HUMAN RESOURCE METRICS 2Human Resource MetricsIntroduct

HUMAN RESOURCE METRICS 2
Human Resource Metrics
Introduction
Human Resources Metrics are an important aspect of any
strategic Human Resources
Department and organization. There are numerous metrics, both
economic and non-financial
that an organization can draw upon to measure and evaluate the
efficacy of organizational
strategies. Human Resources professionals must be able to
employ analytical skills to help them
understand the data and utilize metrics as an essential
competency to remain relevant in the field.
Further, Human Resources professionals must be able to
influence top leaders in their
organizations by communicating insights into the data the will
help guide the organization in
reaching the strategic goals of the organization.
A General Discussion on HR Metrics
Human Resources professionals have a vested interest in being
able to demonstrate how

the Human Resources function adds quantifiable value to their
business. They must possess the
skills needed to apply measurement techniques to real world
corporate scenarios and the soft
skills to engage in collaborative approaches to problem solving.
In order to achieve this, Human
Resources professionals must understand the importance of
measurement and recognize the need
to align human capital with the strategic goals of the
organization. They must also be able to
identify the correct metrics that need to be measured and
evaluate the effectiveness of current
Human Resources initiatives and programs that are currently in
place. Once they have taken the
time to understand and evaluate, Human Resources
professionals can then use the data to help
support and drive the strategic direction of the business.
The main types and categories of Human Resources metrics
have a lot to do with whether
or not a company is profitable based on their human capital and
revenue. It’s important to
quantify Human Resources data to support business directives
and decisions made based on the

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various data sets. Reporting on these metrics helps to ensure
businesses are diverse and
representative of the communities in which they serve.
Quantifying puts numbers to the stories,
it’s no longer based on just a gut instinct. There are statistics
behind the data. These
measurements help determine the progress an organization is
making toward their strategic
business objectives. These metrics further help guide the
strategic objectives and business
direction of the organization.
Suggested Metrics for a Mid-sized Company
In conducting research into what Human Resources metrics
should be analyzed and
regularly reported for a mid-sized company of 1000 to 3000
employees, I found that revenue per
employee, time to hire, cost per hire, employee diversity,
turnover rates (involuntary and

voluntary), absence rate, healthcare cost per employee, training
ROI, Workers Compensation
rates & costs, and total compensation to revenue are all
important data sets to measure. While
some of these data sets are must haves, such as revenue per
employee and turnover rates because
they tie directly to the bottom line profit of the company, some
such as training ROI are more of
a want or nice to have, since not all companies have internal
training programs available to their
workforce.
In terms of what is important to measure and why, let’s begin
with the most important
metrics. It’s important to measure data such as revenue per
employee to determine if the staffing
levels of your organization are adequate, or if you are under or
over staffed. It’s important to
measure time to hire because there are costs associated with the
vacancy, the longer the position
is vacant, the higher the cost to the organization. It also help
measure whether or not the
recruiting function in the organization is effective or needs
improvement. It’s important to

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measure cost per hire to determine if you are getting the biggest
return on investment when
filling the vacancy, or if you need to employ a different strategy
in where and how you hire.
Measuring both involuntary and voluntary turnover is important,
as this is an indicator of
how you are doing in both attracting and retaining talent within
the organization. If voluntary
turnover is high, you may have leadership issues, or you may
not be offering a competitive salary
or benefits package. If involuntary turnover is high, you may
have issues in the recruiting
process in assessing culture and team fit in to the organization,
or you may need to look at
revising disciplinary policies and procedures.
Monitoring and measuring the absence rate will help Human
Resources professionals
determine if they have attendance issues, and if so, what those

issues may be stemming from.
It’s important to measure healthcare cost per employee to
determine if you have a competitive
offer in the market for your industry and in your geographic
area. It also helps when going out
for a request for proposal to other benefit partners to ensure you
are getting the most from your
benefit partners and the costs remain comparable to going rates
in the industry.
Monitoring Workers Compensation rates and costs is important
to help guide the strategic
direction in safety in the workplace. If costs are high, more
training may be needed in employee
health and safety. This can also assist in determining what the
most common types of injuries
there are in the organization and illuminate root causes for
injuries that will lead to the
opportunity to correct those processes through administrative
and engineering controls. Safety
programs, policies, and incentives can all be implemented to
control and even lower these costs.
These measurements can be utilized to show the relationship
between Human Resources
programs that are implemented and the reduction in Workers

