Metrics are quantitative measurements of performance or production. An HR organization can use metrics to track progress towards strategic objectives. By using metrics, an organization can ensure that progress and milestones required to fulfill the mission are being met. However, before defining and implementing a metrics program, it is important to understand how metrics support the organization’s mission and objectives.

1. Guide to Defining Missions,
Objectives & Metrics
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2. Developing Missions, Objectives and Metrics
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3. Developing Missions, Objectives and Metrics
Introduction
Metrics are quantitative measurements of performance or production. An HR organization can
use metrics to track progress towards strategic objectives. By using metrics, an organization
can ensure that progress and milestones required to fulfill the mission are being met. However,
before defining and implementing a metrics program, it is important to understand how
metrics support the organization’s mission and objectives.
Mission
The organization’s mission statement establishes the purpose of an organization. While it might
appear to be obvious or inherent to the organization itself, a clearly defined mission statement
is something that requires both time and effort. Since all other objectives, metrics and business
strategies revolve around an organization’s mission, it is essential to have a practical, working
mission statement that can inspire action at all levels within the organization.
A mission statement for a community hospital may be: “To be the best performing community
hospital in the county through the process of market driven continuous improvement.” This
mission statement sets a standard or goal for the organization (“to be the best performing
community hospital in the county”) while also defining exactly how this standard should be
attained (“through the process of market driven continuous improvement.”)
The organizational mission statement should act to guide all aspects of business within that
organization. Separate departments or branches of the organization can create mission
statements specific to their function within the larger organization. Their specific mission
statement should, of course, help to encourage the accomplishment of the larger
organizational mission.
A mission statement for the Human Resource Department of the same community hospital
mentioned above may be: “Maximize stakeholder value through recruitment, development and
retention of human capital.” This mission statement explicitly states the goal of their
department within the organization (“maximize stakeholder value”) while providing a plan for
how their goal should be accomplished (“through recruitment, development and the retention
of human capital.”) In this example, the HR Department’s mission statement works to
accomplish the specific goals it has defined while supporting the goals stated in the hospital’s
mission statement.
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4. Developing Missions, Objectives and Metrics
When developing the mission statement, it is important to ask the following questions:
Does it make sense?
· A mission statement must be explicit and easy to understand, support the mission of
the organization as a whole and make sense to all employees.
Will it stand the test of time?
· A mission statement must retain validity over the long term. In other words,
individuals should ask: will this statement still be pertinent and valid - tomorrow,
next month or even, next year? The mission statement should define the
organization’s function and purpose over an extended period of time. A good
mission statement will encourage the organization’s growth and accommodate any
small changes that are certain to occur as the organization continues to develop.
Does the departmental mission statement support the organizational mission?
· The organizational mission statement reigns supreme over departmental or branch
mission statements. It guides the mission statements that are created by smaller
units within the organization. It is each unit’s responsibility to determine their
function in accomplishing the larger organizational mission.
Objectives
After creating the mission statement, an organization should establish its objectives. Objectives
are specific and measurable deliverables used to fulfill the mission. Sample objectives for a
Human Resource Department might be: to place quality applicants in all positions while
recognizing the value of diversity; to place emphasis on high level performance or to place
emphasis on competitive efficiency.
When developing objectives, it is important to ask the following questions:
Do the objectives support every aspect of the mission? Do they leave anything out?
· Objectives should define a plan to attain the organizational goals outlined in
the mission statement. They should be specific and set high goals that
encourage the growth and fulfillment of both individual and organizational
mission statements.
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5. Developing Missions, Objectives and Metrics
Are the objectives stated clearly?
· The objectives should be easily understood by everyone and be defined in
terms that motivate the execution of the mission statement.
Are the objectives measurable?
· To determine progress, organizations must measure the results of their
performance against the objectives which they are implementing.
Metrics
Mission statements and objectives are only worthwhile if effective measurement tools are in
place and are used to gauge performance. The HR metrics in this report provide those effective
tools. The following demonstrates how these HR metrics can be used to measure performance
towards the objectives set above.
Objective: To place quality applicants in all positions while recognizing the value of
diversity.
Supporting Metrics:
· Average new hire rating of 3.75 based on pre-recruiting requirements.
· Average employee performance rating of 3.5 based on position performance
standards.
· Annual organization audit.
· Succession and development plans established for all critical employees.
· Development plans established and followed for 70% of all employees.
Objective: To place emphasis on high level performance.
Supporting Metrics:
· 85% of new hires start on time.
· Average manager service rating exceeds 3.75 based on service agreements.
· Average employee service rating exceeds 3.5 based on established performance
standards.
· Average new hire satisfaction rating exceeds 3.75.
· Average candidate satisfaction rating exceeds 3.5.
Objective: To place emphasis on competitive efficiency.
Supported Metrics:
· Compensation for 75% of job groups is within 5% of associated benchmarks.
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6. Developing Missions, Objectives and Metrics
· All costs are within 5% of associated benchmarks.
Metric measurements should be limited to tangible outcomes or results. Just as with both
mission statements and objectives, it is essential that everyone understand the metrics and
how they will be used. Questions to ask before implementing a metrics program include:
· Do the metrics measure outcomes or results?
· Does everyone involved understand the metrics?
o What do they measure?
o How are they calculated?
o What drives the metrics?
· What do the HR customers think of them?
Summary
Measurement can be very empowering and is the best way to highlight areas that need
improvement. Successful human resource professionals realize that measuring performance
allows them to establish business-partner relationships with their customers. However, before
implementing a performance measurement program, make sure that your measurements
support your organization’s mission and objectives. Once the HR mission statement and
objectives have been established, you can choose how to measure performance through
metrics.
To assist in the process, the follow sections contain a comprehensive list of the HR metrics that
an organization can use to measure everything from benefits and group performance to safety
and diversity. These metrics were collected from research, interviews and survey submissions.
Each metric was tested to make sure it results in logical and useful answers beneficial to HR
professionals. Each metric listed in this report provides a description of the specific activity to
be measured, the formula used to calculate performance, a practical example of its use and the
pros and cons of each measurement.
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