HR Controlling - a Definition
HR controlling is an essential means for planning, managing, and controlling all employee-related processes. The purpose is to align the goals in the field of human resources and the general corporate goals.
The following questions are usually posing an overall starting point for HR controlling and the identification of the right key figures:
- How many employees are currently employed in the company?
- What are the corresponding personnel costs?
- How efficiently are goals being achieved?
Based on the answers to these questions, HR controlling can then be employed. Depending on the potential for improvement, the right approaches are identified. This applies to individual, team, and corporate goals.
How Does HR Controlling Work?
There are many variations to a successful implementation. However, all types of HR controlling have in common that they collect key figures and data that allow for comprehensive statements. In other words, the focus should not be solely on goals at the corporate level, department level, or individual level. Instead, it is important to identify a bigger picture and hence, a common approach that affects more than one business unit.
The following four types of HR controlling are most commonly used in businesses:
- Quantitative HR controlling: This focuses on directly measurable data, such as personnel costs.
- Qualitative HR controlling: Abstract measurements, such as employee satisfaction or evaluations of leadership behavior, fall under this category.
- Strategic HR controlling: This actively involves human resources management in the long-term corporate goals.
- Operational HR controlling: Primarily deals with recurring tasks and the analysis of costs, benefits, and the success of measures taken.
What Are the Goals of HR Controlling?
The goals of HR controlling are usually in line with the overall corporate goals and can thus look very different from company to company. However, the following overall HR controlling goals - or more so steps - can most likely hold true across industries.
- Gain Insights: To provide in-depth information about current human resource management processes and practices.
- Preparation: To assess the impact of new developments and anticipate potential future issues.
- Coordination: To efficiently coordinate personnel planning processes.
- Verification: To establish a system for constant monitoring and maintenance using key figures.
- Optimization: To optimize human resources management based on corporate goals.
A well-structured HR controlling system also makes it easier for the HR department to efficiently utilize their staff. This is because all parameters for filling open positions or distributing responsibilities are clearly documented and can be matched with the skills of applicants or employees.
What Are the Tools for Personal Control?
Depending on the company and its respective challenges, there are numerous tools to successfully implement HR controlling. A selection could like as the following.
- Employee Surveys: This tool allows for the identification of both strengths and weaknesses in the company. It provides valuable insights into employee satisfaction.
- Human Resource Scorecard: A scorecard defines Key Performance Indicators (KPIs) and objectives specifically for the HR field, providing a foundation for the process.
- Comparisons and Benchmarks: Comparisons between different locations within a company or between different companies. Comparisons can be done in four different ways:
- The Plan-Actual Comparison: Deviations from the plan.
- The Actual-Actual Comparison: Time.
- The Forecast-Actual Comparison: Predictions.
- The Actual-Future Comparison: Assumptions.
- Human Resource Due Diligence: Factors such as workflow and the prevailing culture in the company are investigated here. Human resources are analyzed in terms of opportunities and risks.