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HR Metrics-Two ways to make them rock

Rock starI’ve recently come across two great ways to make your HR metrics more powerful. It doesn’t require that you really do more of anything if you already collect and report on the numbers, so that’s what makes it so easy.

Stop collecting fuzzy stuff.

Just stop. Please. We really don’t need an exact number telling us how “happy” employees are. Stop collecting data on fuzzy stuff. Instead, consider average cost/time to hire, aggregate turnover costs,  or something else that’s easy to grasp and understand its impact on the overall financial standing of the organization.

Report alongside other business data.

When it’s time to share those cold, hard facts, make sure the information is embedded in or grouped with other key financial indicators. Your numbers will instantly be more credible, and there’s a good chance they’ll be looked at (as opposed to dropping a separate “HR only” report at another time, which might signify the data isn’t important enough to be shared with other critical information).

Really simple to do. Surprisingly effective from the stories I’ve been told. What do you think?

Photo by crsan.

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7 responses to “HR Metrics-Two ways to make them rock”

  1. Jojo the HR Pro Avatar
    Jojo the HR Pro

    Agreed. Couple of caveats though:

    I’d tell HR practitioners to balance cost metrics on their report with revenue-impact metrics derived from HR-related activities (equal in number). This keeps the “HR is a Cost Center” mentality at bay.

    I’d also make sure that the key financial indicators embedded in the report match Finance’s exactly, or any credibility goes out the window. (Ex. Finance and HR have a very different way of looking at headcount.)

    Oh, and know what your numbers mean. Be prepared to “go deep” even if those questions never surface.

  2. Lori Goldsmith Avatar
    Lori Goldsmith

    I do believe the figures must be drilled deeper. It is possible to measure financial impact of “fuzzy” or not so “fuzzy” activities in the organization as well. HR has to have a business mindset and speak the same language in the same way that a CIO will speak with the executive team in one language, his or her team in another and a third for the end-user. If you don\’t know how Finance looks at headcount then find out. You can\’t expect to be credible if you are not on the same page.
    Also agree with Jojo the HR Pro: Know what your numbers mean. Be prepared to “go deep” even if the questions never arise.

  3. Chris Ferdinandi - Renegade HR Avatar
    Chris Ferdinandi – Renegade HR

    Dude,

    Your best article yet! I’ll agree with what’s already been said.

    Context, context, context.

    The metrics are completely useless with understanding how they tie to the business.

    Great work, Ben!

    Chris

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  5. Ashish Avatar
    Ashish

    Request all to share some good HR Metrics for monthly MIS apart from Absenteeism and turnover metrics.

    Regards,

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