HR Metrics and Workforce Analytics are increasingly important across organizations of all sizes.
Rising Interest: Many organizations are actively seeking more information about useful metrics and analytics.
Not a New Concept: While their use is not new, several factors are contributing to a heightened focus, including the widespread implementation of HR metrics and integrated Human Resource Information Systems (HRIS).
Definitions
Metrics:
Data or numbers that reflect details about specific outcomes.
Example: Success rate in recruiting new employees.
Analytics:
Strategies for combining data elements into metrics.
Examining relationships or changes in metrics.
Help managers make informed and better organizational decisions.
Importance of Metrics and Analytics
Information Systems: HR metrics and analytics form a part of organizational information systems.
Impact: Information systems only have an impact if the information leads to different and better managerial decisions.
Return on Investment: There is no ROI from HR metrics and analytics unless they lead to improved decision-making by managers.
If no improved decisions occur, the effort in conducting and reporting these metrics is wasted.
Reporting and Dashboards
Common Reporting Form: Dashboards
Enrich reporting components.
Align real-time analysis of organizational and HR processes.
Increase capacity to aggregate organizational data.
Include business unit analysis to allow managers to examine metrics at various organizational levels.
Dashboard Features:
Maintain a current snapshot of key HR metrics.
Provide summarized graphical and tabular information.
Assist executives in making HR and employee decisions.