Critical Success Factors for Human Resource Departments

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Critical success factors for human resources vary by function. Benefits and compensation associates have a different set of success factors than the training managers. Recruiting and employment specialists are judged by different criteria than employee relations managers. What each function does have in common are the company's employees at large. Every associate in human resources serves the employee population, making them among the most important people in a company's organization.

Compensation and Benefits

  • One critical success factor for your compensation and benefits associates is how effective your salary structure is compared to the competition. Does you pay structure attract and keep key associates and does your turnover stay low as a result of that structure. Another critical success factor is your benefits program. Evaluate whether your healthcare plan has enough choices and options for your associates while keeping costs low for your company. The effectiveness of your 401k retirement program is another measure of success for this human resource function.

Training and Development

  • Your training department will be measured by the success of your training and development programs. The effectiveness and success of these programs are certainly critical success factors for this function. Critical success factors include evaluations of training programs, and whether new skills are used back on the job. Participant reactions to training programs and the ability of your training department to produce programs on time and within budget are also important success factors for this function.

Employee Relations

  • Your employee relations department has a critical success factor in employee satisfaction. Employee issues must be handled quickly and confidentially. Potential issues need to be resolved before they become larger issues. Counseling of associates and an effective performance improvement plan are also critical success areas for employee relations employees. Reducing turnover percentages and the ability to attract new associates are also key success measures for employee relations. An effective working relationship with your line managers is also essential for the success of this human resources function.

Recruiting and Hiring

  • Employee retention is a key success factor for human resource associates responsible for recruiting and hiring. How efficiently these associates locate and hire outstanding employees is one of the most important areas of success for both this function and a company. Recruiting techniques must produce a solid core of qualified applicants and the hiring process must be easy to understand and use. Mistakes in hiring need to be very low and the right employee must always be hired.

References

  • "Management of Organizational Behavior"; Paul Hersey and Ken Blanchard; 1982
  • "Built to Last"; James Collins and Jerry I. Porras; 1994
  • "Developing HR Talent: Building A Strategic Partnership with the Business"; Kirsty Saddler and Jan Hills; 2011
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