This section is about the tools and methods for evaluating human resources service delivery.
Scenario: Measuring HR performance at Australian Hardware
It has been eight months since Connie began to implement HR changes at Australian Hardware. Feedback has largely been positive.
In a recent audit of HR performance over the organisation, the following results were obtained:
● 85% of managers have high confidence in the ability of store HR officers in delivering services and mediating services delivered by the corporate HR centre of excellence
● 75% of managers believe HR has had a strong impact on business performance.
The following breakdown by HR service was obtained:
Service Client value
rating/10 Performance Staffing and recruitment 8 ROI = 140% Training and skills development 4 ROI = 130%
90% training programs completed on time
Performance management
9 55% appraisals completed
Rewards and recognition
8 100% at-risk bonus payments processed on time 95% employees agree that the system is fair
Process 9 98% of administrative requests completed to the requirements of the service level agreement
Communication 8 Average of 21 days from disputes being raised to resolution
90% employees engaged in communication activities to understand application of vision to job role and teamwork
Connie will need to continue to monitor HR performance on a regular basis and use the results of data gathering to continuously improve the HR system.
What skills will you need?
In order to work effectively as a human resources professional, you must be able to:
establish systems for gathering and storing information needed to provide human resources services
survey clients to determine level of satisfaction
capture ongoing client feedback for the review processes
analyse feedback and surveys and recommend changes to service delivery
obtain approvals to variations in service delivery from appropriate managers
support agreed change processes across the organisation.
Establish systems for monitoring and evaluation
It is important to take a systematic approach to monitoring and evaluating HR service delivery performance. Elements of a systematic approach include:
Determining what to measure
Determining (in advance) what and how to measure
performance. What are the targets and objectives that need to be monitored? What are the key performance indicators that will allow you to determine (in advance) the success, failure, and need to intervene? What are the triggers for intervention, that is, the performance levels that will trigger specific actions or contingency plans to keep performance on track?
Coordinating monitoring activities
Coordinating what and how you monitor in line with the needs and strategic planning of the organisation. How are the goals of the organisation promoted by the monitoring? Are you sure you are measuring the aspects of HR performance that really matter to the business?
Regular monitoring Monitoring performance of HR services continuously to ensure you have enough time to act should intervention be required.
Documenting processes
Planning and documenting approaches to monitoring
performance in procedures and planning documents such as action plans.
Integrating monitoring into organisational systems
Integrating performance monitoring with existing practices and operations. Ensure a smooth implementation of monitoring plans and cooperation of business partners.
Communicating the process
Communicating the monitoring process to involved stakeholders. Include an outline of monitoring activities in service level agreements, for example.
In order to take a systematic approach you will need to develop monitoring plans and schedules, keep records and evaluate performance data within a useful framework of evaluation.
Monitoring plans
You will need to create appropriate and realistic plans or schedules for monitoring activities. You should consider including a schedule or outline of the monitoring plan in service level agreements. Monitoring action plans should include monitoring activities, timelines, and strategies for integrating monitoring activities with existing business culture, practices processes and policies and procedures, resources and clear roles and responsibilities for carrying out monitoring activities.
Recordkeeping
It is important to enter and store performance information using an effective system of recordkeeping. HR management systems, enterprise resource management systems and accounting systems may capture and store some performance information automatically. Some types of monitoring activities such as the use of audit tools and surveys will require you to make decisions regarding proper storage and file naming. You will need to ensure you follow all organisational policies and procedures for recordkeeping. You will also need to ensure storage of performance information is in accordance with legislation such as privacy laws and ethical business practices.
Evaluation frameworks
A key part of monitoring HR delivery performance is determining what to measure and evaluate. You cannot ensure your monitoring and evaluating planning aligns with
business need if you cannot determine what kinds of measures will give you information on what sort of business performance. It is important, therefore, to work within a clear framework for evaluation.
The Kirkpatrick model
One well-known model of evaluation is the Kirkpatrick model which describes four levels of evaluation. The Kirkpatrick model was developed to evaluate training programs. The model describes four levels of evaluation:
Level 1 – Reaction
Reaction evaluation is how the learners felt about the training or learning experience. How do people feel about the training or service quality? Opinion or client satisfaction surveys often give information useful only for level 1 evaluation.
