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HR Metrics

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Organisations are gradually beginning to recognise the importance and value of their human capital. Due to this, Organisations are increasingly focused on generating Employee data of a qualitative and quantitative nature. The effective utilisation of HR metrics can be critical as it can assist in ensuring that management’s attention focuses on factors that contribute to an Organisations overall success.

A focus on the right metrics can empower both the HR function and Management with insight into how they can contribute to achievement of Organisational goals and objectives and contribute toward improving the overall financial bottom line. Employees can constitute more than half of an Organisation’s overall expenses, but international research has demonstrated that more that 50% of Organisations do not track the impact of HR people related processes and activities within their workforce.  The effect use of metrics can deliver a number of benefits; not only additional value, savings and enable increased productivity but can also assist in more clearly expressing the vital role people related processes can play in overall organisational success.

The most commonly used types of metrics that Organisations utilise include absence metrics, staff turnover metrics and cost per hire metrics. A survey carried out in 2013 by IBEC found that absence metrics were the most common metric used in Organisations with 88% of Organisations surveyed using this measure, both formally and informally. Staff turnover was next in popularity with 75% using metrics in this area.

Human Resource Metrics

HR metrics represent a fundamental way to quantify the value and cost of people related programs and processes and enable the measurement of the success or failure of Organisational initiatives.

The effective use of HR metrics provide for many benefits:

  • Quantify the value and effectiveness of Employee programs and processes and the overall success or failure of HR strategies and initiatives.