Measuring HR Effectiveness

HR's effectiveness can no longer be measured according to non-specific, non-quantifiable, “soft” assessments. Instead HR must be able to unequivocally demonstrate the effectiveness with which it is executing its various roles and the degree to which it is meeting the needs of its clients.

This discussion leads us to a critical—and foundational—distinction between “effectiveness” and “efficiency.” Effectiveness is the degree to which carefully established (and, in our case, strategically aligned) goals are met. Efficiency, however, is a ratio of “outputs” to “inputs.” Another way of putting it is that efficiency is “doing things right,” while effectiveness is “doing the right things.”

It's quite possible, therefore, ...

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