HR Metrics is a consulting and training firm which provides competency based SHRM certification, ISO global HR Standards Certification and audit, HR data, analytics, diversity & Inclusion management tools to optimize organizational performance. HR Magazine “We have to always ask why, why, why?” Sparkman says. SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more. To turn this perception around, HR professionals need to continually show the department’s. Rating: 0 - Write A Review 0. As an example, Sparkman talks about time-to-hire—how many days, weeks or months it takes to acquire top talent in a particular area. It just requires time, experimentation and setting your own benchmarks if published ones aren’t available. HR Analytics. But before we go any further, it’s important to understand that these terms are different. Welcome to the second edition of Human Capital Matters for 2014—the digest for leaders and practitioners with an interest in human capital and organisational capability. 1. ​“Ultimately, metrics define what you’re shooting for. It has to stop acting as a cost center,” Sparkman says. “Has the time to hire increased or decreased over time? Data-driven HR starts by creating and implementing a set of relevant HR metrics that help you determine the efficiency and impact of the workforce and HR department. But what story is it telling?” asks Jennifer Currence, SHRM-SCP, president of OnCore Management Solutions, a human resource strategy consulting company in the Tampa Bay, Fla., area. ​“You can’t look at metrics in isolation. Location: Boudreaux's. For example, if executives find that your company’s work contains too many errors, the solution may lie in studying turnover and performance data, Roberts says. hޜUmo9�+������kK��"%mT�K%�pɞ`�nu���c/ �rU�� 3��yƞ�F8�s��$�HT��&Z��XfA�k������S���>��Y���/��5u�r9���΃�}۬���~:���������I�_?�����=�s���0A���|+w]sG8]�O��a0A��CE�àϾ�n�0F'��c�����4�+����mG��-\_7O��K�u�����vV����Yu}l���r�W�(�˭f��r���v6��;Y�8�}��#�Դ�r�ECi 0 . Tie the business strategy to the HR strategy. $(document).ready(function () { We’ve published multiple lists of HR Metrics, including recruitment metrics and performance metrics on this platform. Our focus on metrics has grown tremendously in the last decade. ​“The story of why a company is performing as it is isn’t going to come from HR data. I asked human resources experts to weigh in on the HR metrics that matter most, and why. 100 0 obj <>/Filter/FlateDecode/ID[<4312EFF93E45A984336EDE8B01E4089F>]/Index[83 26]/Info 82 0 R/Length 85/Prev 145040/Root 84 0 R/Size 109/Type/XRef/W[1 2 1]>>stream SHRM Recertification. 8 among the top 25 online influencers in talent management. The HR strategy follows the organizational strategy. Identify the Workforce-Driven Components of Business-Driven Metrics, University of Southern California’s Center for Effective Organizations, Strategic Analytics: Advancing Strategy Execution and Organizational Effectiveness, 9 Tips for Using HR Metrics Strategically, Change Management: Leading Successful Transformations, The SHRM Body of Competency and Knowledge: A Living Organism. ​It has been said, and said repeatedly, that human resources struggles for relevance because it doesn’t speak the language of business: numbers. When you get into that habit, you start to ask better questions and learn to challenge the answers. The critical aspect of developing and tracking HR metrics is to truly understand how your employees can best be channeled within the organization to maximize its impact. HR Standards. “You can measure. Human Resource metrics, also known as HR metrics or HR statistics, are the benchmarks that enable the organization to measure how effective its human resource capital is. “With these numbers in place, trends can be established,” he says. endstream endobj 84 0 obj <> endobj 85 0 obj <> endobj 86 0 obj <>stream Show: Sort By: Narrow By . Admittedly, that’s easier in some cases than others. Human Resource (HR) metrics are measurements used to determine the value and effectiveness of HR initiatives, typically including such areas as turnover, training, return on human capital, costs of labor, and expenses per employee. Back. Building HR Metrics to Guide Decisions. 