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Balanced Scorecard

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HR Metrics That Matter

  • Format: Self-paced
  • Course Duration: 1 hr 16 mins
  • SHRM Professional Development Credits: 1.25
  • HRCI Business Recertification Credits: 1.25
  • Certificate of Completion (after passing quiz)

Today, we are addicted to numbers! Our focus on metrics has grown tremendously in the last decade. Targets, Scorecards, Dashboards, KPIs. We all know the buzzwords. In fact, many of us spend hours calculating and presenting what we think are key HR performance indicators. But have you asked yourself the most important question of all?

“If I stop tracking my current metrics, will anyone notice?”

It’s possible you and your team are not only wasting time, but also hurting your credibility by sharing useless information!

The work you do matters. Your Human Resources department must be able to develop and use metrics directly linked to an organization’s goals like every function of the business. If you’re tired of measuring outcomes that no one cares about, learn how to identify KPIs (key performance indicators) that impact your organization’s balanced scorecard and keep your HR team on target.

Modules:

  • Setting The Foundation
  • The Process
  • Business Example
  • Conclusion

SHRM:
HR Jetpack is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1.25 PDCs for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.

HRCI:
This activity, has been approved for 1.25 HR (Business) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
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Title: Balanced Scorecard
Module: Setting The Foundation
Duration: 4:16

The balanced scorecard is a great tool used for displaying a summary of an organization’s key performance indicators (or KPIs). This concept was developed in the early 90s by Robert Kaplan and David Norton. Some organizations (not all) use this tool to capture their KPIs in four basic segments or quadrants, Finance, Customers, Business Processes and Learning & Growth.

The first quadrant is Finance. Finance typically includes indicators or metrics such as revenue, profitability, costs, etc. The focus is on the financial health of the organization. 

The second segment is Customer. Think customer satisfaction and market share. Usually indicators in this quadrant are related to customer growth and even brand awareness.

The third quadrant is Business Process. Consider all the processes your organization follows to deliver its products or services to the customer. Business Process focuses on objectives related to the operations of your company. Typical indicators include quality issues and process improvements.

The final segment is Learning and Growth. For Learning and Growth, it’s about taking action or setting goals associated to the future of the organization. KPIs with objectives related to the development of your employees, your workplace culture and information systems are identified here. You may notice HR can have a direct influence in this area.

Before moving on, I’d like to make a couple of final points about the Balanced Scorecard.
Number 1. HR should develop its own balanced scorecard. In fact, it’s a great way to demonstrate your focus on the business. Using a balanced scorecard, you’ll measure particular key performance indicators matched to those of the business and be able to focus on your HR department’s goals in association to each quadrant. When completing an HR balanced scorecard, we can start by asking the question…

Who benefits from our services internally? In other words, “Who is our customer?”. I’m not talking about the person who purchases or uses your organization’s product or service. I’m referring to HR’s internal customer, the employee.

And what internal business processes do you complete to satisfy the internal customer? The person could be another business leader, manager or individual contributor. For example, the on-boarding process. New hires are one of your internal customers and having a program in place to help bring them into the organization is very important for retention and engagement rates.

Examining how to improve this process and increase your new hires’ level of satisfaction can be shown on your scorecard. That’s the beauty of scorecards. You can relate these categories directly to your function, the function of human resources. 

And my final point about balanced scorecards…
Not every scorecard has the four segments of Finance, Customer, Internal business process and Learning and Growth. Again, remember this will vary by organization and industry. The expectation is that your organization will have goals in each of these areas. Once those are established, department goals can be developed and the appropriate metrics will be identified and linked to each goal. Therefore, the information must cascade down through the organization.

 

Instructor: Christina A. Danforth

Christina A. Danforth, SHRM-SCP & SPHR, launched HR Jetpack in 2016 to support the development and professional growth of her fellow HR colleagues. She started her HR career in 2002. After obtaining her Master’s in Business Administration degree, Christina joined United Technologies Corporation. She moved across the United States...

Christina's Full Bio

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