MM_13_may_2023_HR_Metric INDkkkkkkkkO.docx

mantap

1. HR metric

2. Not Numbers!”
Have you said? “I joined hr because I like working with people…

3. the o

Why Should You Invest in HR Metrics
• Benefits seen regardless of company size
• Not a guarantee return on investment.
• Must determine what data is appropriate to collect.
• Learn how to use this information to increase managerial decision-making
efficiency.

• Remember the Hawthorne Theory?
• The Hawthorne effect (also referred to as bserver effect) refers to
a phenomenon whereby workers improve or modify an aspect of their behavior
in response to the fact of change in their environment, rather than in response to
the nature of the change itself. The "Hawthorne effect" study suggested that the
novelty of having research conducted and the increased attention from such
could lead to temporary increases in productivity.

4. Modern HR Metrics and Analytics

• Transition period
• More organizations are now reporting a larger number of metrics more
consistently
• Most organizations use metrics to audit their HR activities

•

5. Balanced Scorecard

1. Aligns business
function measures
with organizational
strategies.
2. Measures the
effectiveness of a
department or the
entire company.
3. Considers
perspective of all
stakeholders.






Customers

Vision
Values
Learning and
growth
Internal
business

6. Here are three types of human resources metrics:

•Metrics that measure the effectiveness of the human
resources function.

•Metrics that measure the efficiency of the human
resources department.

•Metrics that measure the effectiveness of the
employees within the organization.

7. Human resource measurement methods that rely on verifiable data are called "hard"
metrics.

Hard metrics use quantitative data points to evaluate the typical daily work routine and how
well the employees carry out their assigned tasks.

Human resource managers use sources such as employee records, management
reports and project databases to obtain these hard numbers.

They may also use sophisticated software programs to calculate how well employees
meet project goals and cost estimates.

8. Human resources professionals accumulate and evaluate data measurements for a
wide range of applications.

These metrics can include:






HR department heads frequently use these metrics to determine the
efficiency and status of managers and their employees, but they can
also apply these measurements toward compliance with government
regulations and maintaining industry standards

9. Examples of Hard Metrics

Human resource managers use several types of hard metrics to
evaluate the company's performance:

employee turnover
This metric calculates how often employees leave and must be replaced in a
position or department.

employee retention, or how long an employee stays at a position. revenue per employee,
training costs per employee and
time to fill an open position.

10. Uses for Soft Metrics

Metrics that focus on qualitative measurement are known as
"soft" metrics.

soft metrics use subjective data and interactive responses to determine an employee's
effectiveness.

Soft metrics stress the impact that human capital has on business
outcomes.

The guiding principle behind the use of soft metrics is that employees who show
skill, satisfaction and productivity create a healthy and
profitable environment for both workers and management.

11. Quantitative v. Qualitative Research



• Collects and analyzes
numerical data in a descriptive
or inferential manner.
• Uses: Describe groups,
compare results, identify
trends or commonalities.
• Examples: Charts and graphs,
statistical measures,
regression analysis.
• Collects attitudes, opinions,
and feelings.
• Uses: Identify strengths and
weaknesses, generate ideas,
determine preferences.
• Examples: Focus groups, in-
depth interviews,
questionnaires.



Quantitative



Qualitative

12. Examples of Soft Metrics

Human resource managers use such tools as:
customer surveys, management reports and face-to-face interviews One of the most
important soft metrics is employee satisfaction.
Managers must assess employees to determine if they are either
bored with the ease of their tasks or overwhelmed with too much responsibility, as these
situations can lead to employee dissatisfaction.

Workplace diversity is also an important soft metric, especially for companies that seek
government contracts.

13. Metrics


Metric/Tool Examples
Surveys Smile Sheets, 30 Day Behavior Change, Annual Corporate
Employee Satisfaction Survey

Comparisons •Performance Mgmt System
•Competency/Behavior
Change
• Performance of Direct
Reports
•Promotion Rates
• 360 Assessments
•LDP vs. Everyone else
Mentoring
Relationship
Mentoring Surveys + involvement across the
business
View from Mentee / Mentor



Business Metrics • Individual and Group contribution to Business Goals
• Business Case Results
• Performance and Annual Reviews
• Delivery on Change Management
• Increase Coaching and Business Contribution

14. 13

15. 5 tips for developing and
managing HR metrics
Key to success

16. https://smallbusiness.chron.com/difference-between-
hard-soft-human-resource-metrics-73984.html






•HR Metrics Key Issues for Human Resource
Management

17. There are four levels of analytics:
descriptive,
diagnostic,
predictive and
prescriptive.


This article looks at how HR analytics support a range of
areas such as company culture, employee engagement,
turnover rate and absenteeism.