What are human resources metrics?
HR metrics are a vital way to quantify the cost and the impact of employee programs and HR processes, and measure the success of HR initiatives. Metrics give a company the ability to track year-to year-trends - but gathering data is just the start.
Best-practice human resource metrics include a process where robust and reliable data is gathered and analyzed for trends and changes. This information is then scrutinized to determine the root cause or contributors to the data so action can be taken. The results of that action can then be measured and analyzed.
The benefits of HR metrics
The goal of HR metrics is to help managers and leaders make better decisions and improve performance. For most organizations, HR metrics are key for goal alignment, driving employee performance and hiring quality talent.
Research also shows that improvements to performance management make significant improvements to a company's success.
- McKinsey: companies with strong talent practices outperformed their peer group, earning 22% higher shareholder returns
- Watson Wyatt: good people practices can increase a company's value by as much as 30%
- Corporate Executive Board: Employees most committed to their organizations put forth 57% more effort and are 87% less likely to leave their company than employees who consider themselves disengaged
Keys to success
To build a strong company, you need an engaged workforce that is fully aligned with your core business strategies. Talent management software can help you gather and analyze data to help you build on your company's strengths while identifying its weaknesses. Find out how Halogen Software can help you create a bright future for your organization.