Level 2 – Immediate or Learning
Learning evaluation is the measurement of the increase in knowledge and skills after training. Test scores, skills, abilities or business capabilities objectively scored or observed. This level of evaluation does not include the application of knowledge or skills.
Level 3 – Intermediate or Application
Behaviour evaluation is the extent of applied learning back on-the-job; implementation of skills and knowledge.
Level 4 – Results
Results evaluation is the effect on the organisation or environment by the trainee. Does the business realise its financial or other goals as a result of the provision of training?
Because this model is tailored to evaluate training programs, it can be difficult to apply the Kirkpatrick levels of evaluation model to evaluating all areas of HR services delivery.
The Philips model
The Philips model is similar to the Kirkpatrick model, but it is more applicable to evaluating the delivery of HR. This model also incorporates evaluation of return on investment (ROI) 7:
Reaction and planned action
Measures the participant satisfaction (i.e. the satisfaction of those impacted by HR service delivery) with the
service/system and participants’ intentions to act in accordance with the service/system.
For example, plans to undertake the tasks that they are responsible for according to HR policies and procedures.
Learning
Measures changes in knowledge, skills or capabilities related to the HR system or services.
For example, a line manager’s gain in knowledge about how to follow procedures to fill in a ‘Request for Hire’ form.
Application
Measures the application of knowledge, skills or services in the workplace.
For example, a line manager’s application of knowledge and skill in filling out a ‘Request for Hire’ form.
7 Phillips, J. and Phillips P., 2010, ‘Measuring Return on Investment in HR a global initiative for HR strategy’, ROI Institute, viewed January 2014 <http://www.roiinstitute.net/m/uploads/tools/
Business impact Measures the costs and business output related to the HR service delivery program.
Return on investment Compares the benefits with the costs.
When evaluating the effectiveness of HR service delivery initiatives, it is important to determine in advance the evaluation tools and measures required to determine the right level of evaluation. For example, you cannot claim that a program has helped the
organisation achieve its projected return on investment by relying on data gathered from a client satisfaction survey (a tool for evaluation at the ‘reaction’ level). On the other hand, business data may be too high-level to sort out and separate the contribution that HR programs make to the bottom line. Level 1 survey data may, however, indicate a change in attitude that could indicate future business success. Such data can
supplement performance data to provide an all-round, more balanced evaluation of the impact of an HR system or service.
Let’s take a closer look in the following sections at analysing client feedback, which may include various levels of feedback, and business impact (or return on investment).
Learning activity: Establish systems for evaluation
Consider planning for implementation of HR service delivery or service level agreements undertaken in the previous section.
Plan a schedule for undertaking performance monitoring and evaluation for the next 6 months.
Include tools and strategies for gathering data.
Include performance measuring activities and performance measures to gather information useful for all levels of either the Kirkpatrick or Phillips evaluation frameworks.
Client feedback
To effectively evaluate human resources service delivery, feedback must be obtained from clients. This involves having a process for capturing both:
Ongoing feedback Requested feedback
Ongoing feedback
Ongoing feedback is feedback that is received as part of normal business interactions. It typically occurs as a result of a particular negative or positive experience that for some reason has prompted the person to provide feedback. While this feedback is not part of a formal feedback program, it is very important as it is often very specific and useful in identifying specific problems.
Case study: Deloitte Consulting HR transformation survey
Use the link below to access the Deloitte Consulting report.
● ‘From the ground up, Building an HR infrastructure to support growth’, Deloitte, viewed January 2014, <http://www.deloitterecrute.fr/sites/www.deloitterecrute.
fr/files/etude/343/fromthegroundup_hrinfrastructure_2009.pdf>.
Read the article ‘HR transformation survey’ on pages 8–13. The article discusses a survey, completed by Deloitte Consulting, of more than 150 global companies to understand those organisations’ views on human resources service delivery in the 21st century.
