At least in the last decade, HR departments in companies around the world have invested enormous amounts of time and money in the development of HR metrics, but the results are still not satisfactory. Measuring often leads to frustration on all sides and has little strategic impact. That is at least what John Sullivan, world-renowned consultant in the field of HR and current professor of management at San Francisco State University, claims. Moreover, he adds: "After three plus decades of thought leadership and research in HR metrics, I’ve concluded that the current approach is an abject failure and that HR simply can’t continue on this current painful path."
In his article on ere.net Sullivan formulated fundamental mistakes associated with most of the current approaches to measuring HR in companies. He subdivided 20 specific issues into four categories. We bring you a brief overview, you can read the original article describing the mistakes closely below (link Source).
1. Mistakes related to measuring past and future
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Reporting what happened in the past has just a little meaning for companies. Most HR metrics, however, measure the past.
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Future development metrics and predictive analysis are often missing at all.
2. Mistakes related to measuring business impact
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HR metrics do not express the impact of HR activities in money and goals.
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HR do not calculate any financial costs associated with not handling problems of managing people in the company and significant costs reductions.
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HR do not calculate any risks.
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HR often do not measure even the most common business indicator - return on investment.
3. Mistakes related to decision-making and action
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HR metrics do not lead to any action.
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HR metrics are not designed for decision-making.
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HR indicators do not answer the question "why", which makes it difficult for subsequent actions.
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HR do not provide metrics in real time.
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HR metrics are not directly available to line managers.
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HR metrics are not involved in standard business reporting.
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HR metrics do not provide any external metrics.
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HR metrics do not allow comparison with other indicators.
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HR do not measure decision-making in time.
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HR do not provide just-in-time warnings that an action is required in connection with certain serious problems.
4. Mistakes related to choosing metrics
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HR do not provide algorithms for more accurate calculations of HR activities.
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HR provides too many metrics.
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HR provides tactical, not strategic metrics.
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HR select metrics in isolation not involnig the end users - managers.
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