Hr Metrics

It is important to figure out where it is best to focus measurement at. “Significant advances in HR strategic planning and metrics have shifted HR's traditional role - it's now imperative that HR strategy is aligned to business strategy” (Jamrog & Overholt). Marketing, operations and budgeting metrics are connected deeply and logically to the business strategy in most organizations; but for HR there is very little logical connection between the company’s strategic plan and HR metrics. There needs to be a logical connection between the two before you can even figure out where to focus measurement at.

The typical business strategy may include items like the drive to: win, be flexible, embrace risk, be creative, think globally and be fast, but on the other hand typical HR metrics reflect only general goals like headcount, turnover rates, the number of succession candidates, training completed, client satisfaction surveys or other generic HR programs. “There is a clear division between these metrics and business strategy, and that is because they don't help managers understand which HR issues are the strategic ones and which are mostly tactical” (Jamrog & Overholt). Managers need this understanding before they move on to focusing measurement.

The most important goals for HR measurement are to “enhance human capital decisions and connect human resources to strategy” (Jamrog & Overholt). Knowing how many hours of training have been delivered provides about the same amount of information as knowing how many advertisements marketing is running. In either case, nothing is said about the impact those investments had on achieving the organization's strategy. There needs to be a clear connection between the two, and there needs to be information that provides the impacts those investments has on achieving the organizations strategy. By making these connections HR can truly drive business decisions.

Just as marketing needs to know the impact of a campaign on sales or brand recognition, HR needs to know the impact it's having on the business. To do this “HR must look beyond measuring the efficiency and effectiveness of programs and look outside the function to measure