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Human resources metrics are a very important tool in measuring efficiency

HR metrics are often overlooked or underrated in many organizations. This is a mistake, because HR metrics are very important in assessing the efficiency of the HR policies, programs and endeavors. At the heart of the idea of HR metrics is that whatever is taken up for assessment or implementation has to be measurable. As in any other area of management, HR too has to go by the idiom that what cannot be measured cannot be managed.

The ability for being quantified or measured is something that gives an indication of how effective HR metrics are, because subjective or personal assessment or evaluation is of little use. Different HR managers could have different perspectives about an HR initiative.

HR metrics encompass all aspects of the organization

So, what is the basis of HR metrics? The basis to drawing up the right HR metrics is to first understand the organization and its business thoroughly. HR metrics have to be framed after completely taking factors such as the business objectives, its strategies, and its imperatives into consideration. The risk and the opportunity the business faces have to also be factored in when creating HR metrics.

The important learning that comes out of this point is that HR metrics are not created in isolation. They are a result of understanding of the various departments. They need to be comprehensive and have to be a product of proper interaction and comprehension of all the aspects of the business. HR metrics have to thus be created solidly and should be well-rounded.

The inputs of all the stakeholders have to be taken into consideration to help HR metrics serve their purpose of fostering decision-making. Another important element of HR metrics is that they should not just be about spelling out of intentions. If no actions come out of these pronouncements and intentions, they will remain only on paper and be of no effective use.

The number of metrics is not important

Yet another point of HR metrics is that it is not important for HR to frame a huge number of HR metrics. HR metrics, since they are more than just a statement of intent, have to be action oriented, leading to fulfillment of goals set out in them. So, it is important for HR to conceptualize and create HR metrics that are practical and achievable. Just creating a huge number of HR metrics with little accountability or ability for accomplishment will be futile.

The important purpose of HR metric is to help understand how human capital in the organization can be channelized and utilized to help the organization reach its goals in relation to the business and hiring practices the organization employs. The way it identifies and prioritizes its HR metrics is an indication of what the organization considers as its most important objectives. HR metrics should be designed in such a way that they lead the organization towards attainment of these objectives. This is the true test of the effectiveness of HR metrics. It should lead to inputs or pointers that help the organization achieve all that it sets out to.

Required to meet regulators’ and investors’ expectations

More than anything else, there is considerable pressure from governments and regulatory bodies on managements to put in place policies that are compliant with the law. Investors and funders also want to be satisfied about how their investment is being utilized to help the organization show results that lead to enhanced ROI. A properly drafted set of HR metrics is a great means to help organization achieve this and convince investors, government and the regulatory authorities of the ability of the organization to meet these goals, as HR metrics are an objective and unbiased set of measures that assess and increase organizational effectiveness.

Good HR metrics can cover all aspects of the organization, including but not limited to monetary and nonmonetary risks, the effectiveness of the ways of generating revenue and increasing productivity, while reducing costs.

Complete understanding of HR metrics

A webinar from TrainHR, a very popular provider of professional trainings for the HR industry, will give an in-depth understanding of HR metrics. Ronald Adler, the president-CEO of Laurdan Associates, Inc., a veteran owned, human resource management consulting firm specializing in HR audits, will be the speaker at this session.

Attendance at this webinar will help participants gain insights into the many aspects of HR metrics. Please register for this session by visiting .

At this webinar, Ronald will cover the following areas:

  • Gain an understanding of key HR metrics
  • Be able to identify and assess the strategic and operational impact of HR metrics
  • Learn the role of metrics in measuring and communicating value
  • Review the basics of using HR metrics in assessing human capital related risks
  • Learn how HR metrics improve strategic and operational decision making. 

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