Select and Report Strategic HR Metrics
Show how HR makes a difference.
- Many HR departments don’t know where to start when it comes to selecting metrics; they have the business goals, but they don’t know how to translate them into measurable HR goals.
- Many organizations schedule tracking to occur at an arbitrary time, commonly quarterly, instead of allowing the nature of the metric to dictate timing. This causes HR to expend unnecessary effort tracking metrics more often than is necessary, to miss important information by tracking less often than is necessary, or both.
- Too few organizations are able to demonstrate their strategic value to the business. Through the intelligent use of strategic metrics coupled with timely, digestible communication of findings, the contribution of HR can easily be demonstrated – and the relationship strengthened.
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Our Advice
Critical Insight
- Strategic metrics show HR and the business how HR is helping the business reach its goals; they measure HR’s performance as a strategic partner.
- The compilation and analysis of metric data is often haphazard, if it’s done at all. This is a shame because thoughtful analysis not only reveals progress, but allows HR to make course corrections if performance is off-track.
- Communicating metric information is crucial – don’t just throw numbers at the executive. This is HR’s chance to demonstrate its understanding of the data – what it means and what the recommended course of action is.
- If you don’t understand what’s driving a metric to lag or lead projections, get behind the data with qualitative information (e.g. interviews and surveys) to understand the cause(s) before you present in the boardroom.
Impact and Result
- Proper metric selection, tracking, analysis, and communication results in a greater contribution to organizational goal attainment. Since organizational goals are almost invariably connected to business profitability, this means a positive impact on the bottom line – not to mention on the HR-business relationship.
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