Human resource management is an important part of business performance as they are responsible for providing assortments of workplace activities, policies and procedures, to ensure the development of skills and accomplishments of business objectives and goals. HR is also needed for all businesses – regardless of their size and structure – to help avoid legal issues and accord businesses to be employment-act friendly. And to achieve this, HR should work efficiently and effectively. Implementing ineffective HR management can lead businesses to dismantle. This is where HR evaluation should be implemented. 

What is HR evaluation?  

Evaluation means a set of planned, information-gathering and analytical activities that are undertaken to provide a satisfactory assessment over the progress of change. When implemented in HR management, evaluation can help assess and decide whether the current HR plan and the procedure are efficient for the ever-changing business culture, wrote Dr Gary McLean, President at McLean Global Consulting.  

See also: HR Challenges and Opportunities in 2020

Advantages of conducting HR evaluation

HR evaluation can also be conducted to evaluate and determine the following aspects of human resource management: 

• Determine future investment in HR
• Improve HR processes 
• Identify the alignment of HR with business strategies
• Build intellectual capital within an organisation
• Evaluate what is not effective and help eliminate it 
• Be accountable to stakeholders and ensure employee and management accountability 
• Reflect on and improve the overall climate and health of an organisation
• Avoid any vulnerable  process that might decrease company performance
• Help improve the quality of HR 
• Lead an organisation in keeping employees motivational and productive 
• Improve HR’s image within an organisation by showing how much it contributes to organisational success. 

How to do HR evaluation effectively

To emphasise again, HR evaluation is an assessment to ensure HR plan works efficiently and identify areas that need improvement. Therefore, the evaluation should cover all HR aspects, including the hiring process, employee retention, training, employee compensation, management and employee relations, practices that affect an organisation’s people, and so on.

To have an effective result, HR evaluation can be conducted annually or bi-annually. This amount of time is to account and ensure relevant results as during that period, businesses would deal with its employees, candidates, and stakeholders from the beginning to the end of their employment. You can try this exercise form (page 4 – 8) to help kickstart your HR evaluation. 

Read also: How Chatbot Helps HR Build & Maintain Talent Pipeline