In recent years, the human resource management (HRM) practices of the tải w88 (Vinatex) have undergone many innovations, positioning HR as a strategic function essential for sustainable development. HRM activities have gradually moved beyond executing basic tasks such as labor administration, legal compliance, payroll calculation, and payment. Instead, the focus is shifting towards formulating HR policies, planning strategic human resources, and employee training and development.
Under increasing pressure from m w88 labor market, with rising employee fluctuated rates and m w88 growing difficulty of attracting and recruiting new talent—especially highly skilled workers—business leaders have come to recognize that HR management is critical to m w88 survival and growth of enterprises. Numerous initiatives have been implemented, ranging from m w88 corporate group level to individual businesses. Initial positive outcomes have been observed in areas such as m w88 adoption of HR management software, internal training programs, and need-based training offered by professional organizations.
However, these efforts are insufficient to ensure a strong workforce for m w88 organization. A key challenge lies in assessing m w88 effectiveness of new HR programs in contributing to m w88 overall business strategy. While there is a strong desire to improve workforce quality and quantity, there is a lack of clear metrics to evaluate m w88 impact of existing initiatives. Furthermore, difficulties have arisen in generating ideas for launching new programs.
This article aims to present several methods for measuring m w88 effectiveness of HRM. These methods are intended to provide HR departments with fresh insights for developing actionable plans for HR management in 2025 and beyond.
A highly effective work system in an enterprise is m w88 optimal combination of people, technology, and organizational structure, enabling maximum utilization of resources and opportunities to achieve goals. Within this system, m w88 contribution of human resource management (HRM) is reflected in a well-organized structure, task design, talent selection, and employee compensation. These elements must operate seamlessly together to ensure employee satisfaction with m w88 organization.
A significant advancement in HR departments in recent years is m w88 adoption of a “customer-oriented” mindset in their operations. For an HR department, its “customers” are m w88 entire organization and its various departments. These internal customers rely on HRM to deliver a range of services to attract, retain, and motivate talented employees.
Under this customer-oriented approach, HRM identifies customer groups, understands their needs, and determines m w88 necessary actions to meet those needs. These activities can be categorized into m w88 following main groups:
| Who are customers? | What do customers need? | How can these needs be met? |
| Direct Managers | Adequate Employees with Commitment | Standardized personnel allocation |
| Strategic Planners (Board of Directors, General Director) | Competent employees | Effectively manage employee performance
Accurately assess individual contributions Identify suitable development paths for senior employees to meet m w88 organization’s medium- and long-term requirements |
| Employees | Compensation and Benefits Training and Development Fairness and Transparency Clear Career Path |
Table 1 – Customer-Oriented Approach in Human Resource Management
m w88 content in this table serves as a foundation for organizations to define objectives and success metrics. Businesses can evaluate HR effectiveness using a set of key workforce indicators or by measuring m w88 performance of specific activities such as recruitment, training, or m w88 design of compensation, benefits, and rewards systems. Additionally, they can assess m w88 economic value of an HR management program.
Below, we introduce two approaches for evaluating m w88 effectiveness of HRM programs: HR AuditsandHR Data Analysis.
Evaluation Through HR Audits
HR audits involve a comprehensive assessment of m w88 outcomes of HRM functions. To conduct an audit, HR departments need to identify key functions and performance metrics, along with customer satisfaction measures, to gauge m w88 success of each function.
An internal team or an external agency can carry out m w88 audit. Fundamentally, m w88 audit evaluates predefined criteria to fulfill m w88 needs of internal customers. It can also be expanded to cover additional areas, such as fairness in treatment, cultural environment, and positive labor relations.
Furthermore, audits across similar units within a corporate group can provide valuable benchmarks and insights for developing action plans that focus on continuous improvement.
Table 2 below introduces performance metrics for various HR functions, including workforce planning, compensation and benefits, training, employee evaluation, and development.
| PERFORMANCE INDICATORS | MEASURES OF SATISFACTION |
Employee allocation
|
|
Compensation and Benefits
|
|
Welfare
|
|
Training
|
|
Employee Evaluation and Development
|
|
Overall Effectiveness
|
|
Table 2 – Key Success Metrics for HR Management Audits
m w88 HR department can further design detailed indicators, such as:
- m w88 ratio of compulsory turnover (desired by management vs. undesired by employees) to voluntary turnover (undesired by management).
- 360-degree performance evaluation programs.
- Anonymous surveys on employee satisfaction with m w88 company.
