As I am sure we are all aware, a key role of HR is to monitor employee performance with the aim of maximising a company’s efficiency and profitability. In fact, according to a recent PwC HR Survey, 97% of businesses use a formal performance management program. That being said, HR departments themselves should also understand the need to have their own effectiveness monitored for exactly the same reasons.
 
Of course, it can be difficult for companies to tangibly measure the effectiveness of its HR, especially as the department deals with so many areas of the business. Consultancy, payroll, holidays, sick pay, auditing – there is a vast array of everyday aspects of a business which are controlled by HR, making it really tough to monitor. In addition, with the role of HR continually adapting and updating due to new technologies and workplace demands, measuring HR performance is becoming increasingly more taxing. The reality is, when it comes to measuring HR success, companies don’t know what to look for.

While it would perhaps be too time consuming, costly and unrealistic to analyse and evaluate all aspects of HR, here are a few areas to focus on to see how your department is getting on and where it needs to up its game:

Employee Retention
 
Without doubt one of the biggest measures of HR success is employee retention. Retention rates go to show that hiring techniques are working effectively and HR is helping to find the right fit for the organisation. They also go a long way to indicating employee engagement and happiness in the workforce – after all, the happier the employee the less likely they are to jump ship. What’s more? Employee retention is easy to calculate and can be done regularly, even on a quarterly basis, without the need for too much manpower.
 
As job-hopping becomes more and more common, particularly amongst millennials, the hallmark of a good, strong company might just be how well it holds on to its current talent.
 
Promotion
 
Again, a crucial role of HR is both training and developing staff and providing them with transparent career paths. Therefore, a high number of annual internal promotions would suggest strong employee development within a company and prove that HR’s role in training and mentoring is helping staff climb up the career ladder. Granted, promotion is not solely down to specific staff training programmes but there is no doubt it is an indicator of overall internal company development that is, at least partly, influenced by HR initiatives.
 
Employee Satisfaction
 
While promotions and employee retention are relatively easy to calculate, employee satisfaction can be a little trickier. One of the most effective ways of measuring the happiness of your workforce is by offering your staff a satisfaction survey. Surveys that can be done in private tend to glean the most reliable results, as employees are not put under immediate, face-to-face pressure to respond.
 
As HR is responsible for day-to-day operations in an organisation – managing everything from payroll to mediation to disciplinary action - employee satisfaction is a good measure of the effectiveness of a company’s HR department. The age old saying, a happy worker is a productive worker, is certainly true and HR plays a big role in ensuring this is the case.  Listen to your employees, ask them what they think, and ensure that line managers understand the need for constant feedback from staff – it’s the only way to really know if a company is on the right track internally.
 
Company Culture

As I have highlighted in recent blogs, HR is playing a vital role in creating a strong company culture in business. Companies that exude a strong company culture highlighting values of fairness and equality tend to see improvements in talent acquisition and retention. HR is essential when it comes to promoting this company culture and ensuring that all employees are on the same page.
 
Company culture, however, can be even harder to evaluate than employee satisfaction.  Holding values such as openness and transparency high within a business, promoting diversity initiatives, ensuring there are no gender pay gaps - these are all measures companies should be taking to harness a strong company culture. Clearly therefore, increases in employee retention and acquisition are good indicators that a business has a strong company culture that HR is effectively promoting.
 
While they may be costly or time consuming, measuring and analysing successes and failures in HR, or any department for that matter, are always worthwhile tasks. The trick is to ensure that the business elements which are being measured and built upon will ultimately add value to the overall strategic aims of the business. After all, we can’t improve on what we don’t know.
 
For more helpful HR tips and advice, CLICK HERE to sign up to our newsletter



​

Within the majority of my articles, I discuss how important the relationship is between employer and employee, and nothing is further from the truth. Sometimes, however, it can be easy for managers to be slightly alienated from their teams, due to not wanting to seem too familiar or to ensure the managerial role is respected. In larger companies, the divide between the roles can be even bigger and can often lead to problems in an organisation and its ability to execute strategies productively.

