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Choosing the right Metrics and Types of Metrics

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Deciding on what to measure and the type of metric is key. The metrics used should be aligned to the key organisational strategic issues that are being faced.

Metrics should also not just demonstrate a result.  The effective use of metrics illustrates a cause and effect relationship. For example, when focusing on turnover rates, effective metrics should be able to identify if a high turnover rate exists by criteria such as location, job role, job function. If a significantly higher turnover rate exists in one function compared to other what are the possible causes of this?  Possible causes may include people managers in the department, the nature of the work, are roles in high demand with external competition from other Organisations. The effective use of metrics not only provides the raw data but goes further and allows for taking of further action.

Key stakeholders also play a key role in determining their needs and expectations in relation to HR metrics. Key stakeholders may include Heads of Departments and Senior Management Leaders. What information would they find of value in order to add value, to aid decision making and run the Organisation more efficiently?

Types of HR Metrics

4 key categories of metrics include: