Due to its vulnerability, the human resource has hardly any contribution to an organization, as its existence is just a mere faculty with executives struggling to prove their effectiveness. Although HR is willing to embrace HR as an equal business player, there should be scrutiny to measure its contribution to determine what success it can add to the organization as compared to other disciplines. The recent times have seen more and more organizations introduce metrics to produce catalog of HR related cost performance analysis. IT is however, not guaranteed that use of measurements will accomplish the desired goal. The need to establish a proper means of evaluating the HR will keep the HR executives and corporate decision makers on the race to establish a solution. Putting emphasis on measurement because what matters is the impact of the HR to an organization (Stephen, 2010).
Metrics only assess how well the HR function is performing such as cost per hire and turn over rates, as well as the extent to which the people activities and programs affect an organizational costs and the productivity. It is therefore clear that metrics add no profit or influence to an organizations success. In fact, it is wrong to claim metrics impart business knowledge that surpass that already within as they only contribute to the collective picture, but in the real sense their influence is actually small. The main objectives of the HR executives are to accelerate an organizations' financial gain. It is therefore obvious that tangible financial effects of HR on the business remain intact and influential in statistical reports of findings that link HR practices to business outcomes.
However, this is just in reports their actual contribution is less persuasive. The extent to which, a HR executive is informed does not really matter because they will never add value to the investment of human capital in their organization. Whether the metrics are of high quality or not there is little difference. This is because HR studies and measurements that demonstrates efficacy to the business are not able to accommodate dynamic environmental and competitive conditions and there no concise approach in which to interpret the numbers that are generated. Effective HR ought to be flexible to in order to realize additional value to the organizations income. Unnecessary attention on measurement essentially diminishes HR. This creates a tendency of the HR minimize that part of profession in which it is most unique and adds the greatest value providing expert opinion on human behavior. The field of human resource is open even to inexperienced professionals who may their way in succeed amazingly. The core focus should be on benefit investment on human resource capital.
A corporation should demand more than personnel administration from their HR executives, particularly because competitive advantage and modern times is mainly on developing, managing, organizing, and allocating human capital. The HR executives will always give excuses when it comes to contributing to organizational design, change management, and strategy development. There is a way for HR to get out of the nightmare. Business process outsourcing companies can take on HR's administrative role by handling, other issues like payroll, expert relocation and various vendor relationships. Business process outsourcing is promising as many organizations are delivering with increased success. The HR should focus on self-service solutions that are bound to benefit the organization investment on human resource capital. There excellent examples of electronic solutions such as, mobile banking, internet mail and e-commerce transactions meant to cut down labor costs. These solutions have saved the HR a lot of paper work. This is their core competency enables HR to stay on top of the best and the most efficient way to do administration. Organizations are bound to realize large profit margins focusing mainly on HR business process outsourcing (Ronald, 2008).
In modern business platform, HR business process outsourcing has improved immensely. This has helped in improvement of service levels and reduction of costs in a great way. Consequently, there as been creation of time so that HR can play the role of a strategic partner. In today's challenging business environment, the most successful Organizations will be those that are able to; measure the impact of their investment in people, manage their human capital as strategic assets, align the workforce with overall business requisitions, and use measurement to drive decisions, monitor performance and improve the outcomes (David, 2005)b.
There is empirical evidence on HRM performance linked to overall business results and with survey results indicating HR professionals' lack of a mechanism to measure performance. Despite the effect of HR practices most of HR professionals still find it difficult to show the impact of their role with the assistance of some quantified, data. Therefore, the aspect of measuring the impact of HR programs on crucial business results is not a practice to rely on. For one to be successful in HRM measurement, one significant component is the requirement for the placement of the metrics you use with the Organization's overall business and HR strategy in order to add value.
This is to understand what is important, what major business measures exist, and what change is necessary as for the HRM department. Second chief component is benchmarking the reports obtained, since measures do show what competitors are doing. Measurement show the progress made while benchmarking show performance relative to competitors. Among the metrics used in HR management, include time response, time to fill, cost per hire, new hire performance rate, new hire performance rate, new hire voluntary rate, cost to orientation, and orientation rate (David, 2005)a.