Sunday, September 28, 2008

Which Metric can HR REALLY Impact?

In today’s chaotic environment with most of the economic metrics declining, which metric can HR focus on? Now more than ever performance matters. We hear about a different company laying off workers on a daily basis. It is critical that we keep our highest performing talent and that we hire the best performing talent.

So, this job is easier said than done. You have to start with a performance management system that is tightly linked to the company's strategy. While our economy recovers, this is an excellent time for HR professionals to dust off the old performance management system and make sure it supports the goals and objectives of the company.

A great performance management system:

1) Is linked to goals and objectives of the company

2) Is based on successful behaviors linked to organizational and job specific competencies

3) Is understood by managers and employees

4) Is administered fairly and consistently

5) Is focused on development and not punishment

6) Is simple

7) Is objective with a balance of qualitative and quantitative measures

I believe HR can have a direct impact on performance and creating a sound performance management system is one way to do that. Training, measurement, and process improvement are other ways HR can assist the company is getting a real bang for the buck!

One important factor in a performance based organization is that the CULTURE has to be performance based as well. Going from a culture where mediocrity and average is acceptable takes time and patience. (this topic is for a different blog, on another day! just felt compelled to mention it!)

With companies focused on the bottom line and trying to do more with less, performance is critical and I feel will be HR's focus for many years to come.

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