HR Metrics and Strategic Analysis

Introduction to HR Metrics

• Metrics in HR involve data and analysis.
• Historically challenging area for HR professionals.
• Common HR metrics:
  • Time to hire
  • Employee turnover (leavers)
  • Sick days
  • Cost of hire

Operational vs. Strategic Metrics

• Operational Metrics:
  • Basic, often used metrics that track day-to-day functions.
  • Examples include time to hire, leavers, and cost of hire.
• Strategic Metrics:
  • Analyze the impact of HR activities on business performance.
  • Questions considered:
    • What is the impact of employee turnover on business?
    • How does the slowness in hiring affect the business?
    • What happens when key individuals leave, and how does it affect revenue?
  • Example metric: Revenue divided by the number of employees.

Importance of Measuring and Re-measuring

• The concept: "If we can measure it, we can change it."
• The process involves measuring, implementing change, and then re-measuring to assess impact.

Conclusion

• Metrics are crucial for understanding and improving HR's impact on a business.
• Both operational and strategic metrics offer valuable insights but serve different purposes.
• The fascination lies in the ability to quantify and change aspects of HR to drive business success.