HR-Controlling / Human Resource Controlling 4

Definition and Tasks HR-Controlling

The Human Resource Controlling includes planning, assessment and control of both, the performance of the employees, as well as the staff working in Human Resources. Here it is important, that on the one hand the internal structure of the company will be screened, as well as the market conditions. As usual in Controlling, a distinction is made according to plan, measure, and finally development of further steps to develop. Employees can be defined as a cost factor, value-added potential and as a stakeholder group. HR controlling ensures that competitive advantage can be developed and risks should be early identified and avoided for the company.

Its responsibilities include :  
– Ensuring a high quality reporting  
– Creation of transparency  
– Efficiency improvements  
– Determining value added of all HR measures

HR Controlling instruments

The following instruments are known in the field of HR controlling :

• Staff reports
• Performance measurement systems
• Balance Scorecard
• Benchmarking
• Controlling Competence
• Human Capital Management

I often see in practice the challenge that the reports are much too strong based on hard facts. The key figure is the absolute headcounts figure. Gladly, managers boast against the shareholders that headcounts have been reduced, or they do not grow despite sales growth. The personnel services but were simply purchased externally and partly way more expensive then it would be internally. Also I am a strong advocate of holistic approaches. I would say soft factors must be illuminated and tracked in the future even more. Areas such as employee satisfaction, fluoroscopy the skills of staff as well and incentives via bonuses and commissions are very key issues.

Organisation of HR Controlling

There are two different approaches for the jurisdiction of HR-Controlling. Either you divided the tasks as a staff function without authority, or the tasks are performed by Controlling or HR. I find the best solution in terms of a holistic controlling approach, an affiliation with the Controlling. This ensures that the reports come along in the usual corporate style. In addition, the controllers are the most accomplished, when it comes to issues such as procurement of the numbers from the systems. Undeniably , it is important that the Key Figures are regularly analyzed together with HR. Also inputs for new indicators tend to come from the HR, there are sitting the experts with the market experience and academic training.


Video HR-Controlling

As usual, it is important to me to provide – the visually controlled readers – a good video about Human Resource Controlling:


Recap HR-Controlling

It should be noted that HR controlling is unfortunately treated in many companies today still neglected. Trends indicate very clearly that HR controlling is one of the key issues in the near future. If we analyze only once the P & L of many companies, we will find that the personnel expenses usually is the largest OPEX post. However, many reportings limit but then only to the detention of the costs and headcounts. In my view this is far too little. The staff is the most valuable asset in a company and should also occupy an important place in the Reporting.

Thank you very much for your interest in this important topic.

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