HR Index: Get your firm on board
August 4, 2011 | IHRM Journal
Every year, the Human Development Index gives a simple yet comprehensive platform on which the development of Nations can be measured. Similarly Forbes magazine developed an index to determine the wealthiest people in the universe while Fortune magazine produces a list of the biggest companies on Earth as well as the best company to work for. The HR Index is to Human Resources what these Indices are.
It will give a simple and comprehensive picture of the human resource levels of organizations. It will make it easy to assess an organization based on the impact, effectiveness and quality of their human resources and not on the basis of size or turnover as a lot of other indices do.
The HR Index will be calculated using data from across 12 major sectors including manufacturing, ICT, financial institutions, transport and aviation, government and parastatals. Others will be non-governmental organisations, construction, agriculture, health, retail chains and the hospitality industry. The indices that will be used to calculate the HR Index are as follows:
1. Internal Communication Index
2. Retention and Mentoring Index
3. Innovation Index
4. Attraction Index
5. Demographic Index
6. Onboarding Index
7. Training Penetration Index (TPI)
8. Remuneration index
9. Work Life Index
10. Enterprise Technology Index (ETI)
1. Companies Subscribe to the valuation
2. HR Managers are taking through the internal valuation process and given a HR Index valuation KIT which will include an HR Index guidebook as well as a DVD on the Index
3. Participating Organizations make monthly performance returns to the Institute
4. IHRM Auditors make spot checks on participating organizations to appraise compliance – especially the Emotional Intelligence factor
5. Data is analyzed by Index Analysis team
6. Results are made known at End of year HR Gala Night and HR Yearbook for the next year is launched.
1. Increase marketability and profitability of the organization. The HR index will be a stamp of certification and excellence that will raise the overall value of the company in the eyes of the public.
2. Greatly improve multi level communication within the organization thereby improving overall efficiency
3. Reveals at a glance the weak links in the organizations HR
4. Has the potential to save the organization money on train ing that has no impact
5. Raises the standard of HR in the organization
6. The HR Index can become a status symbol as well as a marketing point for the organization especially if they score high on the index. An example of this is the status accorded to the Fortune 500 companies or Fortune Best Places to work in America survey.
7. The Index will promote best HR practices among companies thereby raising the level of HR in the country
8. Greatly raise the profile of the IHRM as this index (The first of its kind) will become a benchmark not only in Kenya but around the world.