HR related KPIs that measure sustainable efficiency and productivity in retail
Syväjärvi, Sini (2016)
Syväjärvi, Sini
Metropolia Ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201704174831
https://urn.fi/URN:NBN:fi:amk-201704174831
Tiivistelmä
The purpose of this study was to define which HR related KPIs would really measure sustainable efficiency and productivity in retail. The interest to the subject rise from the authors own personal interest and both current and previous responsible HR roles in retail companies. The case company is a global travel retail operator at Helsinki Airport. The company consists on local, divisional and global organizational levels. Just recently a new set of global HR related KPIs was presented and the reporting of these KPIs was unified. The author’s assumption was that these KPIs might not necessarily be those which measure sustainable efficiency and productivity.
Qualitative research methodology was utilized in this study. The qualitative research data consisted of two semi-structured deep interviews of HR Directors in other service industry companies: Kesko Oyj and Are Oy. Besides those also Metroauto Group Oy was included in the comparisons based mainly on the author’s own personal experience of this company.
The results of two deep interviews emphasized that choosing the right set of KPIs is at least partly industry related. Retail in its all forms belongs to the service industry. People are providing services to other people and eventually the end user or the final customer is defining the company’s value. Also the company’s internal operations are chain of internal services provided to the next link in the chain. Also internally people are providing services to other people. Therefore HR related KPIs are important in trying to define which factors affect the most to the company’s success. The interviews showed that management and leaders on every level of the organization should follow also such KPIs that monitor feelings and perceptions of people, both of the customers and the employees.
The author recommends that BSC model could be utilized in the case company to keep HR related measuring in balance. To every corner of BSC can be found KPIs where people are involved. Those would be valid both on the local and divisional level. On the group level it is essential to define just few strategic HR related KPIs that can measure the future success of the company. By doing that the value of human capital would also be recognized.
Qualitative research methodology was utilized in this study. The qualitative research data consisted of two semi-structured deep interviews of HR Directors in other service industry companies: Kesko Oyj and Are Oy. Besides those also Metroauto Group Oy was included in the comparisons based mainly on the author’s own personal experience of this company.
The results of two deep interviews emphasized that choosing the right set of KPIs is at least partly industry related. Retail in its all forms belongs to the service industry. People are providing services to other people and eventually the end user or the final customer is defining the company’s value. Also the company’s internal operations are chain of internal services provided to the next link in the chain. Also internally people are providing services to other people. Therefore HR related KPIs are important in trying to define which factors affect the most to the company’s success. The interviews showed that management and leaders on every level of the organization should follow also such KPIs that monitor feelings and perceptions of people, both of the customers and the employees.
The author recommends that BSC model could be utilized in the case company to keep HR related measuring in balance. To every corner of BSC can be found KPIs where people are involved. Those would be valid both on the local and divisional level. On the group level it is essential to define just few strategic HR related KPIs that can measure the future success of the company. By doing that the value of human capital would also be recognized.