Developing HR Scorecard

 The HR balanced scorecard is a tool that allows you to track the performance of
your human resources team.
 HR scorecard provides the HR department with a comprehensive overview of all
HR metrics at one glance. It makes it very easy for you to compare departments
or even individual employees. And since it’s based on accurate data, it will give
you valuable insight into how any department or employee is performing, when
compared to management’s strategic goals, objectives, and benchmarks.

There are five steps to create an HR scorecard:

 Create an HR strategy map.
 Identify HR deliverables.
 Creation of HR policies, processes, and practices.
 Aligning HR systems.
 Creating HR efficiencies.
When Would You Use an HR Scorecard?
HR managers and human resource management can use the
tool to:
Evaluate and measure the effectiveness of human resource
function and allocate budget towards HR initiatives
Give clear insights into which human resources initiatives
should be prioritized, and set realistic human resources
targets
Determine who needs support from HR and make informed
decisions regarding resource allocation
 Developing HR Analytics
HR analytics is the gathering, analyzing and reporting of data that
surrounds the management of human resources. It is the method of
getting a better understanding of the people within an organization
and how well the human resources team is performing. The analysis of
this data can be a huge help to giving an organization the right
direction to move forward in order to maximize payroll, benefits, its
ability to hire or keep employees and more.
HR analytics is considered to be a systematic identification and
analysis of the people drivers of any specific business outcomes. In
layman’s terms, that means that HR analytics measures the successes
and failures of how well the company is performing when it comes to
its employees. Depending on the organization, HR analytics may also
be referred to as workforce analytics, talent analytics or people
analytics.
 The Importance of HR Analytics
1. Data-driven decision-making
2. Predictive insights
3. Talent acquisition and recruitment
4. Employee engagement and retention
5. Performance management
6. Learning and development
7. Diversity and inclusion
8. Cost optimization
9. Aligning HR with business strategy
10. Mitigating risks and compliance
 Analytics Culture
 Culture analytics has made its foray into HR technology as a key product to help organizations get a
sense of and develop workplace culture. As a result, investors and startups are also making inroads
into this interesting space.
 In the HR context, culture analytics refers to the science of using information around workplace culture to
generate actionable insights. This implies the use of technologies to measure cultural information, powerful
systems to process these datasets, and smart algorithms to give HR managers real actionables.
 Benefits of Culture Analytics

For HR, data can prove key to better decision-making in every sphere. In the case of
company culture as well, data can help quantify subjective responses and sentiment,
allowing HR to closely monitor their workforce.
1. Better hiring
2. Accurate skills measurement
3. Smarter talent management
 Using Analytics for Better Decision-Making
To make decisions based on data analytics, it is necessary to ensure that the available
information is well organized, accurate, and easily interpretable.
The first step is to create a standard procedure for integrating data across different
sources from both inside and outside the organization.
After automating this first phase, it is time to monitor and analyze the values obtained
from it.
This is done through interactive dashboards specifically designed to make data
analysis visual and intuitive, providing the possibility of understanding the
information in a clear and fast way.
In addition, this system extracts data in real-time, allowing for more accurate analysis.
The use of data to guide decision-making in business strategy is known as "data-
driven decision making".
 Using Analytics for Better Decision-Making

Let's take a look at some stages of this methodology

 Defining the Problem
 Data preparation
 Data processing
 Data analytics to generate knowledge
 Implementation
 Data archiving
 Conclusion: data analytics is key to making good decisions
 Analytics for Human Capital in the Value Chain

 The HR value chain and analytics

 All HR outcomes and activities that HR focuses on should lead to these business outcomes. Analytics
is a great tool to measure the effectiveness of the HR interventions aimed at reaching these business
outcomes and increasing the overall organizational effectiveness.
 What is value chain analysis? Value chain analysis is a strategic process that can increase profit
margins and provide a competitive advantage for companies of all sizes. Within this analysis,
businesses identify areas where the value of specific production and sales activities can be increased.
 What is the value chain of human capital?
The HR value chain is a model that shows how the outputs of HR activities and practises contribute to
company objectives. It demonstrates that the department has a number of processes and actions that
result in HR results, which help the organisation achieve its goals.
 HUMAN RESOURCES VALUE CHAIN : UNLOCKING THE STRATEGIES POTENTIAL OF
HR
 Workforce Planning
 Recruitment and Selection:
 Onboarding and Orientation:
 Training and Development:
 Performance Management:
 Compensation and Benefits:
 Employee Relations
 Balance ScoreCard
A balanced scorecard (BSC) is a strategic tool used in human resources (HR) to
measure and manage the effectiveness of HR performance.
What it is
A BSC is a strategic management system that measures HR performance in relation
to organizational goals. It uses both financial and non-financial metrics to provide a
balanced view of an organization's performance
What it measures
A BSC can include metrics related to employee satisfaction, retention, training
effectiveness, and alignment with organizational culture
How it's used
A BSC can be used to:
Define and measure the strategic value of HR
Gauge strategy performance
Review the success of organizations
How it's implemented
A BSC is implemented by linking performance measures to
databases and IT systems, communicating the BSC throughout the
organization, and encouraging the development of second-level
metrics.
 Return on investment (ROI)
What is human capital ROI?
Human capital ROI (HCROI) is a strategic HR metric that reflects the financial value
added by the workforce as a result of the money spent on employees (in terms of
recruiting, employee compensation, talent management, training, etc.). It shows the
value that employees contribute individually or collectively. The metric is a true
reflection of the value of the human capital in an organization.

Benefits of using the human capital ROI as a metric and KPI

 Understanding the impact of your human capital initiatives
 Showing tangible results of HC initiatives to the leadership
 Identifying and filling the gaps in human capital.
 Improve your HC processes.
 Eliminate ineffective HC processes.
 Return on investment (ROI)
Return on investment (ROI) in human resources (HR) is a metric that measures the
financial impact of HR programs and initiatives. It compares the value generated by
HR initiatives to the costs associated with implementing them. The formula for
calculating ROI is (Benefit – Cost) / Cost x 100.
In the context of HR, ROI helps evaluate the effectiveness of programs, practices,
and initiatives aimed at optimizing the workforce and enhancing organizational
performance. The formula for calculating ROI is straightforward: (Benefit – Cost) /
Cost x 100.
 Predictive analytics
Predictive HR analytics is a process that uses historical data and statistics to predict
future HR outcomes. It can help HR departments make more strategic decisions by
identifying patterns and insights in data from various HR functions.
Predictive HR analytics can forecast a team member's future performance based on
historical performance data. This helps the HR team identify high-performing people
who could be potential successors for critical roles, and can help them discover why
others may be lagging behind. Employee engagement and wellbeing.
Predictive analytics is an upcoming trend in Human Resources (HR). Recruitment
tools predict high performers, and increasingly companies are able to predict which
employee is likely to leave.
 How HR Can Benefit from Predictive Analytics
HR predictive analytics uses historical data to predict and forecast future HR matters.
It can help improve recruitment practices, reduce turnover rates, and achieve optimal
performance.
The different phases of HR analytics include descriptive, diagnostic, predictive, and
prescriptive analytics.
Predictive analytics can optimize employee recruitment, skill building, and retention
strategies.
Implementing predictive analytics requires evaluating your tech stack, defining
business objectives, addressing knowledge gaps, and considering software factors.