It is a good example of how useful surveys can be in providing information regarding the provision of human resources services. The survey has produced interesting information regarding the different service delivery models and the values those models provide across different industries.
Processes for capturing ongoing feedback include:
● providing a specific contact person for clients to contact to provide feedback
● developing and implementing a database for recording feedback to ensure that the feedback can be incorporated in formal reviews completed at a later date
● providing feedback forms to participants to assist with capturing feedback when they want to provide it rather than having them wait and remember their feedback when asked to provide it as part of formal feedback programs conducted some time later.
Learning activity: Ongoing feedback
Think of a time you have provided casual feedback for services provided to you. What prompted you to provide the feedback?
Was there a process in place for you to provide that feedback? If yes, what was the process and how did it assist you to provide your feedback?
Did you feel your feedback was captured and taken seriously? Why or why not?
What could the company, individual or department that you were providing to, done better to improve your experience as a client providing feedback?
Requested feedback
Outside of ongoing feedback, the other way to obtain feedback is to seek it out through requested feedback. This involves surveying clients to determine their level of satisfaction with the services provided. Requested feedback is typically requested at specific times, for example, monthly, quarterly, biannually or annually as part of a formal review program. It is important to remember that, when requested feedback is part of a formal review program, those providing the feedback usually want to see an outcome or next step. They want to know the results of the feedback received and what action is going to be taken with regards to that feedback. Failing to address this requirement can result in
participants not providing feedback when it is requested in the future as they see no value in participating.
The two popular methods used for surveying clients are focus groups and written feedback forms.
Focus groups
Focus groups involve meeting with small groups of clients to listen to their feedback regarding the services provided. It is a good idea to prepare some questions to prompt the discussion to ensure the value of the session for all participating. Focus groups also usually discuss solutions to issues or ways in which services could be improved.
Written feedback forms
Written feedback forms or surveys are generally distributed to a sample group or all members of a client group to assess their satisfaction with the services provided. They typically include a series of questions that asks clients to rate their satisfaction. These ratings are then tallied together to ascertain an overall client satisfaction rating. Some feedback forms also provide clients with an opportunity to provide general
comments. This allows clients to make comments about areas they feel strongly about or areas that they feel have not been adequately covered in the questions provided.
Tip: Feedback forms
It’s easy to create and distribute hard copy surveys to your learners, but there are also very simple ways to create online forms that can be embedded in emails to clients and then the data can be automatically arranged in a spreadsheet so that you don’t have to type out the data yourself. The video ‘Using forms in Google Docs’ explains how to use Google’s form feature <http://youtu.be/IzgaUOW6GIs>.
Human resources services feedback form
Please rate the effectiveness of the human resources team member in providing human resources to your business.
S tr on gly D is ag ree D is ag ree Neutr al Agr ee S tr on gly Agr ee
1. Establishes and maintains positive working relationships with the business.
2. Communicates effectively with managers and employees.
3. Delivers on commitments on time. 4. Responds appropriately to business
needs.
5. Provides practical and useful guidance and support.
6. Is prepared to take risks in the interest of the business.
7. Demonstrates strong analytical skills in diagnosing issues.
8. Effectively supports the business throughout the implementation of organisational change.
9. Takes into account both strategic and operational plans when providing advice.
10. Ensures the alignment of people initiatives with business priorities.
11. Possesses strong technical human resources skills.
12. Acts as a strong role model by upholding and promoting business values.
What are the development areas for the HR team member?
General comments/feedback
Learning activity: Written feedback forms
Assume you have already implemented planned HR service delivery options at either Australian Hardware or CoffeeVille. Develop a written feedback form to gather information from staff members that will be engaging with HR services.
Human resources services feedback form
Question S tr on gly dis ag ree D is ag ree Neutr al Agr ee S tr on gly Agr ee
(Detail any specific questions here)
Analyse client feedback
Once feedback has been obtained it must be analysed:
● Look for trends and recurring themes; is the same area rating poorly by all those surveyed or is one part of the business only rating a particular area poorly?
● Complete further investigations into those areas that show a trend or recurring theme that could be improved.
