Tips for Effective Implementation of the New ANSI HR Standards

HR Resource
February 18, 2013 — 1,954 views  
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The American National Standards Institute (ANSI) has given its approval to two new HR standards that were developed by The Society of Human Resource Management (SHRM). These HR standards are the cost per hire standard and the performance management standard. Implementation of these new standards will have a profound effect on the working methodologies of organizations.

Determine Employee Recruitment Costs

It’s quite tough for organizations to reach upon a common ground that will determine the recruiting cost of employees. This issue can be solved with the help of the new cost per hire standard proposed by SHRM. This standard can be used to evaluate the economic value of the effort which is taken to fill up a position in a company. This is made possible with the use of a specially formulated algorithm known as the CPHI or Cost Per Hire Internal. The CPHI is defined as the ratio of the total money spent to the number of people who were hired in a specific time period.

This CPHI includes factors like addressing the organization’s specific requirements and work culture, which help in determining the recruitment cost. Factors like salaries, and benefits of the employee, and employee training costs are not taken into consideration here.

Compare Between Organizations

The newly approved ANSI HR standards will help in the comparison between organizations. This is made possible by the use of a metric which is known as CPHC or Cost Per Hire Comparable. This standard is defined as the sum total of the internal and external costs to the total number of hires done in that particular period. The comparison will allow organizations to rectify their working methodologies, if there are any.

Analyze the Recruiting Cost

To evaluate the performance of a company, it is necessary for one to analyze the recruiting expenses. This is possible with the help of the RCR or Recruiting Cost Ratio metric that is introduced in the new HR standards. This will help organizations to normalize the recruiting costs based on compensations as a proxy for the comparative value of new hires to the firm.

Review Work Performances

The implementation of the new HR standards by organizations will provide the employers with a uniform way to effectively evaluate the work performance of their employees. This can be done by collecting information about the employee’s performance and contributions to the company and assessing its impact on the company. The employer should also consider factors like profitability of the product that is produced and the dollar volume of sales.

A rating scale, either numerical or descriptive, can also be introduced to differentiate the performance among employees. In this way, the work performance of employees can be analyzed thoroughly and corrective steps can be taken whenever required.

Implement Performance Improvement Plans

The new ANSI HR standards provide employers with guidelines to implement employee performance improvement plans. This can help to sort out the persistent performance problems of the employee. It can also help to improve the work performance of an employee who has been recently shifted to an entirely new role. But, if the employees are covered by any union labor contracts, then the employers should see to it that the performance improvement plans that are applied are in compliance with the terms of the labor contract.

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