Overview of HR Balanced Scorecard
HR Balanced scorecard i.e. the application of Balanced Scorecard in Human Resource Management is an excellent way to – (i) Align the HR function to meet the organization objectives (ii) Measure the effectiveness of the HR function.
In this article, I will provide you the overview of HR Balanced Scorecard, and tell you that how the Balanced Scorecard approach in HR can transform the way HR department functions.
To start with, we will understand the Balanced Scorecard approach in general. Subsequently we will see its application in Human Resource Management. I will also provide you an HR Balanced scorecard template which you can customize and apply in your organization. You can also download the details in the pdf or ppt format.
What is Balanced Scorecard
A Balanced Scorecard is a management tool to help organizations achieve the Business Goals. Unlike the traditional measures which focuses only on Financial perspectives, the balanced scorecard approach focuses on 4 perspectives. Following are the 4 perspectives of Balanced Scorecard approach –
- Internal Process
- Organizational Capacity (also called Learning & Growth)
The balanced scorecard (BSC) helps to meet the organization’s goals by –
- Aligning the day-to-day work that everyone is doing with organizational goals & strategy
- Measure and monitor progress towards achievement of strategic targets
HR Balanced Scorecard
Balanced scorecard can very well be applied in HR. It helps to align the HR function with the organizational strategy & goals. It also helps in highlighting the contribution of HR, in organizational success.
Below is an example of application of HR Balanced Scorecard in Recruitment –
Finance Metric for Recruitment – Cost per Hire
Customer Metric – Quality of Recruitment e.g. % of the new recruits getting a rating of 4 out of 5, or higher than that.
Internal Process Metric – Recruitment Cycle Time or TAT for eg. the TAT of 30 days for each position
Organizational Capacity/ Learning – Learning associated with Recruitment for eg. No. of training for the Recruitment Team
In my next article I will write about the Strategy map in Balanced Scorecard, HR Strategy Map through the Balanced Scorecard, HR Balanced Scorecard template, & 10 reasons to implement HR Balanced Scorecard.