MEASURING AND DEMONSTRATING THE 'CUSTOMER' VALUE OF HR SERVICES

Executive Summary

1.     This briefing argues that HR must develop 'hard' measures of the value it delivers to the business, measures that show how HR interventions are helping the business drive forward towards its goals.

2.     Too often, HR programmes are not delivering value to the business. HR must be able to identify these programmes and either improve them or abandon them altogether.

3.     HR must also work hard to collect and act upon feedback from its customers. In short, therefore, it must become a truly customer-focused function.

4.     Linked to the above point, it will show that HR can also look out to the external customers of the business to gain a measure of the efficacy of HR interventions.

5.     A detailed overview of the HR auditing process will be provided. This can help HR identify the performance levels it should be delivering to, assess how in practice it is performing against these best practice standards and identify continuous improvement opportunities.

6.     A case report on the Transmission and Distribution Division of Canada-based utility provider BC Hydro and Power shows how survey instruments can be created to measure employee alignment with change management initiatives and show progress towards a key balanced scorecard objective.

7.     Finally, the briefing examines how HR functions can assess the return on investment (ROI) of HR programmes, and thus provide a 'hard' financial measure of the value of HR.

8.     A case study on the Corporate HR department of Canada-headquartered Scotiabank demonstrates best practice in creating business and internal customer-focused objectives and measures.

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