Example: JMH Insurance
The human resources manager at JMH Insurance used the human resources services feedback form on the previous page to obtain feedback from 15 managers regarding the effectiveness of the human resources team. The human resources manager then compiled the feedback using the following table.
Question S tr on gl y D isa gr ee D isa gr ee N eutr al Agr ee S tr on gl y Agr ee Total
1 Establishes and maintains positive working relationships with the business.
2 3 1 4 5 15
2 Communicates effectively with
managers and employees. 2 2 0 6 5 15 3 Delivers on commitments on time. 4 5 0 3 3 15 4 Responds appropriately to
business needs. 4 4 1 3 3 15 5 Provides practical and useful
guidance and support. 2 2 2 5 4 15 6 Is prepared to take risks in the
Question S tr on gl y D isa gr ee D isa gr ee N eutr al Agr ee S tr on gl y Agr ee Total
7 Demonstrates strong analytical
skills in diagnosing issues. 1 2 2 5 5 15 8 Effectively supports the business
throughout the implementation of organisational change.
2 2 1 5 5 15
9 Takes into account both strategic and operational plans when providing advice.
4 4 2 3 2 15
10 Ensures the alignment of people
initiatives with business priorities. 5 5 1 2 2 15 11 Possesses strong technical human
resource skills. 1 2 1 6 5 15 12 Acts as a strong role model by
upholding and promoting business values.
0 1 2 6 6 15
The human resources manager then analysed the data using the following methodology.
● ‘strongly disagree’ and ‘disagree’ summarised as ‘unfavourable’
● ‘neutral’ ratings summarised as ‘neutral’
● ‘strongly agree’ and ‘agree’ summarised as ‘favourable’.
This methodology allows the human resources manager to see what areas of services are viewed by managers as working well (favourable rating) and what areas need to be improved (unfavourable rating). The human resources manager also views those areas rated ‘neutral’ as areas that can be improved.
The human resources manager applied the methodology using the following table.
Question Unfavourable % Neutral % Favourable %
1 Establishes and maintains positive working relationships with the business.
33% 7% 60%
2 Communicates effectively with
managers and employees. 27% 0% 73% 3 Delivers on commitments on time. 60% 0% 40% 4 Responds appropriately to business
Question Unfavourable % Neutral % Favourable %
5 Provides practical and useful guidance
and support. 27% 13% 60%
6 Is prepared to take risks in the
interests of the business. 67% 13% 20% 7 Demonstrates strong analytical skills
in diagnosing issues. 20% 13% 67% 8 Effectively supports the business
throughout the implementation of organisational change.
27% 7% 67%
9 Takes into account both strategic and operational plans when providing advice.
53% 13% 33%
10 Ensures the alignment of people
initiatives with business priorities. 67% 7% 27% 11 Possesses strong technical human
resource skills. 20% 7% 73%
12 Acts as a strong role model by upholding and promoting business values.
7% 13% 80%
The human resources manager has identified that all questions with an ‘unfavourable’ rating of 50% or more require improvement. As result the following areas will be further reviewed to identify what improvements can be made to ensure a more effective service. Question Unfavourable % Neutral % Favourable %
3 Delivers on commitments on time. 60% 0% 40% 4 Responds appropriately to business
needs. 53% 7% 40%
6 Is prepared to take risks in the
interests of the business. 67% 13% 20% 9 Takes into account both strategic and
operational plans when providing advice.
53% 13% 33%
10 Ensures the alignment of people
Learning activity: Analyse client feedback
Recall the Kirkpatrick and Philips models discussed in the opening to this section. In the JMH insurance example above, what level/s of evaluation is the information useful for? Is the information provided on the feedback form useful for all levels of evaluation?
Do you think other levels of evaluation are important? Why? Why not?
How is this information useful for the evaluation of HR service delivery?
What further investigations would you undertake to get a full picture of the performance of HR service providers?
What tools, methods or performance measures would you use to gather information for business impact or ROI?
Evaluate business impact
When you evaluate human resources performance, it is important to measure and analyse the business impact of HR service delivery options. Many organisations take a balanced scorecard approach to determining the success of the organisation. Such an approach means that the needs of customers and employees as well as investor