2 ; 1885 views Numbers seem to be at the top of everyone’s priorities right now. That information hints at whether the company is hiring the kinds of engineers who generate a positive user experience. Share your HR metrics and progress with the entire organization to demonstrate the department’s contribution to the strategic goals. “Really, cost-to-hire should be cost-to-good-hire,” says Ben Yurchak, president of KnowClick, an analytics company in Bryn Mawr, Pa. “One’s an operational metric, and the other’s a quality metric.”, A caveat: Though quality measures might get you closer to tracking real business goals, compiling them may be easier said than done. Price: $0.00 Members/$30.00 Non-Members. Example: HR cost per employee was $590. Our focus on metrics has grown tremendously in the last decade. Diversity & Inclusion. Date: August 18, 2016, 11:30am – 1:00pm: Organizer: Greater Baton Rouge SHRM . “A clerk’s different from an engineer,” notes Andrew Mariotti, a senior researcher at the Society for Human Resource Management in Alexandria, Va. “You have to look at all of the expenses involved—like ads and travel—and look at each position to figure out how large is the candidate pool and the competition.”, Of course, as you examine all this data, you’ll need to decide what trade-offs to make in developing an optimal solution for your company. Episode 264: Partnership on Inclusive Apprenticeship (PIA) → Posted in HR. HR Metrics is a consulting and training firm which provides competency based SHRM certification, ISO global HR Standards Certification and audit, HR data, analytics, diversity & Inclusion management tools to optimize organizational performance. HR Cost 1. Understand the Question First, Then Look at the Metrics, 4. SHRM Certification. HR Analytics. “Talent analytics, on the other hand, focus on decision points, guiding investment decisions” that impact the workforce and related matters. Human Resources key performance indicators (HR KPIs) are metrics that are used to see how HR is contributing to the rest of the organization. ​Another trick to using metrics successfully is to be curious. HR Analytics. Washington, D.C., Bans Noncompete Agreements. Why? It tracks the percentage of workers who are absent during a given period. For example, linking the right type of call center employee directly to customer satisfaction is pretty straightforward. Editor's Note to Readers. ​A key to changing that, experts say, is to go beyond the HR numbers. $("span.current-site").html("SHRM MENA "); Why is it so costly to replace employees? “Why is it high or low? iCal link: Add to Calendar. You have to be humble and admit what you don’t know and ask questions. You just have to figure out how to do it,” Courtois says. That, in turn, can help you look for ways to address whatever dynamic is nudging those employees toward the door. That’s an odd statement from someone who makes his living studying the impact of HR and human capital metrics, among other things. Targets, Scorecards, Dashboards, KPIs. #1 – Productivity “The most important HR measure is and always will be productivity, the ratio of inputs to outputs,” says Mitchell Langbert, Ph.D, an associate professor of business who teaches human resources at Brooklyn College. There are several important metrics that need to be included in an HR report. Regular reporting of HR metrics is a good tool for managing any Human Resources department. “You’re changing the paradigm,” Sparkman explains. "HR Metrics (based on Functional areas)." “Use your answer as a Trojan horse to demonstrate the amount of information you can get from analytics. h�bbd``b`�@�q+�{D��` �tD����V�Xe � �����@��@b�#�#�������S a�" SHRM Certification. That’s why most data scientists believe HR measurements by themselves rarely provide much value to the organization as a whole. ​Finally, always bear in mind this basic point: The intelligence you glean from analytics will only be as good as the data included in your metrics. Diversity & Inclusion. “You’re not using data to figure out the issue,” she notes. Join/Renew Now and let SHRM help you work smarter. Period. ​At bigger organizations, try running a pilot program with a function whose manager has an interest in data, Kuziemski suggests. Reliable—Your metrics must be a dependable proxy of what you’re ultimately trying to assess. 108 0 obj <>stream Let SHRM Education guide your way. The most important areas are listed below. HR metrics for human capital management are now central to the business of any public company. be of great aid in decision-making process. The purposes of HR metrics are to help communicate the value added, demonstrate the contribution of your people, and measure employment related risks. “If you can do that, you can make a better case to management. SHRM Certification. HR Analytics. “Most people use data the way drunks use the lamppost: for support rather than for illumination,” says Alexis Fink, Intel’s Portland, Ore.-based general manager of talent intelligence and analytics. