Within a company, professionals from all departments work daily in search of results, and HR is no different. Increasingly strategic for organizations, the Human Resources area also has goals to fulfill. Therefore, generating a HR performance report it is fundamental for the sector.
The report's importance has increased due to recent changes in the labor market. For a long time, HR was considered a department strictly operational, but that changed with the advancement of technology and with the new profile of companies in the market.
With that in mind, we explain in this article everything you need to know to set up a HR performance report effective for your department. Want to know more? Check it out below!
What is an HR performance report?
O HR performance report aims to document the results of the Human Resources team's day-to-day efforts. For that, they are used metrics and indicators that point out the results of each activity carried out by the department.
So, it is possible to make a periodic evaluation and identify the team's successes and mistakes. After this analysis, the leaders put together an action plan to make the necessary route corrections, if necessary.
Following this cycle, HR managers ensure that the department is always evolving and generating better results every day.
What are the benefits of the HR performance report?
Including the performance report in the HR routine can bring several benefits to the sector and to the company as a whole. See below the main advantages of adopting this practice.
Greater precision in decision making
Every day, HR members make a number of important choices, such as hiring a new employee or the reevaluation of the benefits portfolio, for example. Any evaluation error in these decisions can cause great damage to the business. So, how to increase the hit rate?
Analyze the HR performance report is of great help in that goal. With solid information about the sector's performance, it is possible to have a clearer vision of what happens, preventing important decisions from being made by simple “guessing”.
Every department needs set goals, but this task is more delicate than it looks. Unchallenging goals do not produce interesting results. On the other hand, exaggerating the dose leaves the team unmotivated, since the goals set are unreachable.
In order to find balance, it is necessary to know the current situation of the company very well, with precise information on the results of HR and the recruitment and selection processes. This is only possible with reliable reports, which faithfully portray the reality of the department.
Show HR results to company managers
O HR performance report it is essential to show business leaders the strategic importance of the department.
Even in the new reality of the market, many people still see HR only as an additional cost for the company. The best way to change this view is to show the sector's performance with relevant and accurate figures.
Which indicators should be included in the HR performance report?
One HR performance report The complete report should include a series of important metrics for the assessment of the team's results.
There are several KPIs (Key Performance Indicators) that can be analyzed, all with an important impact on the department's routine. Next, learn more about some of the main indicators.
1. Time of closing of vacancies
This is the time that HR takes to fill an open position. It is an important indicator to measure the recruitment efficiency and the company's selection processes.
The faster and more accurate hiring is, the better for the organization. After all, this means less costs, less time with the staff missing and more productivity for the team.
If the hiring time is too long, HR will probably have to review its recruitment practices to make the more efficient process.
2. ROI of hiring
The acronym ROI means return on investment, or return on investment, in London. This metric evaluates the cost-benefit of a given investment from the company. Here, the concept is applied to the hiring made by HR.
It is necessary to put in the balance the amounts invested in the selection process and in the remuneration of the hired employee versus his performance in the work team.
Contrary to what many people think, it is not a matter of always looking for the cheapest professional, but of cost benefit. Qualified employees who fit in the budget and bring an expressive return are excellent to keep the ROI of hiring always high.
3. Turnover rate
O turnover it is the relationship between the number of employees hired and terminated in a given period of time. That rate should always be the lowest possible. If there are too many employees quitting, something is probably wrong with HR's people management strategy.
The high rate of turnover can mean, for example, the presence of a toxic manager, who does not know how to handle or lead his team. Identifying the factors that are interfering in the rtalent retention, HR can devise a strategy to increase employee satisfaction and avoid this problem.
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4. Effectiveness of HR tools
HR software is essential to optimize the routines of the sector. And the best way to prove this importance is to have adequate metrics to evidence the results.
Therefore, the HR performance report must contain the detailed performance of each activity in the sector and what is the impact of technology in each one. If the numbers are unimpressive, it may be necessary to change systems or study ways to make better use of the software.
As we saw throughout the post, the HR performance report it is essential for the department to act strategically. Now that you know the importance of this practice, how about implementing it in your company's day-to-day activities. That way, the results of people management in your business are sure to take it a step further!
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