Accounting in HR

KPI Name: HR accounting Balanced Scorecard Metrics

Related KPIs: HR, HR Hire, HR Training, Leadership, Motivation, HR Outsourcing, Awards, Retirement

Customers also viewed: HR Scorecard Pack | Finance Metrics | Banking Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the HR accounting Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

Balanced Scorecard Designer Screenshot:

HR

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Quality and quantity of assets present in an organization can specify its position in the prevailing market. One such precious asset is human resources. Putting these assets of the organization on the balance sheet is a new trend. But carrying out this process efficiently and effectively is a difficult task which requires a strategy-focused approach. KPIs can be a good way to perform this task.

In this context, four perspectives can be considered. These are: – HR costs; HR investments; HR outcomes; and some other Strategic factors.

HR costs perspective specifies the overall costs incurred on human resources and includes KPIs such as acquisition costs, remuneration, manpower planning and cost of non productive hours.

Next perspective, i.e. HR investments, considers that skills and abilities of the employees are the key to competitive advantage and that they can be enhanced by making planned investments. Specific areas of investments include information systems, education & training, succession planning and insurance.

HR outcomes can be known by looking at revenues, number of on-time deliveries, employee turnover, and yield. Improvements in these parameters can be attributed to a sound HR accounting plan.

Factors such as client satisfaction, market share, product and process quality, and strategic achievements can be grouped together under the strategic perspective in which each factor has its own importance.

These indicators can be arranged in a balanced scorecard and utilized by any organization to effectively and efficiently calculate the cost and benefits associated with their human resources.

KPI in Excel – Screenshot:

This is the actual scorecard with HR accounting Performance Indicators and performance indicators.