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item. “HR metrics are operational measures, addressing how efficient, effective and impactful an organization’s HR practices are,” Fink explains. He was selected among HR’s “Top 10 Leading Thinkers” and he was ranked No. HR Metrics That Matter. 2021 Programs Now Available! Back. HR Analytics. We've compiled the latest news, policies and guides on vaccines and the workplace. by Sharlyn Lauby On July 17, 2018 0 comments . Efficient—The cost of collecting the data must be minimal. Metrics in an HR report. iCal link: Add to Calendar. Jessica Miller-Merrell. Save this company. After calculating the exit rate, look into what might be driving workers to leave your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. These key HR metrics provide a quick overview of HR’s effectiveness and can be used as Key Performance Indicators (KPIs). How much is the company spending on HR ? SHRM, the Society for Human Resource Management, creates better workplaces where employers and employees thrive together. How do university graduation dates affect the number?”, ‘[I]t makes sense to go out and solicit feedback on how the business leaders perceive HR’s performance on the metric in question.’—Ross Sparkman, Facebook. By studying the data, you’ll be able to answer questions that the business didn’t know how to ask.” For example, you might use metrics to better identify ready-to-hire candidates who can decrease cycle times to fill jobs and thus save money. Targets, Scorecards, Dashboards, KPIs. Human resources departments can use these metrics to improve their efficiency and demonstrate the value of their activities to upper management. Metrics’ value “is about actively choosing things you track because you want to manage your business better,” he says. And when I say numbers, I mean metrics, big data, and analytics. HR Metrics That Matter. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Zahid is the only HR Leader from Asia to become member ISO Technical Committee 260 which comprised of experts from 11 countries including USA, UK, Pakistan, France, Germany, … 0 Organizational performance. HR Magazine Your session has expired. Here are 11 essential HR metrics, from the Society of Human Resource Management (SHRM), that will help you manage your best asset. Diversity & Inclusion. HR Metrics are used to gauge the effectiveness of various HR responsibilities and initiatives such as hiring, employee retention, training and labor costs. The goal is to know what you’re trying to improve.”. Understanding HR Metrics. Accessed July 29, 2019. Those metrics are organized into several categories: talent acquisition, learning and development, performance management, benefits, and organization effectiveness. Location: Boudreaux's. “One thing people don’t realize is it’s all a system,” Fink observes. Fast Company called him the "Michael Jordan of Hiring," Staffing.org called him “the father of HR metrics,” and SHRM called him “One of the industry's most respected strategists." HR Cost. Employee turnover is one of the most important and commonly used HR metrics. endstream endobj startxref SHRM Certification. “Metrics essentially give us a way of qualifying the health of our organization, and, to that end, HR metrics are now different,” says Ross Sparkman, head of strategic workforce planning for Facebook in Menlo Park, Calif. “They’re measuring how the HR function is doing as a whole and also how we’re leveraging the people in the organization to maximize the performance of the company.”. You may find that your competitors offer better compensation or have better career advancement programs and opportunities. I know they are sometimes used interchangeably. “Whatever drives the business has to drive HR numbers,” Sparkman says. Further analysis can uncover why those things are happening. Diversity & Inclusion. “They shouldn’t be a moving target. Human resources departments can use these metrics to improve their efficiency and demonstrate the value of their activities to upper management. Combine workforce measures with broader business data to solve organizational problems. Download free pdf. This means that HR KPIs measure how successful HR is in realizing the organization’s HR strategy. Leave a comment below, and let’s start a conversation on how you leverage HR metrics as part of your human resource and recruitment department. Accessed July 29, 2019. Understand the Role Metrics Play in Talent Analytics, 2. Society for Human Resources Management HR Metrics. Was this article useful? HR Standards. Name: People Analytics: The Metrics Behind People Analytics: SKU: EL-SC-PA-102-CORP: Back. For example, analytics that combine information on employee performance levels and retention data may show you that, once workers reach a certain level of proficiency at their jobs, they’re prone to leave. Please confirm that you want to proceed with deleting bookmark. “So HR leaders could ask their clients if their top talent was being sourced fast enough to meet the demands of the business.” That information will help to establish if the base line needs to be improved and, if so, by how much. Who’s retiring? 