included in the evidential report that highlights the HR function’s contribution to the company’s success and development. It is vital to consider the basic factors that contribute to the employees’ satisfaction with HR managers’ performance. They include providing good advice, supporting individuals in the time of change or during the process of transition, and managing challenging situations at the workplace. The report on the HR function will consider both the process criteria, outlining the functions that have been performed appropriately, and the output criteria, noting the effectiveness of the outcomes.
HR effectiveness can be evaluated from various perspectives and criteria. For instance, the quantitative ones may include organisational, employee behaviour, and HR service levels and outcomes. The organisational criteria may include added value per employee, sales and profit per employee, and costs per employee. The factors associated with workers’ behaviour may include turnover rates, retention rates, accident rates, and a number of reported disputes or conflicts. Finally, HR service levels can be evaluated from the perspective of the ratio of acceptance of offers made, time to respond to applicants, measurable improvements in the company’s performance due to the HR function. In addition, the achievement of specific goals can also serve as a factor determining HR managers’ performance.
Benchmarking data can also be utilised to analyse whether the HR department contributes to the company’s success. In the report, the data from similar organisations can be presented and compared to the information from the evaluated company. For instance, direct comparisons can be made using quantified performance data, such as the changes in the turnover rate for a particular period. The HR scorecard is one of the tools that can be used, too. The criteria that can be evaluated within this tool include HR managers’ administrative expertise, strategy execution, employee advocacy, level of communicative skills, existing reward systems, and levels of integration and differentiation. Moreover, several HR deliverables can also be analysed, including the manager’s technical knowledge, employees’ mindset, and staff members’ behaviour in general. These particular data should be selected for an evaluation because they affect the company’s performance, the quality of products and services, and customers’ loyalty.
KPIs can also be a part of the evaluation process, as they can provide a multifaceted perspective on the HR function. The criteria that can be included in KPIs are the absence rate and cost, employee satisfaction, engagement, and innovation indexes, along with the productivity rate, internal promotion rate, and voluntary and involuntary turnover rates. Moreover, 90-day quit rate or 365-day quit rate can also be included in KPIs. Finally, it is possible to utilise the Balanced Scorecard method to analyse HR managers’ contributions. This tool can evaluate workforce mindset and values, employees’ competencies, behaviours, and achievements.
All of the criteria presented above can be displayed in the report in the form of tables and graphs to make it clearer and more organised. Not all of them should be included in the same report; it may be more feasible to combine some of them, such as the Balanced Scorecard and HR scorecard, in one report and utilise the other tools in the next ones. After the data is analysed with the help of the tools and strategies outlined above, the results of the evaluation can be presented under the graphs or tables or in a separate section. It is vital to provide a clear explanation of the information because the outcomes of the analysis are important for both employees and employers, as they reveal the positive and negative aspects of HR performance. In addition, it may also be important to present the results of the evaluations conducted within the past years to help HR managers and the company’s leadership staff to see whether there is progress in the department’s operations.