Compensation rates & costs.
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While measuring the ROI on training is important, I would not
classify this as the most
important metric to measure. Not all companies have structured
training programs and policies
in place, although it is a highly recommended practice. If the
organization has a structured
training program in place, it’s important to measure the ROI to
ensure training dollars are not just
being thrown down the drain. An organization should monitor
how much knowledge is being
transferred and applied back on the job. The company should
be able to understand the financial
gain or other benefit realized from any type of training program
that is implemented. An
organization should most definitely have required training in
place such as harassment and
violence prevention and continually measure the effectiveness

of the program.
Collecting Comparative Data on Human Resource Metrics
When it comes to collecting comparative data on Human
Resources metrics, an
organization has many options to choose from, both public and
private. One of the best sources I
would recommend for a local business is membership with an
Employer’s Council. Employer’s
Councils are private member based organizations that collect
data from their members on such
things as turnover, benefits, training initiatives, compensation,
performance management,
attendance, tenure, and the like. With membership in a private
firm such as this, companies can
rest assured they are getting quality data that is essential to
making good business decisions that
are data driven. Data gathered from this type of organization
provides breakdowns by industry,
geographic area and other relevant factors, in order for
companies to have a like for like
assessment between them and the competition. Membership in
an organization such as the
Employer’s Council also helps companies precisely ascertain
business conditions and

purposefully benchmark their budgets and confidently
implement vital strategic business
decisions.
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Companies can obtain public information to compare and
contrast how they’re doing
from organizations such as the department of labor & OSHA
and the Bureau of Labor Statistics.
OSHA is responsible for measuring and monitoring statistics in
the health and safety of the
workforce. Over the span of forty years this government public
service organization has helped
partner with states and employers to ensure the employees are
safe in the workplace and return
home to their loved ones without incident or injury. This
partnership has had a dramatic effect
on workplace safety and helped to reduce accidents and
fatalities over a number of industries.

Through the Bureau of Labor Statistics, another public
government agency, the “Injuries,
Illnesses, and Fatalities (IIF) program produces a wide range of
information about workplace
injuries and illnesses. These data are collected and reported
annually through the Survey of
Occupational Injuries and Illnesses (SOII) and the Census of
Fatal Occupational Injuries
(CFOI)” (BLS.gov). Private professional organizations such as
the Society for Human
Resources Management is also incredibly helpful in providing
Human Resources metrics that
should be monitored and measured to stay ahead of current
trends in the market. They also
manage to do this at relatively low costs to employers and
Human Resources Professionals.
PwC is another private company who collects data to keep their
survey on the pulse of
the workforce. They collect data in order to utilize and gain
insights to make better and more
informed business decisions. They can also help companies
understand emerging technologies
in statistics that will help companies rethink the way they
operate and conduct business

operations. They provide data on such things as diversity,
recruiting, culture and innovation.
This data can be filtered and manipulated based on industry,
company size, and geographic
location, making this an invaluable tool to employers.
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I would recommend a mid-size organization utilize a mix of
both public metric data, data
collected from reputable private organizations, and also utilize
an internal Human Resources
Dashboard that continually monitors the important data in your
chose Human Resources
Management system.
Conclusion
Human Resources metrics are important because they help
analyze the effectiveness of
strategic initiatives and outcomes. Human Resources
professionals must first partner with

executive leaders to help determine what the right Human
Resources metrics are to measure
within their organization. Metrics such as employee turnover,
compensation, health & safety,
performance management, recruiting & onboarding are all
examples of categories that can be
measured and managed within the Human Resources
Department. Depending on the size and
industry of the business, this will be slightly different for all
companies, making it even more
important to have a strategic Human Resources leader at the
helm of the strategic planning
process. In other words, it is essential and imperative Human
Resources Departments have a
seat at the table and are seen as more than simply administrative
or there for culture and morale
issues. Certainly these things play a part in aspects of your
business such as turnover and the
ability to attract and retain the skilled workforce that will keep
your business competitive.
There are numerous ways companies can obtain the comparative
data needed to measure
their effectiveness throughout the organization and in their
industry. Based on the library and

web based research I have conducted, I would recommend a
combination of sources in both
public and private firms that produce reputable data. Examples
of these types of private
companies to obtain data are from local Employer’s Council,
PwC, and a national organization
such as the Society for Human Resources Management.
Businesses can obtain public statistical
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data from agencies such as the Department of Labor, OSHA,
and the Bureau of Labor Statistics
to help drive strategic health and safety initiatives in the
company.
The expected outcomes for monitoring Human Resources
metrics is increased process
efficiencies, increased operational proficiencies of the business,
and highlight the need for
further strategic realignment. Human Resources metrics help to
realize issues within their

