How to measure the quality of HR Services?
Human Resources provides many HR services and HR products to departments, managers, and employees. It interacts almost with every single person in the organization, and many transactions are executed each business day. Managers have complex requests and employees want to receive many confirmations. HR has to update the organizational chart and keep all personnel files accurate and up to date. It has to recruit new employees and terminate all leavers correctly. HR has to measure the quality of provided services. Otherwise, managers and employees will complain that HR does not provide excellent services to them. Each of them sees just one single request; they do not know about the performance of the HR department at all.
HR is not just a strategic business unit that we have all dreamed of. We have to keep the organization running, as well. We have to accomplish thousands of individual transactions each month. It is hard to process them without any failures and errors. It is hard to argue with managers that the process is stable, just in this case there was a mistake. HR has to measure the performance of key HR processes to have arguments for managers and employees.
First, HR has to define the term quality of Human Resources services. HR has to make a proper definition of all HR processes that should measured and identify why these processes and procedures should be measured. Each process has to be necessary for Human Resources and the internal client. The client will receive reports about the performance and productivity of HR processes. That is the reason his or her interest is essential.
Second, HR has to define the right HR Measurement System. It is not just about the processes to be measured; it is about the critical steps in the process that should be measured and reported. As the example, the recruitment process should not be measured just as a time to hire, but HR should also measure which process steps take longer than expected. Usually, the hiring manager is a weakest point of the process. Measuring right process steps identifies the issues and gaps. The definition of the HR measurement requires much communication with line managers because they have to agree with the proposals. HR cannot set just the measures that do not indicate the performance and productivity of Human Resources for the business. Each measurement has to support the value added and contribute to building the competitive advantage.
Third, HR KPIs have to be adequately designed, and desired values must be set. HR has to balance the requirements of the business and costs associated with the high performance of processes. Each manager likes to get a new hire the next day, but the costs of such an operation are enormous. HR has to find the right balance because it has to manage costs and workforce required. Managers have to accept the definition of the quality of provided HR services.
Last, HR has to set the regular reporting system. The Intranet is the best place to publish weekly results about the performance and quality of Human Resources in the organization. HR should let everyone see the spot results and trends. There should be no one in the company who has no access because everyone is the internal client of HR. The leadership team should receive the enhanced version of HR reports including comments on long term trends. Many ill spots in the business are visible in HR reports, and HR should be brave to point at them.
The quality of HR services has to be determined by numbers and measures. It is not a philosophy; each manager should see a clear set of figures, target values, and the plan how to reach the desired status of Human Resources. Then, HR and managers can talk about the quality of services.