HR scorecard

HR scorecard

1. Balanced scorecard

A balanced score card means achievement of balance in 4 aspects in an organization as follows:

1.1 Financial aspect: to succeed financially… how should we appear to our shareholders.. how it contributes to profit.

1.2 Customer aspect: to achieve organization vision how should we appear to customers…their expectations and how much we are successful in meeting it.. It covers market share, customer acquisition, customer retention and satisfaction, customer loyalty, customer profitability…

1.3 Internal Business Process:

What are the business process should we excel at in attaining growth. It includes
CRM,SCM, post sale service process etc.

1.4 Learning and growth: to achieve aim how is the organization sustaining and the ability to change and improvement…It concerns with employee capabilities, IS capabilities, organizational climate for employee motivation, challenging status quo…

2. HR scorecard

HR scorecard include components as follows:

2.1 Financial Perspective

This perspective tries to answer questions relating to the financial measures that demonstrate how people and the HR function add value to the organization. This might include arriving at the value of the human assets and total people expenses for the company.


• Compensation and benefits per employee.
• HR expenses per employee.
• Turnover cost.
• Profit per employee.
• Cost of injuries…

2.2 Strategic Perspective.

It is the results of strategic initiatives managed by the HR group. The strategic perspective focuses on the measurement of the effectiveness of major strategy-linked people goals.


• HR budget / actual.
• HR annual resource plan.
• Change management capability of the organization
• Skills/ competency level…

2.3.Operational Perspective

the operational tasks at which HR must excel. This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization. Examples include measuring HR processes in terms of cost, quality and cycle time such as time to fill vacancies.


• Training cost per employee
• Training hours per employee
• Average employee tenure in the company
• Lost time due to injuries
• Time taken to fill vacancies
• Cost per recruitment promotions
• Absenteeism by job category
• Accident costs
• Accident safety ratings

2.4.Customer Perspective

This focuses on the effectiveness of HR from the internal customer viewpoint. Are the customers of HR satisfied with their service; are service level agreements met; do the customers think they can get better service elsewhere? Conducting an HR customer survey might typically arrive at this.


• Employee perception of the HRM
• Employee perception of the company , as an employer
• Customer/market perception of the company, as an employer.

Related documents

Benefits of HR scorecard
HR scorecard process
HR career ebooks (you can download free and ref all ebooks related HR career…)

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One Response to “HR scorecard”

  1. Lau ra says:

    Tks for This corecard

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