What Are HR Metrics?
HR metrics are operational measures to gauge how efficient, effective and impactful an organization’s HR practices are. HR metrics essentially give us a way of qualifying the health of our organization, and, to that end, HR metrics are now different. These metrics are good for measuring how the HR function is doing as a whole and also how the HR team is leveraging the people in the organization to maximize the performance of the company.
In this competitive technological world, it is extremely important to measure and analyze the value of your employees. Business intelligence enables you to use fact-based decision making for development and management of your human resources. We have studied and researched on various HR Metrics and effective ways to use the best HR Metrics. We have outlined a few of the best practices and key properties of successful HR metrics.
How To Effectively Use HR Metrics
1. Keep Your HR Metrics Focused:
If your business is to report on too many things, you often lose focus on key performance indicators (KPIs). Determine the key drivers in your business to focus on measuring what truly is happening with your employees.
2. Use Metrics To Drive Executive Action:
The objective of reporting on key metrics is to persuade the executive team to take desirable actions on areas of improvement in favor of the business that may need attention. Ensure to clearly measure how your employees are emerging and becoming more efficient.
3. Align Reports With Your Strategic Goals:
You need to be deliberate about toning your analysis with your business goals. It is important to demonstrate progress and to identify grey areas early so that they can be rectified before becoming critical issues for the business.
4. Accurate Supporting Data:
Before setting up key performance indicators (KPIs), you need to ensure that you are able to access right and accurate information to use for reporting.
5. Share Your Reports:
To ensure that your reports are an actionable and meaningful reference, get them at a common place where the stakeholders can easily access them and utilize them as a true reference.
6. Ask The Right Question:
To ensure right HR metrics we should perform Why analysis. By doing so, you would be able to identify how far-reaching your decisions are. Asking ‘WHY’, helps you to drill down the problem and come closer to the solution.
7. Collaborate With All Departments:
It’s important to collaborate with stakeholders in all the departments to collect the needed information to develop meaningful measures. Including HR data into business strategy requires proper functioning of HR Metrics. As an HR Manager at world hunger organizations, you can try running a pilot program with a function whose manager has an interest in data mining. This exercise could be for improving sales performance or reducing turnover in an IT company. It’s important to create a case study that proves you can solve an issue in a measurable way.
8. Never Compromise On Data Quality:
One should always find data that meets the ‘CARE’ criteria. Always include information that is:
The data used for HR metrics should be measured progressively over time.
Information should be precise, with few or no errors in recording it.
Your HR metrics must be a dependable proxy of what you’re ultimately trying to assess.
The cost of data mining must be negligible.
9. Ensure Proper Training Of Your Team:
Whenever you want to introduce new technology to your team, ensure that it is followed by proper training. Using the latest technology is only good when it’s used by properly trained resources. Proper training of your team on the program you are going to use day in and out is the key to its success. Ensure that you have a proper orientation in place to train your team on how to use the software. These training sessions should have an open-door policy to answer all the questions and provide extended help. You should also create a robust plan for new hire during on-boarding so they can cope up and easily learn the system as quickly as possible.
Here we have listed few best HR Metrics practices which you should definitely implement in your business strategies. You may also consider using Real-Time Reporting Software, Incorporate Biometric Timekeeping, Cascade benefits with employees, Utilize Alerts, Track and reward the performance of the best employees you have. While selecting the best HR Metrics, you should be focused on the most meaningful metrics. Always remember to measure the intangible aspects of the workplace. Understand what’s important and be insightful.