Hi Folks,

Linking performance incentive to KRAs for HR Professionals in a manufacturing industry.
Typically its easy to link incentives to KRAs for sales & manufacturing positions but for HR it is a little bit a grey area.

Can somebody help me out as how we can define the parameters to be linked with financial incentives in the following areas :

My friend has defined the following KRAs :-

• Competency Mapping of organization to be linked with processes like Recruitment, Appraisal & ISO 9000.
• Conduct Training Programs – internally & externally.
• Review & revamp the performance Appraisals of company and link it to the regular process with ownership by the Line Managers.
• Proactive recruitment of key positions by Headhunting, Attending seminars and
Networking.
• Review of all job responsibilities & tasks processes.
• Make the company- a preferred employee’s place of work.
• Initiate Employee Relations activities to motivate the employees and enhance the productivity thereby develop a happy & hardworking workforce.
• Integrated PR efforts to highlight the success story of the company in media.

If any ideas or views would be greatly appreciated.

Regards

Divya

Hello divya,

This is really good question. I would say that HR is slowly  moving towards value addition role & responsibilities which can help organization to grow towards its goal & objectives. Here are my views about KRA's for HR which can be linked to incentive:-

1. Recruitment & Selection: Recruitment & Selection should be done with in time frame (say jr. & mid. level within 2-3 months & sr. level 3-4 months)

2. Training & Development: All employees will have to go through 40 hrs of training in a year. Then, you can break up into levels (jr.,mid. & sr.) & take the critical one first. Even you can link it to appraisal in a way that 30 % employees should be able to take up next level role & responsibilities. For example employees should move to mid. to sr. level / one grade to another grade / from manager to sr. manager.

3. Employee Turn over: It should not be more than 30 % yearly.

4. Employee Satisfaction Rating through survey: Measure Employee satisfaction. It must
be 4 out of 5.

5. PMS: It must be finished on the time & bottom 5% should be recognized. Training areas must be identified. Every year, 25-30 % employees should be able to take up next level role & responsibilities. For example employees should move to mid. to sr. level / one grade to another grade / from manager to sr. manager.

6. Automation: All HR systems should be linked to each other.

7. Assessment Center/Competency Development: 20 % employees should go through Assessment Center/Competency Development every year.

8. Compensation: company should be in top 20 in terms of salary. You compare your company salary structure with the companies having same size & turnover or where your employees are going or joining from.

9. Employee welfare: quarterly picnic, monthly reward, project lunch, team lunch, loan, mediclaim, insurance, car, credit card policy for employees

All KRA's should be realistic, achievable & measured properly even you can have weekly update in the same format seeing the progress of each & every KRA's. You can also add productivity improvisation as one of the KRA. We have implement MBO at our organization where Recruitment is linked to incentive which is based on 80 % requirements to be closed on time as per the grade within the allocated budget. Likewise, you may link training, employee satisfaction rating, employee turnover etc to incentive.

Hope I am able to answer your question !

Rajasekar

I have read your mail and like to give my views on the same.

KRA can be defined in much Objective Way , may be in SMART formula as people practice

Example :

KRA 1 - Average Training Man Hrs / Employee / Year = 56 with Training Effectiveness of 4.5 out of 1-5 Rating Scale

KRA 2 : Recruitment Lead Time : 15 Days with Attrition Rate of ---- %

Attending seminers and all seems to be subjective and its only a learning process. May not fit in the KRA itself. May be a support activity for the respective KRA

Regards

Sumitha