Unlocking the Mysteries of HR Metrics – Secrets of the Numbers
In the old days, human resources meant little more than hiring or firing an employee. Today, however, HR encompasses a wide range of tasks from benefits administration to devising corporate strategy. HR metrics refers to a system of data that is used to measure HR and its relationship and impacts on your company. HR metrics can focus on a variety of different specifics and can be used to help uncover areas that your HR department or other departments are excelling at or those areas that they need improvement in. HR metrics can be extremely complex or deceptively simple, and can help companies boost their profits, cut their losses, and much more. In short, HR metrics are an important aspect of your company.
There are three basic types of HR metrics, although specific HR metrics can number in the hundreds depending upon just what a company wants them to focus on. The first basic type of HR metrics is used to measure the effectiveness of the HR department. These HR metrics focus on uncovering what type of effect the HR department and their efforts have had on employees and applicants. These HR metrics could deal with the effectiveness of training programs designed by the HR department, for example, and are vital for ensuring that the HR department is adequately finding, recruiting, and developing new talent in the workplace as well as retaining the employees it has invested in.
A second type of HR metrics covers the efficiency of the HR department. These HR metrics focus on exactly how well the HR department is doing their job. Specific HR metrics in this classification could cover the amount of time it takes the human resources department to fill an open position or measure the ratio between total company expense and HR department expense. Using these HR metrics can help a company uncover if there are issues with the HR department's work efficiency and if it needs to take steps to improve its work.
HR metrics can also be used to uncover the competency and effectiveness of the company as a whole. These HR metrics focus on the employees as human capital and can help to uncover factors like the overall effectiveness of the company and their employees or measuring the number of defects within the company's workforce. Using HR metrics in this way can greatly gauge a company's overall effectiveness at obtaining and maintaining specific advantages.
Managing and tracking HR metrics can be difficult, but software solutions such as those offered by Unicorn HRO can greatly assist businesses in doing so. Even complex HR metrics are simple for these programs to handle and many HR metrics are included as part of HR management systems. Using data entered into various sections of the program such as payroll, attendance, turnover, benefits, and more, these programs can give businesses very accurate HR metrics that can be used to view problem areas within the company and to devise new strategies that will focus on these issues and take advantage of a business' strengths. Used efficiently, HR metrics can be one of the most valuable tools in a company's arsenal and can boost profits and productivity.