Why Utilizing HR Metrics is Important for HR Professionals

by Pete Tosh
Founder, The Focus Group

As an HR professional, it’s inevitable that you’re keeping track of some performance data within your organization. The metrics you record may be spread across a broad range of categories:

  • Workers Comp Incidents
  • Turnover rates
  • Absenteeism
  • Employee Engagement or Satisfaction

These kinds of  measures provide insights to help you operate and to indicate problems in your department’s key functional areas, but metrics can do much more. HR professionals leading the best managed HR departments across the U.S. rely on an array of HR Metrics to guide actions and improve performance. Further, they understand that the data they collect can be related directly to key performance indicators (KPIs) for their organizations. Their metrics  illustrate their contribution to organizational success.

mind the metrics graphic

For Senior Management, Metrics are the “language of business”

Senior leaders are looking for objective data. They don’t base decisions on conjecture or opinion. Metrics have become the “language of business.” Relevant metrics provide senior management with the data they need to make decisions. Increasingly, leaders and managers in every area of business are expected to operate “by the numbers” with a focus on efficiency and return on investment. Manufacturing has always relied heavily on metrics.  Increasingly, other areas of business – marketing, accounting, even customer service – are expected to measure and report their contributions and performance. This expectation extends to HR.

Lacking data that links HR performance and KPIs, it’s easy for corporate leadership to see HR as an overhead expense. Metrics provide a means of increasing the visibility and recognized value of your department’s contributions. They contribute to organizational success because data helps management to clarify their performance expectations or to set achievable goals.

Metrics Provide Internal Benefits to HR

Internally, a solid and consistent system for measurement allows your HR department to benchmark performance and to compare your organizational data with industry standards or results of best practices in other organizations. Metrics provide early warning signals and identify performance gaps. They’re mandatory for a program of continuous process improvement. Historical data can also be used predictively to forecast budgets, costs, and implications of organizational change.

Which HR Metrics to Choose?

It’s easy to see the importance of a solid array of HR metrics, both to your department and to the success of your organization. Key to the impact of your effort is knowing which measures to choose and how to use and present the data you collect.

To learn more about the value of HR Metrics, you’ll want to attend the last workshop in Georgia Employers’ Association’s HR Certificate Series. Utilizing Metrics to Illustrate and Improve HR’s Contribution to Your Organization is scheduled for December 9 in Macon, from 9AM to 12:15 pm.

Topics to be covered include:

  • Examining the benefits of utilizing HR metrics
  • Identifying what to measure
  • Utilizing 5 categories of HR metrics
  • Applying multiple HR metrics formulas
  • Implementing a HR metrics dashboard
  • And much more

You can find further information about the workshop on the HR Certificate Series page and online registration is available.