Friday, March 4, 2011

How Many Metrics Do You Have? Really?

So many times I am asked to review HR metrics and make recommendations. I can remember meeting with a client last summer. I asked to see their metrics. I was handed pages from an Excel workbook with about 15 tabs with at least 25-40 metrics per tab.

It made me tired, just looking at all that. There was EEO data, there was recruiting data sliced every way imaginable, there was employee relations data, there was training hours per employee by department, location etc. You get my point.

I asked the question, "Who is the recipient of this data?" I was told it went to the leadership team. Poor guys and gals. How could they ever make sense of all that data?

Don't get me wrong some of those 500 metrics were very valuable. But your leadership team does not need to see ALL of those. There are the 3 types of HR Measurement according to Luk Smeyers at INostix:

1. HR Efficiency (HR Tracking/numbers internal HR Dept)
2. HR Effectiveness (HR Programs)
3. HR Impact (outcomes based on investment in human capital)

I would bet the farm that the leadership team described above was looking at HR efficiency and effectiveness measures. I am pretty sure those aren't the ones they lose sleep over. They need to see HR IMPACT measures. They need measures like:

1) Human Capital ROI
2) Revenue per employee
3) Profit per employee
4) Appropriate quality of hire metrics
5) Appropriate productivity and performance metrics

They really don't care about days to fill and which sources your candidates are coming from. That is just HR's J-O-B.

Please keep your HR department efficiency and effectiveness measures between the walls of your HR department. Show the C-Suite your impact measures, that will get their attention and off their Blackberries.

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