5 HUMAN RESOURCE MANAGEMENT RISK INDICATORS

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HR Management PPT – Risk management in the field of Human Resources or Human Resources is a very important part of the company’s risk management system. This is because the performance of employees is a measure of the success of a business. Risk management in the Human Resource plays a role in recognizing the competencies of every employee in the company starting from the recruitment process.

Here are 5 of the most important indicators in Human Resource risk management that need to be known and done in your company:

5 Risk Indicators for Human Resource Management from CRMS Indonesia

1. Applicant Ratio and Number of HR Requirements
One of the risk indicators in Human Resource Management is the Applicant Ratio and the Number of HR Needs. Human resources must be able to predict the availability of potential candidates in specific jobs. This ratio can be calculated by dividing the number of applicants entering with the number of workers needed in a company. This makes a company able to anticipate and prepare for the availability of candidates for the next employee recruitment.

2. Applicants’ Variance with Stop Workers
Comparison of the number of applicants and the number of workers leaving the company contributes to risk management in the field of Human Resources. The definition of a stopping worker is with a variety of factors such as resign or retirement. By knowing this variance, companies can predict the availability of candidates in planning replacements and preparing a recruitment process plan for regenerating Human Resources (HR).

Through this variant, the Human Resource Department can also anticipate the search for candidates from other sources such as advertising or through job agents if needed. If the difference in the number of applicants and workers who stop is considered quite far, the company should also be able to approach employees by analyzing the level of satisfaction of work. From this, the company can assess whether or not loyalty and competency awards to employees are needed.

3. Support Staff Ratio
One indicator of risk in the Human Resource Management is the Support Staff Ratio. This ratio can be known by dividing the number of existing support staff with the total staff of the company. This is done by the Human Department for consideration before choosing to use outsourcing services or not in subsequent recruitment.

4. Percentage of Workers per Department
This percentage is one indicator of risk in the field of Human Resource Management. To find out the percentage value, you can compare the number of workers in each business department with the total number of workers in a given time period. The business departments referred to here include the Ministry of Finance, Accounting, Technology & Information, Marketing, and others.

5. Employee Productivity Index
With an average expenditure for workers that reaches almost 50% of the company’s operating costs, the Employee Productivity Index is one index that shows the work culture of the workers of a company. This fairly critical index is one of the Human Resource Management risk indicators that affects the capabilities of a company. Employee Productivity Index helps the Human Resource Department to analyze whether workers have worked according to their ability to make maximum contributions to the company.

To create a good work environment, risk management is needed in a clear Human Resource field. This is good in a company to ensure the realization of the company’s strategic goals and objectives.