Evaluate Your HR Function: 25 Key Questions

Here’s a list of 25 key questions to evaluate your human resources function. Use the list to set objectives and expectations; put in place specific measures for the important ones, and track progress. Begin by discussing the list, where HR is today and where you want it to be in the future.

Financial Questions

  1. What is the cost of turnover? Is it too high? Too low?
  2. Does a policy exist establishing the organization’s position regarding compensation competitiveness?
  3. Are compensation and benefit plans market competitive and cost competitive? How do you know?
  4. Is the HR overall budget in-line with your industry? With benchmark companies?
  5. What is the return on investment in people? Do you have a way to measure it?
  6. Does HR have a process to review and assess exposure to risk across all people-related topics?

Customer Questions

  1. Do managers view HR as a value-add or an impediment to getting their work done?
  2. Do employees view HR as helpful, courteous, and supportive, or the opposite?
  3. In what ways does HR contribute to making your organization a great place to work?
  4. In what ways does HR positively affect employee engagement in the business?

Strategic Questions

  1. Does HR understand the business strategy and has it defined specifically how it can help implement and achieve the strategy?
  2. Does the organization have the talent it needs to be successful in the future?
  3. What plans and processes are in place to make sure that the right talent will be ready at the right times?
  4. What employee groups are most important to achieving the strategy? Does HR have specific plans to ensure this group will be on-board, engaged, and rewarded?
  5. Does HR operate with an integrated model to improve talent across the organization, or is the approach piecemeal?
  6. Does the organization have the leadership bench strength needed for current and future challenges?
  7. How is HR positively influencing customer acquisition, service and retention?
  8. How is HR investing in its own capabilities?

Operational Questions

  1. Are HR’s overall response rates meeting line management’s expectations?
  2. Do staffing processes result in timely hires at the right levels of quality?
  3. Does HR provide managers with information and training they need to manage their people?
  4. Is HR eager to listen to line management requests?
  5. Does HR make specific service level agreements with line managers? Do they work collaboratively to achieve objectives?
  6. Does HR utilize technology to improve service levels?
  7. Does HR utilize technology to provide key information and data?