hr metrics with example
TRANSCRIPT
![Page 1: HR Metrics With Example](https://reader031.vdocuments.mx/reader031/viewer/2022020810/577cd7261a28ab9e789e312e/html5/thumbnails/1.jpg)
7/27/2019 HR Metrics With Example
http://slidepdf.com/reader/full/hr-metrics-with-example 1/2
The fact remains that you need to know your current state of performance before you can look at
means to improve it. Measurement provides you with information on the status of any
performance. It represents a feedback mechanism, indicating what’s working well and what isn’t.
But the trick lies in figuring out exactly what it is you need to measure. You don’t want to bemeasuring the wrong thing. Taking in too many indicators could result in losing sight of the
objective of measurement.
There are many tools available, from the Balanced Scorecard to the Return on Investment (ROI)method. But no single tool fits all organisations and may vary depending on whether you’re
considering the private or public sector. While similar concepts of measurement may apply, the
indicators are sure to vary, sometimes requiring customisation and some degree of alignment to
the enterprise-level performance.
What HR metrics represents is a comprehensive analysis of key indicators focused on the HR
structure, HR processes and activities, financial expenses, and time spent by an organisation. It
seeks to provide detailed information on the effectiveness and efficiency of an organisation’s HR management system in comparison to the overall organisational performance. In essence, HR
metrics portrays the HR function’s contribution to the organisation. As a method of quantifyingthe impact of HR, its programmes and activities, it includes both leading (future predictors) andlagging (historical/financial) indicators.
Linking to business resultsSo, how do we ensure that various measures employed are linked to business results? Well, the
intent of HR metrics is not just to evaluate the HR function effectiveness or efficiency but to link
the metrics to the overall business performance. Each of the measurements or indicators, whichare components of the HR metrics have significant links to the business operations.
Let’s take time-to-hire measures, as an example. The shorter the time-to-hire, the faster the new
employee will be contributing to the function he has been hired for. This then translates toincreased departmental productivity which thereafter leads to overall business performance!
Similarly, consider the training investment per employee. Obviously if the organisation is willing
to spend more on employee training, then employee productivity will grow as well. But it must
be investment in the right sort of training; there are companies which invest in wrong training
interventions and expect miracles. I am positive that each of the measures that forms the HR metrics contributes to the overall business performance either directly or in-directly.
There are many common measurements including attrition rates, time-to-hire, cost per FTE,average remuneration etc. These measurements can be categorised into the following buckets:
Financials
Productivity
Compensation and benefits
Resourcing
Learning and development
![Page 2: HR Metrics With Example](https://reader031.vdocuments.mx/reader031/viewer/2022020810/577cd7261a28ab9e789e312e/html5/thumbnails/2.jpg)
7/27/2019 HR Metrics With Example
http://slidepdf.com/reader/full/hr-metrics-with-example 2/2
Behaviours which includes attrition rate and absenteeism
Workforce structure
Examples:
Time to fill – Total days elapsed to fill requisitions ÷ Number hired
Training Investment Factor – Total training cost ÷ Headcount