The HR report to the board

One of the most important elements of any board is to ensure that the Human Resource department (HR) of the organisation is functioning effectively and operating with ethics and determination. The board have to effectively take action of this particular task, they require information on how Human Resource activities are having a direct influence on the business performance. This task is complied with difficult elements by the fact that most of the Board HR committees are chaired by people with no HR experience and knowledge. However, this is not a hard process tasks as long as the committee members are provided with the right and vital information so they can execute tasks and make decision making.

The reality about the HR department

The most utmost challenge that many organisation face today is that the Human Resources function, which is known as the most underrated duties in most organisations. As a matter of fact, most of the scandals that might cause an obstacles and dysfunctional working are mostly related with the HR department. Many internal and external stakeholders have no understanding what happens in the human resources department and are unaware of any HR-related activity. In the last few months lately, there has been stories of the exorbitant executive salaries, non payment of staffs salaries and scandals associated with the recruitment of the key staff. All these organisational issues should not have occurred if the board members and the HR members are equipped with essential knowledge and HR related responsibilities. Valdus HR department works collaboratively and effectively to ensure that the HR department is in a good health to serve the rest of the department.

However, most of the reports that have been supplied to the boards are usually narrative and definitely not supported by any factual information in most of the situations. As a matter, trends keep on changing mostly every day, in such a case, Valdus HR have this mindset that the Human Resource management and any data collection for the business activity needs to be data driven. Our Managing Director, Govindah Chinapiel, is aware of the progressive organisation that have commendable feedback in the HR department and these organization is performing effectively. As these organisations have started to move from opinion driven reporting systems to data driven areas. The main point to note that moving into the data driven areas, the information is still descriptive in nature with no big insights coming from the data.

What happened at stage 1?

At level one, the information required is mostly about opinion driven type. Reports at this stage are narrative and full of opinions provided by the human resources department staff on numerous issues. The conclusion at this particular stage is that the people in the human resources aware what they are doing and they will act proactively and ethically with the best interest of the company. In actual fact, this is not professionally correct as most senior managers, not only in HR, but in other departments, take decisions only for their personal interests. However, there are chances that the board may make serious human resources errors is they base their report above.

Stage 2: Descriptive reports

In stage two, the acquisition of descriptive reports is found. The typical board reports consist about the data like the information on the number of people on sick leave, number of people on leave, headcount and number of disciplinary cases handled, number of people trained within the workplace. This information is effective and useful but no insights are driven from such reporting.  It looks like information for noting where it is supposed to assist the board to make decision. To magnify these reports at this particular stage, it is better to go deeper than just providing the figures.  Our managing director, recommend that it is more rewarding only when instead of reporting on the number of the people on sick leave, annual leave, study leave, it is much better to focus on the company cost that is incurring due to the paid leave.  Moreover, it is better to add up the cost of covering up for the individuals on leave and loss of productivity.

Every information related with the HR department is very effective that would help the human resources department to allow a good decision making. Based on the staff costs, instead of reporting just on staff costs to revenue on a global and professional level. It is advisable to break the staff costs to revenue by level and also focus on executing staff costs as a percentage of the overall salary paid. In correspondence to this, if you have industry benchmarks for the following indicators it is even commendable.

Predictive Analytics Stage

Our Managing Director, share his views on the predictive analytics stage, he cited that the predictive stage is much effective as it allows a better collection of information of the organization and not for the human resources only. Meanwhile the date that come from the human resources department is often related about the organization performance.  In addition, many companies are now struggling to manage a workforce planning.  Those companies have no idea on how to plan employees establishment provision plan. Many organisation faced the issue of being lacking a potential of staffs they are usually under or over staffed. All these issues can be avoided if the organization adopted an effective workforce planning by using the statistical models.

In the predictive stage, the Human Resource department can forecast on the employees who are likely to be the best performance and those who are hard working also determine for the business goals before they have been hired and the board would be glad to have an acquisition of such data regarding for senior and critical roles in the organization.

Let’s discuss about the flight risk calculator

This is a Human Resource function, that help on forecasting which employees are likely to leave the organization. This business tool helps the organization to identify the situation and causes before the competent employees leaves. The flight risk can be calculated as well for the new employees who join the workplace. Our managing director mentioned that there are various in an organization where the predictive analytics can be used to level up the organization for a better performance. Not only this, but also there are other HR solutions based on your company’s resources and data that you can start to implement. One fact about the leading international companies such as Google have invested years in building up a Human Resource management system which have automatically paved the way of extraordinary success.

Now let work together to create a resourceful HR Department

Organization with different sizes, goals and located in different countries can benefit from extensive data analysis. If you have not started or given a thought to build and organize a comprehensive database for the benefits of your own companies, this is a wakeup call, to start working on this for the company incredible success and higher performance. To be noted, the prescriptive stage is the backbone of the human resources reporting. This is the stage where you can collect data about human resources policies or intervention that will level up and boost up performance of your organization before, they implemented.

If you want to construct a productive HR department our Managing Director, Govindah Chinapiel will provide you with excellent business resources. For more information contact us on +230 2610909 / 261 2901 or email us at info@valdus.net