2 ; 1885 views Numbers seem to be at the top of everyone’s priorities right now. And when I say numbers, I mean metrics, big data, and analytics. Ask the critical human capital questions. Is it high in just one department? The effort could be about improving sales performance or reducing turnover in IT. Metrics are a fundamental part of HR Analytics and offer valuable input for strategic decision-making. Diversity & Inclusion. Identify HR metrics associated with performance, talent acquisition, retention, and employee engagement ; Apply common HR metrics associated with people analytics; Relate people metrics with business impacts; Recertification SHRM: 2 PDCs. HR Responsiveness. SHRM is the foremost expert, convener and thought leader on issues impacting today’s evolving workplaces. About HR Metrics HR Metrics provides evidence based HR analytical frameworks for workforce management to leverage employees’ performance and … CEO HR Metrics Founder Leader SHRM Forum Pakistan, Former Convenor HR Metrics Standard Working Group ISO Technical Committee 260 Former Member Special Expertise Panel-Human Capital Measurement Metrics SHRM USA Executive Director ICEE for Middle East, Europe and Central Asia. var currentUrl = window.location.href.toLowerCase(); “People come to HR and ask for reports,” Fink says. effectiveness and contribution to the company through solid, measurable metrics. In this list of HR metrics, we included the key HR metrics examples associated with those areas. We provide consulting, training, benchmarking, and technology support to meet organization change imperatives. “At smaller companies, you just start doing it,” says Cezary Kuziemski, head of HR for insurance underwriter Hamilton USA in Princeton, N.J. “Go to Finance and say, ‘Here’s what I can do for you,’ then do it. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Back. “This is a commitment, and it’s really important that HR both knows and works with others to understand this. The metrics you choose should be closely aligned with your industry, business and strategy. Does it vary by month, quarter or season? Download the FREE cheat sheet with 51 HR Metrics. SHRM Recertification. “Analytics can identify traits of success to identify who’ll succeed, especially for pivotal jobs that drive a lot of value,” he notes. “But how do you measure lawyers, scientists and the like?” Housman asks. Illustration by James Fryer for HR Magazine. Instead, focus on building the business case for what the department is doing. If not, who’s the manager for training in that area? HR Metrics is SHRM International Partner for SHRM-CP and SHRM-SCP certification programs in Pakistan. Why these skills? $('.container-footer').first().hide(); The following 70 HR metrics are illustrative. Also, be ready to take advantage of opportunities as they arise. Together, they should feed into a strategy that moves the needle on business goals. This is the number of days between a position opening up and a candidate signing the job contract. A high employee turnover rate is an expensive problem. He was selected among HR’s “Top 10 Leading Thinkers” and he was ranked No. If you want people to stay in their job, for example, you look at things like turnover and attrition. You can read more below about some common HR metrics examples and how to use … Show how improving the workforce element improves what management wants to improve.” Remember, he adds, “senior leaders understand things from the cost and finance perspective. Please purchase a SHRM membership before saving bookmarks. Fast Company called him the "Michael Jordan of Hiring," Staffing.org called him “the father of HR metrics,” and SHRM called him “One of the industry's most respected strategists." The most common HR metrics that are … The metrics you choose should be closely aligned with your industry, business and strategy. Post navigation ← Episode 263: The Role of the CHRO Leading Change. 