Your Human Resources department plays a crucial role in the success of your business. Whether it’s an HR department of one or a larger team, an effective HR function can be a valuable partner and help create a thriving and productive workplace environment. But, like every department, their success must be measured to be most effective. HR effectiveness is a term used to describe the process of determining the impact your HR team has on your employees.
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Successful HR Teams
While every business has different needs, here are some signs of an effective HR department:
· High employee retention and low turnover rates
· Communicative managers
· Happy, engaged employees
· A strong employer brand
· Airtight HR processes
· Stellar HR and benefits compliance
How Can I Measure HR Effectiveness?
If your business is soaring through HR audits, has great ratings on Glassdoor and similar job posting websites and has many long-term employees, your HR team is probably doing an excellent job. But some indicators can be more challenging to measure.
To establish benchmarks, here are some metrics you can use for a quantitative analysis of HR performance:
· Turnover rate
· Retention rate
· Overtime per employee
· Revenue per employee
· Employee absence rate
· Cost to hire
· Time per hire
· Labor cost per employee
· Promotion rate
Employee surveys can also be beneficial in determining how effective your employees think your HR team is.
How Can I Improve HR Effectiveness?
Consider the following strategies to make your HR team more effective:
· Provide feedback by listening to employee groups that HR frequently interacts with and communicating their responses to your HR team.
· Set goals by selecting chosen metrics to gauge HR’s success.
· Look at hire quality by surveying managers on recently hired employees and looking at new-hire retention rates.
· Align company objectives by asking HR to meet regularly with business leaders, ensuring HR has a clear understanding of how they can better support the company.
For more guidance, contact Beckworth Beneficial today.
We’re Here to Help
We understand that safe, happy employees are crucial for your business's success. Contact Beckworth Beneficial to learn what we can do for you and to speak to an insurance agent today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.