In an increasingly competitive environment dominated by cost-cutting and tight budget justification, the workforce investments range from 18-57% of organizations’ operating expense. Shareholders and CEOs measure results. They are keen to have measurable framework to see connections between workforce investment and corresponding organizational success. Numbers are the Universal language of business. Business executives’ judge HR strategic role NOT on be the basis of emotions or activities but by the impact on the business, which is always measured in financial terms. By using following HR Metrics:
- HR can diagnose financial and operational measures, understand the messages in measured data, with a view to become competitive, cost effective and yet responsive to business needs.
- Identify measurement opportunities and quantify HR department’s contribution to the overall bottom line, through solid, factual, and verifiable data and justify toughest business decisions with easy-to-use mathematical formulas.
- Integrate measurement metrics with action plan, to achieve and surpass industry benchmarks.