HR metrics should not be developed in a silo or owned exclusively by human resources. To be of value, HR metrics should measure the business factors that are important to the organization not just HR and should be co-owned by HR and the C-suite, other departments, and line managers. The right or best metrics are HR metrics that incorporate the input of stakeholders and contribute to informed decision-making. From this perspective, HR metrics should be predictive and action oriented.
HR metrics that do not assist organizational decision making are of little value. The issue is not the number of metrics. As Albert Einstein noted:
“Everything that counts can’t be measured and everything that can be measured does not count.”
Thus, the measurement of business outcomes is a critical component of an HR audit process. Your organization’s HR analytics and metrics should help you assess the value and contribution of your organization’s human capital; should focus your organization’s attention on how human capital helps it achieve its business objectives; should help you measure and assess human capital management and employment practices liability related risks; and should help you assess individual and organizational performance.
Increasingly, senior management seeks information about how it can improve key elements of the organization – this includes human resources. At the same time, investors, lending institutions, and third-party administrators are constantly imposing requirements upon organizations that ensure resources are properly used and that results are properly reported.
Meanwhile, governmental and regulatory agencies have put employers on notice that they must create, maintain, and demonstrate procedures and activities that they are in compliance with the laws.
In this environment, organizations need metrics and measurements that are strategic, operational, and transactional. They need HR analytics that help them identify and predict future events. They need HR metrics that help them identify and assess the monetary and non-monetary risks and help them manage revenue generation, productivity, labor costs, and profitability. Additionally, organizations need HR measurements that help them demonstrate their level of compliance.
The failure to achieve these goals can mean lost business opportunities, may make their desired employment brand and their ability to attract and retain top performers more difficult to achieve, and may result in legal employment liabilities.
This HR metrics and analytics training discusses the use of HR metrics and measurements in helping organizations assess these risks and discusses the use of HR related Key Compliance Indicators (KCIs) that can be used in demonstrating required levels of compliance.
Since HR metrics can assist your organization identify weaknesses and failures in its human resource management and employment practices compliance activities, your organization’s selection and use of specific HR metrics is not only an indicator of what issues it considers important, but is also an indication of your organization’s commitment to identify and ferret out ineffective or unlawful practices and processes.
Your organization may be scrutinized not only on the issues it chooses to measure, but also the issues it chooses to ignore.
Thus, your use of HR metrics considers both quantitative and qualitative methods and measurements, should help you assess your organization’s performance, and should provide you with data that will allow you to evaluate human capital outcomes.
This HR management training identifies and discusses many of the HR metrics and measurements currently being used. It is designed to provide background material to help you analyze key metrics, help you determine the “right” metrics for your organization, and assist you use this these metrics in the decision making process.
Ronald Adler is the president-CEO of Laurdan Associates, Inc., a veteran-owned, human resource management consulting firm in Rockville, Md., specializing in HR audits, employment practices risk management, benchmarking and HR metrics, strategic HR, employee surveys, and unemployment insurance issues. Mr. Adler has more than 42 years of HR consulting experience working with U.S. and international firms, small businesses and non-profits, insurance companies and brokers, and employer organizations. Mr. Adler is a consulting expert on work force, employment practices, and unemployment insurance issues to Bloomberg BNA, HR Magazine, and other publications and newspapers across the country. His research findings have been used by the Federal Reserve Board, the Equal Employment Opportunity Commission (EEOC), the National Conference of State Legislatures, the National Association of Manufacturers, the National Federation of Independent Business, insurers, and international organizations.
Mr. Adler is the co-developer of the Employment-Labor Law Audit™ (ELLA®), the nation's leading HR auditing and employment practices risk assessment tool, and is a frequent lecturer and author on HR management and workplace issues. As an adjunct professor at Villanova University, Mr. Adler teaches graduate courses on HR auditing. He is also a certified instructor on employment practices and insurance issues for The CPCU Society, has conducted continuing professional education courses for the American Institute of Certified Public Accountants on "Assessing Employment and Personnel Policies," and has conducted continuing professional education courses for SHRM, the Institute of Internal Auditors, and the Institute of Management Consultants.
As a member of the Society for Human Resource Management (SHRM), Mr. Adler serves as a subject matter expert (SME) to SHRM on HR metrics and formerly served on SHRM's Human Capital Measurement/HR Metrics Special Expertise Panel. He is a consulting expert on workplace issues to SHRM's legislative staff, has contributed materials for The SHRM Academy and the SHRM Learning System, and has represented SHRM in meetings with the EEOC.
Mr. Adler is an appointee to the State of Maryland Legislative UI Committee. Additionally, he belongs to the Institute of Internal Auditors, chairs the Maryland Chamber of Commerce's UI Subcommittee and is a member of the U.S. Chamber of Commerce's Labor Relations Committee.
Mr. Adler holds a bachelor's degree in finance from the University of Maryland and an M.B.A. degree from Southern Illinois UniversityView all trainings by this speaker