HUMAN RESOURCE MANAGEMENT

Personal Assignment 1
Full Name: Nguyen Thi Thao Nhi
Student code: 050606180278
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1. What are HR Metrics? Give examples of some common HR Metrics

1.1 Human Resources Metrics
HR metrics are a vital method for quantifying the impact and cost of HR processes and
employee programs. It is also a strategy for measuring the progress or collapse
of HR actions. HR metrics can uncover a business’s strengths and vulnerabilities and
facilitate an understanding of the areas requiring focus or improvement as well as those
ready for capitalization. From fundamental HR capability to revealing the precise value
of each new worker, HR metrics are priceless for evaluating your business and devising
future approaches. The most intuitive, user - friendly HR administration programs can
make employing HR metrics easy, straightforward, and uncomplicated.
1.2 Common examples of HR Metrics
1.2.1 Recruitment
 Time to hire
This measures the number of days
between a candidate applying for a
job, and them accepting a job offer.
Time to hire gives insights into
recruiting efficiency and candidate
experience.
 Cost per hire
Employers use cost-per-hire metrics to determine the expense of recruiting, training
and maintaining a permanent workforce. Several factors become part of cost-per-hire

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metrics, such as the time recruiters and employers spend sourcing and interviewing
candidates. This step can be as detailed as time expended researching job posting
venues, locating venues that attract a diverse group of qualified applicants and the
actual task of posting job postings.
 Early turnover
This early leaver metric indicates whether there is a mismatch between the person and
the company or between the person and his/her position.
 Time since last promotion
This rather straightforward metric is useful in explaining why your high potentials leave.
1.2.2 Revenue
 Revenue per employee
This metric shows the efficiency of the organization as a whole. The ‘revenue per
employee’ metric is an indicator of the quality of hired employees.
 Performance and potential (the 9- box grid)
The 9 box grid is a well-known tool for
talent management and succession
planning. In this practitioner’s guide, we
will explain each box in the 9 box grid,
talent management action steps per
category, and how this framework can
be used in Excel for advanced reporting.

 Engagement rating

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An engaged workforce is a productive workforce. Engagement might be the most
important ‘soft’ HR outcome. People who like their job and who are proud of their
company are generally more engaged, even if the work environment is challenging and
pressure can be high. Engaged employees perform better and are more likely to perceive
challenges as positive and interesting.
 Billable hours per employee
Billable hours are the amounts of an employee's work time that can be charged to a client.
Employers charge clients at sometimes varying rates for different employees.
1.2.3 Other HR Metrics examples

2. In theory, HR planning always FOLLOWS strategic planning. In reality, is

it always correct? Why? Give an example to illustrate your explanation
 Human Resource Planning is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human
resource capacity of the organization can be utilized to fulfill these requirements
 Strategic Planning is a process in which leaders establish a direction for the
organization and determine what organizational goals are in the future.
From my point of view, human resource planning should always monitor strategic
planning so that reasonable additions can be made. Besides that, Strategic planning and
human resources planning basically have a symbiotic relationship, in that each function

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is dependent on the other. Here are some examples of how the relationship works in
practice:
 Impact assessments
When leaders start developing a strategic plan, they will liaise with different
department heads to see how the proposed business strategies might affect them. The
human resources planning team will figure out the financial impact of the initiative
based on the recruiting, training and retention strategies that may be necessary to
support the plan. If the initiative involves downsizing, for example, then human
resources managers must look at the various options for decreasing the labor supply
through dismissals, retirements, transfers out of the department, sabbaticals and
voluntary quitting.
Invariably, there will be a time cost associated with a new initiative. It's up to HR to
feedback how long it will take to hire or upskill permanent staff members and whether
the company can work with contractors in the interim. This helps senior leaders
develop a timescale for the new initiative.
 Executing the plan
As soon as a strategic initiative receives the green light, the human resources team must
ready the company's employees for the changes that are about to ensue. This might
include changing people's job descriptions, moving people between job units, policy
making, motivation strategies, developing training programs, and pinpointing and
eliminating labor shortages through recruitment and outsourcing.
 Feedback and monitoring
Once the strategic initiative is implemented, HR will monitor the changes that are being
made to the workforce to establish whether the policies
are sufficient, affordable and sustainable. Because the strategic plan is a long-term
plan, it is crucial for the business to keep monitoring its talent pipeline, and keep
updating its demand forecast, to ensure that the business always has the right people in
place to meet its objectives

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In conclusion, I strongly believe HR planning always follows strategic planning. HR
planning is always based upon the overall objectives and strategies of the company. In
fact, they probably should be developed in conjunction with each other. That's because
the strategic plan cannot be finalized until there are supporting talent strategies in place
from human resources, and the human resources plan cannot be finalized until the long-
term goals of the company are clear.

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References
Human Resource Management. (n.d.). In M. L. Robert, J. H. John, V. R. Sean, & M. A.
Patricia, Human Resource Management. Boston.
Nhan, D. T. (n.d.). Chapter 2. Human Resource Planning in a ever- changing
environment.
Thompson, J. (2019, March 27). How Is Human Resource Planning Integrated With
Strategic Planning? Retrieved from smallbusiness.chron:
https://smallbusiness.chron.com/human-resource-planning-integrated-strategic-
planning-63136.html
Vulpen, E. v. (n.d.). 14 HR Metrics Examples. Retrieved from AIHR:
https://www.aihr.com/blog/14-hr-metrics-examples/