HR metrics should not be developed in a silo or owned exclusively by human resources. To be of value, HR metrics should measure the business factors that are important to the organization and should be co-owned by HR and the C-suite, other departments, and line managers. The right or best metrics are HR metrics that incorporate the input of stakeholders and contribute to informed decision-making. From this perspective, HR metrics should be predictive and action oriented. HR metrics that do not assist organizational decision making are of little value. The issue is not the number of metrics.
Thus, the measurement of business outcomes is a critical component of the HR auditing process. Your organization’s HR analytics and metrics should help you assess the value and contribution of your organization’s human capital; should focus your organization’s attention on how human capital helps it achieve its business objectives; should help you measure and assess human capital management and employment practices liability related risks; and should help you assess individual and organizational performance.
Increasingly, senior management seeks information about how it can improve key elements of the organization – this includes human resources. At the same time, investors, lending institutions, and third-party administrators are constantly imposing requirements upon organizations that ensure resources are properly used and that results are properly reported.
Meanwhile, governmental and regulatory agencies have put employers on notice that they must create, maintain, and demonstrate procedures and activities that they are in compliance with the laws.
In this environment, organizations need metrics and measurements that are strategic, operational, and transactional. They need HR analytics that help them identify and predict future events. They need HR metrics that help them identify and monetary and non-monetary risks and help them manage revenue generation, productivity, labor costs, and profitability. Additionally, they need HR measurements that help them demonstrate their organizations level of compliance.
The failure to achieve these goals can mean lost business opportunities, may make the desired employment brand and the ability to attract and retain top performers difficult to achieve, and may result in legal employment liabilities.
This HR metrics webinar discusses the use of HR metrics and measurements in helping organizations assess these risks and discusses the use of HR related Key Compliance Indicators (KCIs) that can be used in demonstrating required levels of compliance.
Since HR metrics can assist your organization identify weaknesses and failures in its human resource management and employment practices compliance activities, your organization’s selection and use of specific HR metrics is not only an indicator of what issues it considers important, but is also an indication of your organization’s commitment to identify and ferret out ineffective or unlawful practices and processes. Thus, your organization may be scrutinized not only on the issues it chooses to measure, but also the issues it chooses to ignore.
Thus, your use of HR metrics considers both quantitative and qualitative methods and measurements, should help you assess your organization’s performance, and should provide you with data that will allow you to evaluate human capital outcomes.
This webinar identifies and discusses many of the HR metrics and measurements currently being used. It is designed to provide background material to help you analyze key metrics, help you determine the “right” metrics for your organization, and assist you use these metrics in the decision m making process.