1. Innovative HR Strategies for
Maximizing Business Impact – HR
Metrics
M/s Sneha Sankpal

2. Objectives of the Study
• to understand the meaning of HR Metrics
• to highlight various HR measures need to be
considered.
• to identify Centers of Excellence for HR Metrics
• Case Studies
• Future of HR Metrics

3. Current Scenario
• LPG : Liberalization, Privatization Globalization
• Aggressive Competition
• Technical advancement
• Workforce diversity
• Mergers and Acquisitions

4. Role of HR Leaders
• Lead the Change
• Find new effective ways to sustain competitive position.
• Design programs which must be aligned with the
strategy
• Provide the link between strategy, people and results.
• Must operate as an integrated system.

5. HR Metrics
“What gets measured, gets managed; What gets managed,
gets executed” - Peter Drucker
“ After 30 years studying HR Departments, I have found the
largest single difference between a great HR department and
an average one, is the extensive use of metrics.” Dr. John
Sullivan , HR Metrics the World Class Way
The key indicators in every HR initiative that can be used to
measure the impact in terms of ROI

6. Various Metrics and their descriptions
Metric Types Description
Rate Proportion of one or more parts to a whole of 100%
Ratio One number relative to another, often expressed as a reduced
fraction
Composition Breakdown of a whole into its parts, showing the number or
percentage allocated to each
Index Weighted combination of disparate data into one number relative to a
scale or anchor
Volume Number of people or units with a characteristic, or occurrences of an
event
Cost Organizational expenses, revenues, profits, or value
Time Process cycle time, volume of time invested, or timeliness of events
Quality Performance of people, processes, or systems
Satisfaction Participants’ subjective perceptions of a process, program, or
experience

7. CIPD model of HR Metrics

8. Important HR Measures for the Development
of Metrics
HR
Measures
HR
Effectiveness
HR EfficiencyHR Impact

9. HR Centers of Excellence
• Critical Talent Management and Retention:
Microsoft UK focuses attention on it’s A list,
top 10 percent, performers, regardless of role
and level.
• Recruiting Effectiveness
• Productivity
• Performance management
• Compensation and Pay Equity
• Training and Development

10. Case Studies
• Microsoft started its Indian operations in the year 1990.
The headcount at Microsoft India Development Center
(MSIDC) at Hyderabad grew from 20 in 1998 to more
than 1,500 by the end of 2008, making it the company's
second biggest development center in the world. The
company used HR metrics to build accountability of the
HR function toward business success along with Talent
management and employee retention in the Indian IT
industry, Managing knowledge workers and their work-
life balance and HR metrics and Return on Investment
(RoI).

11. Contd…
• In 3 weeks Oracle was able to predict which top
performers were predicted to leave the organization and
why - this information is now driving global policy
changes in retaining key performers

12. Proprietary Metrics is the next big thing in
the world of Talent Management.
• The idea that you can create a template that will work
forever doesn’t happen in any business … There’s some
really, really bright people in this business. You can’t do
the same thing the same way and be successful for a
long period of time. — Billy Beane
• Corporate examples of these proprietary metrics include
Google’s “retention metric” for predicting which
employees are about to quit and its “hiring success
algorithm” for predicting the characteristics that lead to
new hire success on the job.
• In a Competitive World, Metrics Must Also Be
Continually Improved

13. Thank You

14. Questions????