Hr deliverables should be aligned with HR architecture. The question here arises that how HR system, such as rewards, work organization, competencies and other factors should be structured to provide the HR deliverables. The figures provide the details that how a properly aligned HR system creates HR deliverable. The next step is to create the strategic measures that can support the HR objectives. Measures of HR deliverables are important to measure HR firm performance relationship. The correct HR performance drivers and enablers are very important to be chosen for the success. The strategy should be applied in the effective way. Some metrics have been developed by the Saratoga Institute in United States. These metrics are considered as the calculation of the bottom line value, which have human capital contribution to the organization. These metrics are:
Revenue Divide by total FTE (Full time equivalent)
Voluntary Separations divided by headcounts
Human capital value added
Human capital return on investments
Total compensation revenue percentage
Total labour cost revenue percentage
Total training cost divided by headcounts
Cost per hire
In the HR cost for hiring, the cost is also included for orientation, start-up, employee efficiency, lost revenue opportunities, and internal waste caused by the workforce fluctuations.
In building the HR scoreboard, the HR professionals may choose too many metrics or the wrong metrics; such situations can be avoided by focusing on those measures that are helpful in defining the HR deliverables within an organization (Campbell, Coff & Kryscynski 2012). The deliverable are different in every organization. The metrics should be divided in two categories. First is core metrics, which do not have direct impact on organization’s strategy implementations. Second is strategic metrics, which have direct impact on the HR deliverable.
Thus, it can be said that HR scorecard have been a very important tool for the HR professionals and for achieving excellence in HR operations sustainable human-capital-based advantage (Kryscynski, & Ulrich, 2015).