HR has moved a long way from the admin-only role it was once known for. HR teams are expected to support business growth, employ the best people, keep them motivated, pay them properly and retain them, all without excessive cost. No pressure.

To get anywhere near that, HR first needs to know what the current situation is. What is the story today? The answer lies in HR metrics. Just as the sales department has a quota, HR should have measurable goals it is responsible for. HR professionals need to be able to answer questions like:

  • How efficient and effective are the current processes?
  • How much do people and employee initiatives cost?
  • How do employee initiatives affect business goals?
  • How do you measure the impact of change?
  • How can employee productivity improve?

HR needs to show a clear link between people activity and business results, and demonstrate return on investment. That means knowing which data to collect, which numbers matter and how to calculate common metrics. Good data helps managers understand the workforce and make informed decisions.

The good news is that HR does not need data science degrees for this. An HR system with good analytics and dashboard function does much of the work, delivering insight the business can act on. Alternatively, a good consultancy can guide you through it. See our people data page for how we approach this with clients.

If you are already delivering HR metrics, keep building on what you have and look for other metrics that solve business problems. If you have not started, you can start today. Even a spreadsheet is a beginning, though if that is where you live, it is probably time to think about moving from Excel to an HR system. Cost is less of a barrier than it once was, with providers charging as little as £1 per employee and no in-house IT requirement.

HR analytics is a key input for good decisions. It tells you whether HR is making a difference, and gives the business the people insight it needs to retain happier, more productive employees. Our people data page has more, or you can talk through the pressure points.