Question

In about 200 words

”A staffing evaluation enables the HR group to justify what it has done and how it contributed to the firm's bottom line" There are many staffing evaluation systems. Select any two (e.g. KPI; Performance Metric . Present your perspective and discuss the positives and potential problems with using them Do such systems add or take away the value of the HR department?

Answer 1

1. Key Performance Indicators (KPI): KPIs are the metrics used to measure critical indicators of business performance. KPIs are set and they are compared with goals and objectives. In Staffing systems, KPIs may be employee retention rate, customer satisfaction rate etc. These indicators are analyzed and compared with key objectives to understand the performance of business processes. Benefits in using KPIs are they are are reliable indicators of key performance indicators and limitation is that KPIs are qualitative; therefore they are subjective and depends on understanding and judgement of the rater. There is no single criteria for analyzing and understanding the results generated from KPIs.

2. Return on Investment: Return on Investment is the financial ratio that measures the percentage of return obtained from amount of investment. This measure can be used to analyze the worth of staff through their contributions in financial terms. The contribution is then compared with investment made on that individual. If the ratio of return and investment is found to be profitable, then staffing is said to be effective and vice versa. Benefit in using this method is that it gives precise results of staff's worth. Drawback in using this method is that it is highly quantitative measure. It does not take into account qualitative measures like skills of the staff; interpersonal skills; decision making; leadership etc.