There is a growing importance of HR measurement that can be attributed to the following trends: a. need to cut costs, b. increased financial accountability and c. the emerging role of HR as a provider of strategic business intelligence.
During the last decade, HR Technology spend is highest on HR metrics and analytics applications and products. HR metrics are imperative for refining people management practices. They are especially critical during organizational change initiatives. Many HR executives lack the ability to effectively use HR metrics for supporting business objectives.
Whether driven by data, fiction, or experience, all narratives share a set of critical elements. These provide an insight when taken together. We have helped organizations with critical elements of the data-driven story by facilitating:
Tactics to enable effective utilization of HR metrics to include a. Ensuring that employees understand how to use HR data to aid decisions, b. Providing tools to enable independent data analysis.
A majority of executive-level managers and CEOs receive HR metrics on a regular basis. Only a few of them have inputs into the selection of those HR metrics. We have seen that the participative definition of metrics highly benefits the organization.