2. It doesn’t have to be complex or take a gargantuan effort to create—it could be something as straightforward as an HR KPI dashboard. I know they are sometimes used interchangeably. Format: Self-paced; Course Duration: 1 hr 16 mins; SHRM Professional Development Credits: 1.25; HRCI Business Recertification Credits: 1.25; Certificate of Completion (after passing quiz) Today, we are addicted to numbers! SHRM's brand-new People Analytics courses cover everything from the basics of data analytics to the practical application of HR metrics to the most common people issues. Definitions of HR metrics and Analytics. SHRM Recertification. Human Resource (HR) metrics refer to data points that measure the cost and effectiveness of the HR process and specific HR initiatives. 1. The following 70 HR metrics are illustrative. Event Type: Chapter Meeting . For example, you might train people in new procedures and compare the outcome with the results of previously established practices, Courtois suggests. Second, SHRM reminds us that the main purpose of HR metrics is to help your organization make better, more informed decisions. Put another way, metrics tell you what is going on, while talent analytics get at what to do about it, driven by both good data and good science. ​First, you have to recognize the difference between metrics and analytics. What do HR metrics tell you? You have to demonstrate it.”, [SHRM members-only online discussion platform: SHRM Connnect]. HR Magazine Results 1 - 6 of 6. HR Metrics are used to gauge the effectiveness of various HR responsibilities and initiatives such as hiring, employee retention, training and labor costs. HR Magazine HR Cost vs Revenue HR cost was 0.54% of revenue. This metric takes the same starting point but takes the date the candidate starts … HR Metrics provides evidence based HR analytical frameworks for workforce management to leverage employees’ performance and organization productivity in verifiable terms. ‘Ultimately, metrics define what you’re shooting for. HR has been using metrics since the 1970s and, through the years, the arsenal of tools has grown substantially. Delving further may show that matching managerial styles to specific workers’ personality types will reduce turnover dramatically. But what is important is that you share both positive and negative results. SHRM Recertification. Here are some key HR metrics that are helpful in this process. ‍ 2. “Metrics are about getting the numbers right, and analytics are about finding answers in the data,” Fink says. Aside from validating. Identify HR metrics associated with performance, talent acquisition, retention, and employee engagement ; Apply common HR metrics associated with people analytics; Relate people metrics with business impacts; Recertification SHRM: 2 PDCs. “To determine the cost of a quality hire, you need time and information from other departments,” Yurchak notes. From there, you can forecast how much money the organization will save in hiring and training costs. 1. There’s going to be a lot of education involved.”, Exactly how the department gets its message out depends on the size of the employer. Determine the measurements that will help you address the issues at hand. $("span.current-site").html("SHRM China "); SHRM Human Resource Vendor Directory; HR Metrics; HR Metrics. HR Cost vs Revenue HR cost was 0.54% of revenue. Here are four key HR metrics every small business should be tracking to have an accurate pulse on their employees. You have to come to the other function with more than thoughts, but something concrete.”. ​To help identify what those things should be, find data that meets the “CARE” criteria created by Levenson; include only information that is: Consistent—The data underlying the metric must be measured steadily over time. But data science can be a strange business—and Alec Levenson, senior research scientist at the University of Southern California’s Center for Effective Organizations, says one of the most important things HR professionals should understand about HR data is its limitations. Event Type: Chapter Meeting . Take it from an expert. We recently discovered a fantastic article on LinkedIn that outlined 70HR Metrics you should be measuring in your business. Employee turnover is usually mentioned in a negative context. You have successfully saved this page as a bookmark. We’ve invested in making sure it’s good, quick and accessible. 0 . Need help with a specific HR issue like coronavirus or FLSA? “Let’s say your organization enjoys a high profit per employee (PPE), but turnover is higher than industry average and long hours and lack of work/life balance are cited as primary reasons for employee dissatisfaction,” Alper-Leroux says. HR has to think much like the CFO thinks about ROI.”.