The HR Performance Health Check

Our work in HR Performance is about creating an intense focus on the few things that matter most for the organisation to achieve and maintain competitive advantage.

In our experience HR departments tend to evaluate their performance in one of two ways. The first way is to see success in terms of the design and or rollout of HR processes, e.g., Restructuring Projects, Performance and Salary Review, Engagement Survey, Succession Plan discussions, launching Diversity initiatives and the like.

The process is not the product.

In the second way, HR evaluates its performance as a partner in the business in terms of the outcomes of these processes. So how do these HR teams determine if their work is positively impacting business performance?

In working with HR Leaders to build a powerful people performance agenda the following checklist helps to start the conversation.

Take the HR Performance Health Check.

Below are 12 markers of HR Performance. How many times can you say “Yes”? (and “I’m not sure” equals a “No”).

1. 1. The organisation is comfortably meeting the expectations of its stakeholders.
   2. The organisation is best in class in its product offering, and/or its customer engagement and/or its operating efficiency.
   3. One or both of the above don’t apply yet 80+% of employees are performing to expectations.
   4. All critical and/or key value-add roles are occupied by a high performer.
   5. The turnover of high performers or people in critical roles is lower than the average rate of turnover.
   6. The people in the organisation are better or more capable than those at the competitor.
   7. The organisation is largely self-sustaining, with over 90% of senior roles filled internally.
   8. The organisation spends more on building internal capability than on external hiring costs like recruiter fees or TA contracts.
   9. HR actively shapes future capability needs, developing and recruiting with a five-year view in mind
   10. Open roles are filled directly from the succession plan — because ‘Ready Now’ means ready now.
   11. The diversity of the high performer / high potential / key talent pool reflects the organisation’s DEI aspirations.
   12. The approach to assessing and rewarding performance is a sophisticated, multi-dimensional process.

Put your results in perspective.

Based on our experience here’s a guide to interpreting the effectiveness of HR performance.

• Less Than Four: It is probably time to review the alignment of HR to the business.
• Five to Eight: You are average, no better or worse than most. Is that good enough?
• Nine or More: You have a robust HR performance agenda. Keep it up!

If you’d like to have an open-ended discussion to proof test your HR Performance, get in touch. We’re always happy to help our clients and potential clients think through options and opportunities

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Justin Miles

Manager Partner, Melbourne at Generator Talent

Justin is the Managing Partner of our Melbourne office, an outcome focused leader with a track record of driving business performance through proven talent and organisation development practices. Justin’s methods and skills have been shaped by working with performance oriented leaders in great companies including PepsiCo, The Campbell Soup Company, Diageo, Rip Curl, Fonterra and Wesfarmers, in Australia, the USA and Latin America.