business that can be tackled by the use of employee analytics.
Human Resources professionals
must utilize quantitative and qualitative methodologies to
analyze data sets and employ more
visual and storytelling insights to work collaboratively with
leaders in the organization to drive
strategies within the company. After all, if you’re not
measuring it, you’re not managing it, and
you’re unlikely to see further progress in your business.
Leveraging this type of data and Human
Resources metrics enables your business to work smarter, and
not harder.
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Human Resource Metrics
In this exercise, you will do web based and library research on
Human Resource metrics and measurements and write a 7-page
paper.
You are to research relevant metrics for a mid-sized company.
What HR metrics should the HR department of a mid-sized
company be aggregating data for and then analyzing and
reporting to management on a regular basis. Examples of
metrics are Compa-ratio, Market Index, Turnover Rates
(Voluntary and Involuntary), Time to Hire, Revenue per
employee, Total Compensation to Revenue, Revenue per

employee etc.
Assignment Description/Scenario
For your paper you will research, study and then write a report
on the appropriate type of Human Resource Metrics that a
typical mid-sized company with a 1000 to 3000 employee base
should be sourcing the data for, then analyzing the data and
finally, regularly reporting to Senior Management. You are
required research and study up on the various types and
categories of metrics a mid-sized company should regularly
collect and report on.
Your research sources should be books (like the one authored by
Dr. Jac Fitz-enz) and other sources like PricewaterhouseCoopers
Human Capital Analytics services (You will find a lot of
material on this service, and their portfolio of comparative
metrics for which they collect and compile and publish from
various companies - www.pwc.com (Links to an external
site.) (Links to an external site). In the webliography, you will
find a lot relevant material on Human Resource Metrics. When
you Google the term HR Metrics you will also find a lot of
material. Chapter 7 of your textbook is also a great source.
Discuss the various public or private sources of comparative
Human Resource Metrics data. Report what you have found
from library and web research on sources of comparative Human
Resource Metrics. Which sources would you recommend for a
mid-sized company?
To be considered complete, all written assignments must
include proper citations within the body of the paper when
relevant, as well as a Reference section. Failure to cite outside
sources is plagiarism and will be treated as such! You must also
include a title page. Do not include pictures or graphics. All
documents must be in Word format and be uploaded by the
assignment deadline. Quoted material in this assignment should
be <5%.

The following information must be included in your completed
paper. Use the headings outlined below for your paper.Grading
Rubric:
Paper Headings
Description
Points
Introduction
Introduction provides sufficient background on the topic and
previews major points.
5
A General Discussion on HR Metrics
What are main types and categories of Human Resource
Metrics. What do each of these metrics measure? Why are they
important in analyzing the effectiveness of a company's human
capital expenditures? Why is it important to use quantification
in measuring the effectiveness of a company's human resources?
25
Suggested metrics for a mid-sized company
Which metrics are important for a mid-sized company with
1000 to 3000 employees? Elaborate on the reasons why. Which
metrics are must haves, or these mid-sized companies and which
metrics are wants?
30
Collecting Comparative Data on Human Resource Metrics
Discuss the various public or private sources of comparative
Human Resource Metrics data. Report what you have found
from library and web research on sources of comparative Human
Resource Metrics. Which sources would you recommend for a
mid-sized company?
Important! Do NOT simply cut and paste information from web
sites or copy information directly.
20
Conclusion
Conclusion is logical, flows from the body of the paper and
reviews the major points.
10

Mechanics
· There is a hard 7-page maximum for this paper, however, it
should be thorough, yet concise.
· Include all aspects of the assignment criteria, outlined on the
previous page—these are good paper headings.
· There should be minimal quoted material in this paper, <5%.
· Cite in text when using words/thoughts that are not your own.
All sources must be appropriately cited—use APA for in text
and reference list citation formatting.
· Include a reference page for source(s).
· Follow APA formatting for citing and the reference page.
· Put the paper title information on a separate page.
· Use 12 pitch font (Arial, Times Roman), double spaced, and
1" margins as a standard format.
· Do not include extra lines between paragraphs, etc.
· Grammar, punctuation, spelling, etc., will all be taken into
consideration when awarding points.
· Proofread your papers before submitting. Spell check is not
foolproof.
· Re content, if you make a statement, for example "all people
who break the law should improve their communication skills to
stay out of jail," you need to substantiate that statement. If that
statement is not your own thought or a statistic, cite. If it is
your opinion, state that and explain what led you to that
conclusion. Provide enough information to validate and explain
the statement.
· Treat these assignments as real-world situations. This will
give you the opportunity to practice how you would research
and provide information as an HR professional.
10
Total
100

HUMAN RESOURCE METRICS 2Human Resource MetricsIntroduct

HUMAN RESOURCE METRICS 2Human Resource MetricsIntroduct

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