Research shows that it's not enough to have great human capital programs. You need to also be able to evaluate the effectiveness of these programs in helping your business reach strategic objectives.
As such, interpreting this data and reporting it to senior management is crucial.
We've discussed in the past the importance of knowing which talent metrics are the most important to your business.
However, as Cathy Missildine-Martin states in a recent HR Examiner article on the state of HR measurement, there's a difference between metrics and analytics:
Metrics track activity, but don't necessarily show a causal relationship. Metrics alone do not show what affects engagement, what causes turnover and what drives performance. Human capital analytics examine the effect of HR metrics on organizational performance.
Want to demonstrate to the C-suite that your organization's investment in talent programs is paying off? Then you need to develop your HR analytics skills.
Case in Point
Halogen customer The Franciscan Alliance is a group of 14 hospitals in Indiana and Illinois. Jennifer Triumph, a Compensation Analyst in the Northern Indiana Region of the Franciscan Alliance, was recently featured in the December issue of HR Magazine discussing how she uses HR data to obtain the resources necessary to recruit and retain high-value talent.
There are five facilities with about 5,000 employees in the region that Jennifer manages, and she relies on Halogen to ensure talent programs are helping the hospital meet its talent retention objectives:
"We need to present data that show our human capital strategy is effective and that we are acquiring, developing and deploying the proper talent."
For example, Triumph measures and reports on the impact of new employee benefits on the hospital's retention strategies (a full list of metrics Triumph uses are listed in the HR Magazine article).
"By showing that we are attracting and retaining high talent, and that employees like these benefits, we can keep these costly benefits...We can show that the cost of these benefits is less than the cost of losing the quantity of employees who would leave if you take away the benefits."
As both Missildine-Martin and Triumph emphasize, the real value comes in translating metrics into actions that advance the strategic objectives of the organization. It's important for HR to report these outcomes to the C-suite so that they understand how talent programs are driving performance - and ultimately profitability - for your organization.
You can read the full HR Magazine article Creating Metrics for Senior Management, featuring the interview with Jennifer Triumph, here.