Since 1990 HR metrics have been evolving. Since the introduction of benchmarking in the HR space professionals have been working to prove their value in the business support systems. For nearly a decade benchmarking reigned as the top measurement in the HR world. It wasn’t until the 21st century when metrics and analytics took over as the number one source of reporting. Human Resources have struggled to prove their value beyond the mundane tasks of paperwork in the hire to retire scenario.
Workforce and Business Analytics
Workforce and business analytics have been used to establish baselines, help structure, and maintain operational and company efficiencies. We’ll provide insights into this move and what it means for the future of HR and how companies can use their current data and metrics to elevate their workplace. As our world becomes more about how to measure activity it’s important for any HR professional to have a good understanding of proving their value to the company.
As HR becomes more metric driven it will be important to communicate with senior members of your organization to find out which metrics they are interested in and how you can deliver the information. Your CEO, CFO, and COO are all looking at different aspects of the business and it’s vital to tailor reports to fit their specific needs. In a recent case study from Koenig& Associatesstudied the attitude of CEOs as it pertains to the HR department and hiring.
People within a company account for half or more of a company’s expenses, but 57% of companies don’t track the impact. Understanding how effective a company is spending their money is an important aspect for any business. One of the most important reasons HR should care about metrics is because CEOs and Senior Executives care about how HR impacts business performance. No longer do companies consider HR a soft unavoidable cost, but as a department that has significant influence on how a business is run.
The Importance of HR Metrics
Metrics in HR are more then reporting number of vacancies, turnover amounts, and absentee dates. We use big data to help companies understand, anticipate, and develop strategies facilitated by HR. In order to provide value you must not only compare the results from previous time periods, but also ask important questions such as the importance of job roles filled, how long it took to fill the jobs, and how satisfied were direct supervisors with those hires. Diving into the data beyond the surface level statistics is what makes any good HR department, great. As metrics continue to evolve it’s important to understand which metrics have which benefits or negative impacts on the business. Only then will your HR department be able to show it’s true worth.
What metrics do you find most important in Human Resources?
Jessica Miller-Merrell, SPHR is a workplace and technology strategist specializing in social media. She’s an author who writes at Blogging4Jobs. You can follow her on Twitter @blogging4jobs.