HR – From Support function to Profit Centre

At a times when HR is started to be considered as a profit center rather than a cost center , interesting trends are emerging. For the first time, HR as a business process is considered for formal benchmarking and goal setting.

Normally an HR person will have the following goals.

  • Zero Recruitment gap: Recruitment targets are made SMART goal by including time bound filling of vacancies like any replacement or new vacancy reported will be completed within a stipulated time. Using the historical data , a proper forecasting can be done.There are several tools available like a BLR(Binary Logistic Regression) or a Linear Regression model , which are really accurate in forecasting.
  • A proper Gap Analysis project can be under taken and set as a goal
    Training: The number of training hours per annum is another target which can be given to an HR person.

This can be outsourced as well to professional trainers. The HR can design the entire training calendar and make sure the time-bound execution of the same

  • Reduction of man-hours lost due to absenteeism: HR may take a record of absenteeism in the last year and decide what reduction do you expect to bring this year and put it as a target for the year.
  • Process Excellence Project can be carried out in such instances
    Employee grievances/ disputes reduction: This is another target which can be given to an HR person. In establishments which have trade Unions, this is more quantifiable because the manhours lost due to employee unrest itself can be compared and you can be asked to reduce it to a certain level.
  • Legal compliance or 100% compliance with regard to filing of returns, renewal of licences etc can also be a goal of HR
  • Quality Management System: Introduction of any quality standards (like 5S) can be a target

 

Now a days HR are been given more targets  outside their regular day to day activities. The inclusion of HR in the strategic decisions are becoming a norm rather than a fad.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free WordPress Themes