The HR scorecard is a management tool that measures HR efficiency and contribution to business strategy implementation. It aligns business strategy with HR objectives and delivers using financial, customer, and internal perspectives. Developing an HR scorecard involves clarifying business strategy, identifying HR deliverables, aligning HR architecture like functions and systems, and designing strategic measurement including an HR scorecard and metrics.

2. definition
The HR (human resources) scorecard matches
business strategy against HR deliverables and
objectives to provide a statistical basis by
which HR efficiency and contribution to
strategy implementation can be measured.

3. objectives
As such, the HR scorecard is a management tool
which allows a business to:
 Manage HR as a strategic asset and a source of
competitive advantage
 Quantitatively demonstrate HR’s contribution
to the firm’s financial results and bottom-line
profitability
 Create and measure the degree of alignment
between the strategy of the business and its HR
architecture

4. development of HR
scoRecaRd
The development of an HR Scorecard must be done with
three perspectives in mind as follows:
 A financial perspective
 A customer perspective
 An internal perspective
HR employees can implement steps to align HR goals
with the overall company mission, vision and business
objectives

5. HR ScoRecaRd
ImplementatIon
1.Clarify and articulate the business strategy
2. Develop the business case for HR as a strategic asset
3. Create a strategy map for the firm:
• Business indicators – leading and lagging
• Results – tangible and intangible
4. Identify HR deliverables within the strategy map
5. Align the HR architecture with HR deliverables:
• HR function
• HR system
• Strategic employee behaviors
6. Design the strategic measurement system:
• The HR scorecard
• Results measurements – tangible and intangible
7. Execute management by measurement
Periodically
test HR
measures
against the
firm’s strategy
map and
adjust as
required

6. HR aRcHItectuRe
 The HR function (services)
 The HR management system
○ Create links between promotions and
competencies
○ Provide skills training
○ Attract and retain high performers
 Strategic Employee Behaviors

7. Drive Long term
Shareholder Value
Enhance ROI of HR
Strategic Initiatives
Develop Internal HR
Capabilities
Develop Strategic
Employee
Competencies
Deploy HRIS System
Financial
Internal
Customers
HR Internal
Process
Learning
Create Positive
Work Environment
Enhance “Internal
Customer” (Employee)
Satisfaction
Enhance Employee
Productivity
Apply Excellent
Recruitment
Process
Optimize
Performance
Management System
Implement Best
Talent Management
Practices

8. Drive Long term
Shareholder Value
Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
• Shareholder value
• Shareholder value growth
• ROI of HR Strategic Programs
and Initiatives
Enhance ROI of HR
Strategic Initiatives
Enhance Employee
Productivity
• Profit per Employee
• Revenue per Employee

9. Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
• Ranking in “Best Place to Work Annual
Survey” (conducted by Fortune
Magazine)
• % of Employee Turn Over
• Employee Satisfaction Index
• Employee stability
• Improved Process cycle times
Create Positive
Work Environment
Enhance “Internal
Customer” (Employee)
Satisfaction

10. Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
Develop Strategic
Competencies
Apply Excellent
Recruitment Process
• Average lead time to recruit employees
• Recruiting cost per employee
• Performance of New Recruits during the
First Two Years of Employment
• Average Lead Time to Develop Strategic
Competencies
• Average Lead Time to Close Strategic
Competencies Gap
• % of Strategic Competencies Available
within the Organization

11. Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
Optimize Performance
Management System
Implement Best Talent
Management Practices
• Number of Qualified Talents per
Strategic Positions
• Progress of Talent Development Plan
(actual vs. plan)
• % of Senior Managers who Have Been
Promoted Internally
• Average Competency Assessment
Scores
• Number of Performance Feedback
Session Conducted per Year

12. Strategic ObjectivesStrategic Objectives Key Performance IndicatorsKey Performance Indicators
Develop Internal HR
Capabilities
Deploy HRIS System
• % of HR Employees who Develop
Individual Development Plan
• % of HR Employees who Fully
Execute Their Individual
Development Plan
• Progress of HR Portal
Implementation (actual vs. plan)
• Accuracy Level of HR Database