Best practices in HR metrics
“Not everything that can be counted counts, and not everything that counts can be counted.”
Why are human resources metrics so important?
- To demonstrate how HR programs are supporting organizational goals
- To inform effective, holistic business decisions
- To optimize HR programs
Measuring efficiency vs. effectiveness
HR analytics typically fall into one of 2 areas:
- Measures of efficiency
- Measures of effectiveness
Both are vital to impactful HR programs.
Efficiency metrics for HR programs help to measure:
- cost effectiveness
The goal is to help HR optimize their programs.
- Metrics are tied to the organization's strategy
- Demonstrate how people programs are contributing to the achievement of organizational goals and results
The goal is to help managers and leaders make better decisions and improve performance.
3 critical metrics focus areas
According to HR expert Cathy Missildine-Martin, metrics in these 3 areas are critical for all organizations:
- Goal alignment
- Employee performance
- Quality of hire
Gathering data is only the start
Best practice human resources analytics involve:
- Gathering robust, reliable data
- Analyzing that data for trends, changes, interrelationships, etc.
- Researching the root cause or contributors to data
- Recommending actions
- Measuring results
Metrics should lead to insight
Your HR metrics should lead to insight that drives better decision-making and business results.
Articles on HR metrics
HR analytics expert Cathy Missildine-Martin answers some of your most common questions about HR metrics.
Read how the real value comes in translating metrics into actions that advance the strategic objectives of the organization.
How CarVal Investors has created a high-performance culture through its performance management strategy
Discover how investing in talent management can improve your bottom line with this engaging infographic for financial services organizations.
This reference article can help you formulate your talent management strategy so you know which metrics are vital to gather and analyze.
Explore ways to use the HR metrics and data you collect about and through your talent management processes to review and optimize them for efficiency.
Learn how to increase inter-rater reliability and ensure the performance ratings and scores you gather in your talent management process are well calibrated and fair.
Learn the basics of the balanced scorecard and the importance of human resources and talent strategy mapping, to ensure success in each area.
Downloadable resources on HR metrics
Learn how to put talent management metrics in the context of those that will help you drive business decision making and organizational success.
Dr. Christopher Lee explains how to develop and use the right metrics to prove HR's impact on the bottom line.
Five steps to a more intelligent HR function - measuring, analysing and improving people performance
Bernard Marr explains how to design a more intelligent HR function, and shares practical examples of innovative HR indicators that deliver tangible business results.
Cathy Missildine-Martin explores the need to shift from efficiency tracking metrics to more analytical strategic metrics that truly support effective business decisions.
Dr. Katherine Jones, looks at the top five things HR leaders can do to ensure success using integrated talent management, including making your metrics matter.
HR metrics success stories
At NEOB, they're using metrics to more effectively align training and development programs, and measure their impact.
Read how SNC-Lavalin is using HR metrics to better understand the depth and breadth of their talent pool and drive engagement and retention.