HR metrics. Common HR Metrics. Examples of HR metrics

HR Metrics
Name
Institution
HR Metrics
Introduction
Often, it is possible to find that the human resources function within an organization is not generating any direct revenue. For most organizations, the various functions are measured or considered by their financial value, and the least beneficial is cut off or slowly condensed. However, a majority of organizations would never touch or feel convinced to compact or condense their human resources even though they do not directly see its value. Well, financial value is not the only metric organizations use to measure performance or value of a function. When it comes to the human resources function, organizations normally employ certain measures which aside from being specific to this function, help to determine its effectiveness and efficiency and hence the term hr metrics. A quick and simple definition of hr metrics can, therefore, be the vital or crucial methods which are used to quantify the impact and cost of the human resources function including the employee programs. Aside from the above, the hr metrics also measure the progress, success, and failure of some of the HR actions. HR metrics are quite priceless, and in organizations which understand their significance, they are an essential step before a business determines its future trajectory.
There are different reasons why organizations need HR metrics, and the most common or the most obvious reasons include:
* To be a strategic HR business partner – an organization cannot be considered as a strategic HR business partner if it does not employ HR metrics. It is through these metrics that a business can be able to position itself for certain approaches and also act from an informed point. Therefore, organizations need HR metrics for them to be considered strategic or calculative with their decisions.
* To track HR efficiency and effectiveness – the human resources department requires a lot of money to run and to maintain. Each year, this department will forward a budget to the finance department and expect to be funded. However, unlike the other departments, it does not forward anything in return which helps to showcase its financial performance. This makes it difficult to determine its value/effectiveness/efficiency from a business or financial standpoint. But through the HR metrics, an organization can track how effective and efficient its human resource department is. For example, it is possible to determine the impact or value of new employees something whose value cannot be financially quantified.
* To identify issues in the processes and take corrective actions – it is crucial for organizations to identify issues which come as a result of its actions and processes. However, it is also essential to understand that such cannot be quantified using the readily available metrics. Therefore, it will only take the HR metrics which will help to determine the challenges and problems with some of the decisions made and some of the adopted measures.
* Trend analysis for improvements in human capital utilization – an organization can never fully understand or know what works or what gets the most out of their employees without performing HR metrics.
* Forecast – HR metri...