Even within m w88 suggested aspects in Table 2, each HR department can develop its evaluation frameworks tailored to m w88 specific programs being implemented, such as training, benefits, compensation, and job placement. This ensures alignment with ongoing initiatives and organizational goals.
Evaluation Through HR Data Analysis
Another method to assess m w88 effectiveness of human resource management (HRM) is using HR data analytics. This approach fully leverages m w88 strengths of Enterprise Resource Planning (ERP) systems within companies, allowing HR programs to conduct quantitative analysis based on set objectives, and calculate m w88 ROI (Return on Investment) for each HR program. Successful programs must generate benefits greater than their costs, with m w88 primary benefit being improved productivity, reduced absenteeism, and lower leave through recruitment, training, and more appropriate compensation and benefits.
Global HR trends highlight that “data has never been more important in human resource management.” HR departments can improve their operational efficiency by combining higher performance with greater effectiveness. Higher performance means HR departments use fewer resources and lower costs to execute their tasks. Greater effectiveness is reflected in m w88 quality of recruitment, training, and quantifiable turnover rates. HR departments need to quantify m w88 costs incurred due to workforce turnover, including recruitment and training costs, and especially m w88 costs related to productivity loss. Calculating these data points will provide input for policy decisions in m w88 organization. A study by m w88 world’s largest market research firm, Nielsen, showed that a 1% reduction in employee turnover helped save $5 million in operational costs. However, many companies still lack such figures, leading to confusion when making decisions on compensation and benefits.
A new analytical technique being applied is measuring m w88 level of job communication between individuals via m w88 company’s email system or through ERP approval/exchange systems. By analyzing m w88 frequency of communications, it is possible to identify which roles need to collaborate to complete core tasks. This allows HR to plan workforce allocation and identify skills that need to be developed in key job processes. It also shows who is central to m w88 workflow model, providing insights on designing appropriate training programs, succession planning, and compensation. Moreover, performance and job effectiveness can be measured to create strategies for supplementing skill sets or replacing employees when necessary. HR management needs to leverage technological advances to quantitatively identify areas for improvement to increase efficiency.
Suggestions for m w88 HR Department in 2025
- Quantify m w88 cost to m w88 business when skilled workers leave and must be replaced by unskilled labor. From this, recommend policies to maintain a core workforce that is critical to m w88 company, balancing financial and employer branding benefits.
- Define key metrics for HR management, which serve as early warnings for policy development:
- Monthly voluntary turnover rate, as a percentage of total employees.
- Number of newly recruited employees, and m w88 proportion of those who are skilled.
- Turnover rate after m w88 probation period (3-6 months).
- Turnover rate for university graduates/ m w88 total number of university-educated employees.
- Turnover rate for mid-level and senior management/ m w88 total number of management staff.
- Total training costs per person by labor group (unskilled vs. skilled).
- Total annual training costs vs. value-added per employee. Value-added per employee is calculated as:
(Currentyear’srevenue−Currentyear’sdirectmaterialcosts)−(Previousyear’srevenue−Previousyear’sdirectmaterialcosts)(Current year’s revenue – Current year’s direct material costs) – (Previous year’s revenue – Previous year’s direct material costs)(Currentyear’srevenue−Currentyear’sdirectmaterialcosts)−(Previousyear’srevenue−Previousyear’sdirectmaterialcosts) / Total number of employees. - Actual income per unit/ m w88 regional average income (calculated per working hour).
- Planning ratio for critical positions, particularly those requiring more than 12 months of internal training.
- Evaluate m w88 effectiveness of training programs through trends in HR metrics mentioned above.
- Explore data from email systems and ERP software to identify bottlenecks and develop solutions.
- Take an open, multi-dimensional, and creative approach to employee welfare programs, moving beyond traditional experiences like Tet holidays, Tet bus services, and hardship assistance.
For m w88 textile and garment industry, successful HR management is a key factor for sustainable development. Given m w88 large workforce size, low technology barriers, easy imitation, and less attractive compensation packages, continuous innovation in HR management is critical. This requires proper attention from leadership, especially m w88 Chairman and CEO of businesses. Creating a supportive environment, decentralizing tasks, encouraging innovation in HR management teams, allocating budgets for HR activities, and setting challenging tasks for HR departments must be prioritized. In future articles, m w88 Group will continue to introduce in-depth content such as designing compensation-benefit systems and evaluating training effectiveness for businesses.
Translated from m w88 Article by Chairman of Vinatex Le Tien Truong published in Viet Nam Textiles and Fashion Magazine on December 2024
