The Workforce Scorecard is a component of a larger company-wide scorecard that facilitates the measurement and communication of human resources objectives and performance across the enterprise. Following the basic tenets of scorecard theory, KPIs within the Workforce Scorecard are used to evaluate how well employees are carrying out the internal initiatives necessary to serve their customers, how those initiatives are associated with the financial and strategic goals of the organization, and how efficiently and effectively all employees in the organization are performing. Used in this manner as an organizational and communications tool, the Workforce Scorecard supports the shift of the human resources function from an administrative entity to a key strategic partner.
The Workforce Scorecard argues that to maximize the strategic contribution of the workforce, organizations must meet three challenges: view their workforce in terms of its potential contribution rather than as a cost to be minimized (the perspective challenge); replace benchmarking metrics with measures that differentiate levels of strategic impact (the metrics challenge); and hold line managers and HR professionals jointly responsible for workforce quality and strategy execution (the execution challenge).
To make this happen, our main thesis in The Workforce Scorecard is that managers and leaders need a strategy for the business, a strategy for the workforce, and a strategy for the HR function. As a result, they also need a series of metrics and measures for each; a balanced scorecard, a workforce scorecard, and an HR scorecard, respectively.
Designing such a system begins with a clear understanding of the unique processes through which the workforce creates value in each business. The Workforce Scorecard offers a framework that identifies and measures the outcomes, behaviors, competencies, mind-set, and culture required for workforce success and reveals how each dimension impacts the bottom line. The lynchpin of this perspective is an emphasis on looking at the role of human capital from the “outside in” (or customer back), not from the “inside out” (starting with the HR function).
Some benefits of using the Workforce Scorecard are:
- Linking human resources KPIs to corporate-wide objectives using an Enterprise Scorecard approach.
- Quickly comparing current company practices to internal historical measures and external benchmarks.
- Measuring and aligning your human resource initiatives within a business framework.
- Accurately determining and tracking the composition and deployment of the workforce.
- Enabling easy access to information by distributing reporting results through the internet.
The Workforce Scorecard is part of the Recruiting, Development, Deployment, and Reward business processes.
The Workforce Scorecard works in conjunction with Scorecard and the Workforce Data Mart. The Workforce Scorecard uses Scorecard’s tools to provide a current representation of how the company is meeting its human resources objectives. The Workforce Data Mart provides details and analysis of how and why these trends are occurring.
Data flows through the Scorecard application based on a defined frequency. Transactional data is provided to PeopleSoft EPM where it is transformed using the Scorecard analysis tools. The system displays analysis results through the Workforce Data Mart to users who can use this information to analyze trends or take actions as necessary. For example, you can analyze details such as job demographics, personal demographics, and compensation.