The purposes of an organization’s human resources are to add value to the company, to help make the company more competitive, and to greatly help the organization obtain its business objectives. The purposes of HR metrics are to help the organization discuss the value, to determine and calculate the contribution made by the human capital, and to calculate and predict employment-related risks. Hence in being a strategic business partner, HR experts have to certainly communicate the language of business. Inherent in this language is the lexicon of business measurements and metrics – including HR metrics.
This new 2019 HR Metrics session reviews the utilization of HR metrics and analytics as a key competency reviews the role they play in helping the business make critical business conclusions, discusses the computation of employment practices risk, and provides a list of more widely used HR metrics.
HR metrics and analytics play a vital role in business management. Top management makes use of HR analytics as a crucial part of its strategic planning and application activities. It increasingly makes essential decisions based on the important data HR analytics provides.
Operational management relies on HR metrics to ascertain and handle vital operational and transactional issues. HR metrics gives them the power to understand, anticipate, handle, and monitor important areas and make them facilitate central organization-wide decision making. For operational administration, HR metrics can provide real-time data on how effectively operations are running.
For HR professionals, HR metrics and analytics can provide crucial and useful information about how effectively the organization uses this intangible resource – its employees. For HR Professionals, HR metrics provides a scorecard of employment practices.
Thus HR metrics and analytics provide all levels within the organization crucial information about how effectively the organization is reaching their strategic objectives, their marketplace competitiveness, and the risks it faces.
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Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran-owned, human resource management consulting firm specializing in HR audits, employment practices liability risk management, HR metrics and benchmarking, strategic HR-business issues and unemployment insurance issues. Ronald has more than 42 years of HR consulting experience working with the U.S. and international firms, small businesses and non-profits, printers, insurance companies and brokers, and employer.