Nicole Devine is the Consulting Chief People Officer for PBO Advisory Group. She helps companies plan and manage their HC and HR functions.
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My previous article looked at how assessments provide an overview of an organization’s entire HR function and how HR interconnects with other business systems within the organization. A properly executed HR assessment will identify gaps, isolate inefficiencies and identify strengths. It will also assess technology, pinpoint cost savings, align the HR structure with business/growth strategies and address specific issues unique to each organization. Typically, an assessment can be conducted by a third party or managed in-house.
An HR assessment is a specialized process that requires a specific approach. While assessments are limited when identifying baselines, the real deliverable is the development and implementation of an action plan based on the findings, along with measuring success. This is where you begin to move the needle.
A 6-Step Assessment Process
While each organization’s assessment will be somewhat tailored to address its specific needs and issues, here's a good baseline assessment process to ensure you're reviewing compliance, people and processes/systems.
1. Identify Objectives: What do you want to achieve? Are you trying to get a baseline for the entire function? Segments of the HR function? Assess the talent within the function?
2. Identify Approach: To choose the methodology for your assessment, consider the resources you have available (i.e., tools, stakeholder time, etc.) and whether they'll yield the results you're looking for. For example, if you're trying to assess the current level of talent on your HR team, would you need an external assessment tool?
3. Collecting/Analyzing Data: For the collection of the needed data, leverage talent from other teams to provide a balanced analysis. This is helpful if you need buy-in from members of the leadership team to put resources toward your action plan. More important than the data is the story that the data is telling. Additionally, if you're starting from scratch, this is a great way to gain baseline benchmark data.
4. Gap Analysis: Analyzing where you are currently is critical, but you also need to account for where you're headed. For example, if you're trying to assess whether your HR talent can support the planned business growth, understanding what talent you will need and where you are now will give you the gap analysis needed to develop an action plan.
5. Action Planning: Once you've identified your objectives and documented any gaps, you're ready to determine your action plan. One of the biggest mistakes I've seen during this phase is people underestimating the time it takes to make progress. At times, the magnitude of the analysis results can feel overwhelming, so knowing where to begin can be challenging. Starting with smaller goals will help you see steady wins and gain traction toward the larger initiative. Be realistic about the tools and resources you must leverage, along with what authority you have in the space to work your action plan.
6. Measuring Success: How you determine the ROI of your efforts is often the most challenging aspect. As you develop your objectives, be sure to understand what success looks like. One recommendation is to look at what's already being measured and see if you can make improvements. For example, if you're assessing the impact of implementing a new human resources information system (HRIS), look at the time it currently takes both your team and the interconnected team members (hiring manager, IT, etc.) to hire a candidate without an HRIS.
The time it takes to complete an assessment can vary. Give yourself plenty of time for each phase, so you don’t overcommit and underdeliver. There will be times when you need to pivot, so accounting for all those curveballs will be critical to your success.
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