The question of being careful in choosing the HR metrics in any organization is the most vital one. We have made an attempt in this blog , to elucidate the reasons for the same.
Human Resource Management professionals , throughout the world , have been pro- active on this issue.
Oracle conducted a survey , in which 25 companies and 1510 respondents participated. It was amazing to know that 94% of the participants said that they could get real time and new insights into the domain of employee career development . They could do this , through application of right HR metrics and analytics in their organizations, for solving employee career development issues.
In addition to the above, 51% of the respondents said that they could perform predictive and prescriptive analytics in the domain of Human Resource . However, contrary to the above,only 37 % of finance professionals could perform predictive and prescriptive analytics in the domain of finance. This shows that careful and pro-active HR professionals, chose the right HR metrics along with analytics, which paid them rich dividends .
1.0 Contents of the blog
The author proposes to discuss the following in this blog:
- How HR metrics and HR Analytics are integral to each other ?
- Characteristics of good HR metrics
- Why you should be careful in choosing the HR metrics ?
2.0 How HR Metrics and HR Analytics are integral to each other ?
Often a debate raises in the field of Human Resource , whether a difference exists between the two. Many articles are available to elucidate that a difference does exist. At the same time , some experts say that they strengthen each other. It is the opinion of others that they are basically the same.
Notwithstanding the above,it is the distinct opinion of author that they are integral to each other. In fact , HR Metrics are part of HR Analytics. Each of them will not be able to serve any purpose, without the help of the other.
HR Metrics support HR Analytics. HR Analytics alone , will not be able to do much , in forecasting business prospects & trends , unless HR Metrics assists it.
HR Metrics acts as a true reflection of business through specific, quantifiable and realistic numbers or indices, to foresee, in which direction the business is moving.
Similarly, HR Metrics will be of no utilization ,without HR Analytics. This is because without analytics , it will not be able to give the required information about the business. In that case, taking informed decisions will not be feasible.
In nutshell, both are powerful tools . When we use them in conjunction with each other , they prove to be extremely beneficial for the organizations.
3.0 Characteristics of good HR Metrics
Good & befitting HR metrics should have the following nine characteristics:
· HR Metrics should evolve with business needs. With the change in business needs, it should be capable of adjusting & readjusting itself.
· Should create good external & internal relations.
· Assist the line managers, head of departments & CEO’s in making informed decisions.
· Good HR Metrics must be meaningful and capable of providing direction to business.
· If HR Metrics or combination of metrics do not increase the revenue , we may term them of no use.
· Good HR metrics must be easy to understand and handle.
· An adequate metric is one , which is capable of weaving well ,with other metrics.
· HR Metrics should be specific, realistic, quantifiable & actionable.
· It should be such , that it may undergo the process of peer review.
4.0 Why should you be careful in choosing the HR Metrics of your organisation?
We must bear it in mind that the HR metrics of two organisations may not be alike. In fact, HR metrics vary from one organization to other.
The author has made an attempt to shortlist the precautions required to select the HR Metrics,for your organization. These are as follows:
· Take into account the business goals & strategies of your organization.
· Ensure that they reflect the standards & specifications that are in use in the organization.
· Aspirations & requirements of customers through feedback, surveys, & interactions should guide the HR metrics , which, we choose.
· Try to assess the competitive environment, along with studying the strategies of the closest competitor.
· We should try to take into account the market realities of the domain .
· Study the financial aspects of the metrics ,which ,we have chosen.
· While choosing the HR metrics for your organisation, you must include the safety aspects too.
· HR metrics should answer the critical questions about your business. Hence, it is imperative to ask hard or critical questions. Answers to these critical questions will help you , in selecting the right HR metrics.
Based on the above discussions, we may arrive at the following conclusions.
· HR Metrics & HR Analytics are integral to each other.
· Both are powerful tools . When we use them in conjunction with each other, they prove to be extremely beneficial for an organization.
· One should be very careful in choosing the HR metrics for ones organisation.
· HR metrics , which we choose, should be in close conformity with the vision, mission, goals, business strategies, financial aspects, specifications & business practices of the organisations.
If you are looking to upgrade your skills in HR Analytics, you might want to consider a certification in HR Analytics by CHRMP. To learn more click here.