Gone are the days when a company could simply have one or two staff events a year for employees at every level to mingle. Instead, for businesses to benefit from effective leadership, they need to work towards a more inclusive approach, valuing all levels of contributions from staff members, irrespective of their role in the company.

Ultimately, ensuring the divide is being lessened comes down to the manager and how they work with their team to engage them in business strategies that affect customers and client interaction. The majority of manager training focuses on compliance and safety, as well as HR policies and procedures, however it is important for companies to ensure managers have training in leadership skills to ensure all teams are managed correctly.

No matter which industry one is in, a concept known as the “Service-Profit Chain” proves that managers who drive employee engagement make a positive impact on company growth and profitability.

So how does a manager break down the “them and us” attitude?

There are a number of factors involved in narrowing the gap; however managers need to understand the following three things before approaching the other factors:

1. Managers have to understand their role in the company, which more often than not is about ensuring their team meet their targets and deliver results.
   
2. Managers must inspire their team to work to their full potential whilst ensuring the employees understand the corporate vision and their role in the company.
   
3. Managers have to communicate with their team members, ensuring that team spirit and joint accountability is at the forefront of any task presented to them.

Communication is Key

There are two types of leadership when addressing communication: visible and communicative.

Visible leadership occurs when employees have the opportunity to speak to managers face to face, allowing both parties to form an attachment whilst reassuring team members that senior management are interested in their opinions.

Communicative leadership allows for employees to be a part of company strategies and be aware of high level decisions that may affect them in their job. Two way communication can be achieved through one to one meetings, team meetings, focus groups and employee forums where staff members can engage with each other, as well as senior management on innovative ideas, thoughts and concerns they may have.

Get Involved

Managers should attempt to spend time in different parts of the business throughout the year to gain an understanding of potential business issues from the perspective of their team. Employees are much more willing to work harder if management get involved in completing projects or hitting targets for the good of the team. Leading by example ensures that employees know the manager isn’t asking them to do something they wouldn’t be willing to do themselves.

Reward and Recognise Success

A lot of research has been done into positive reinforcement and the benefit it has for motivating and improving skills. Managers need to be aware of recognising and acknowledging individual team members success when it is deserved and offering constructive criticism instead of negative reinforcement which could lead to resentment.

Do Not Micromanage

Putting team members in a position where they have to make their own decisions and deal with the consequences leads to a stronger and more versatile work environment. Through management allowing their team to solve problems, staff members will gain confidence and be more likely to work independently in future tasks. If management don’t allow this to happen and constantly micromanage, employees will feel they are unable to do the job thy have been hired for and will constantly seek reassurance.

Encourage Offsite Activities

There are numerous team building days across Ireland that specialise in allowing all employees at every level in the company to share one space without potentially feeling intimidated by someone’s job title. Managers should engage in such activities once or twice a year to ensure all employees realise that the company has their best interests at heart whilst motivating and inspiring them outside the work place.

Be on First Name Terms

This may seem either obvious or rather old fashioned but there are still some companies who insist upper management are addressed by their surname. Unfortunately this leads to a level of intimidation from junior staff members. Addressing everyone by their first name removes any sense of hierarchy and brings openness and approachability between every employee in the company.

Trust is a Two Way Street

Last but definitely not least, trust and respect is the foundation of building a successful employee-manager relationship. Whilst managers find it important to trust their team members to do their job, employees also have to trust that their manager has their best interests at heart. Trust can come in the form of managers being open and honest about future plans or concerns, representing their team to employees high up the chain as well as protecting them from potential negative influences.

Managers hold the key to unlocking employee talent, keeping clients happy and ultimately driving growth within the company. Therefore it’s of utmost importance that companies give managers the tools and vision to help their teams succeed!



The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.