Metrics are useful only when they measure things that matter. In HR, this means the necessity to link metrics with the "big picture", i.e. a broader understanding of the company's operation and strategic objectives. Furthermore, HR should be able to present the data in such a way that it is useful for the people who work with it. What HR metrics should you choose? Ask yourself the following ten questions originally published in the popular HR Daily Advisor section on blr.com.
1. How does your company generate revenue? How can the company use its people and other resources to earn money?
2. In what ways does HR contribute to the company's profit? What direct and indirect impacts do your activities have beginning with recruitment and employee development?
3. To what extent are the HR activities in your company connected with its strategic and business objectives? What might need to be changed?
4. What are the key measures of success used in your company? Is somebody responsible for each of the metrics?
5. What impact does HR have on these metrics? If you cannot see any direct connection, why does your company have the human resources department?
6. What differentiates your company from the competition? What impact do your company's HR and people management policy have on these metrics?
7. What risks and opportunities is your company facing? What can HR do to minimize the risks and maximize the opportunities?
8. What decisions do you want to be able to influence in the company? Is it employee turnover, salary or something else?
9. Can you connect your HR metrics with corporate decision-making? If not, are you measuring the right things?
10. What happens if your company does not achieve its goal? If nothing happens, was that a meaningful goal?
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