The Importance of HR Data, Metrics, & Analytics
There is no doubt that knowing the sales revenue and net profit margin are important metrics to know when running a successful business. However, important metrics that often get overlooked are People Metrics or “HR Metrics.” These metrics include, but are not limited to; Employee Performance, Turnover, Retention, and Employee satisfaction. These metrics can be a great indicator of the direction your business is heading. Moreover, people metrics can provide just as much insight about an organization as other traditional business metrics.
Like all business metrics, HR Metrics should follow the “CARE” model- all data should be Consistent, Accurate, Reliable, Effective. This is the best way to ensure that metrics are not biased or misleading. After the data has been collected and the metrics have been determined, it is essential that businesses analyze the metrics to determine what areas are doing well and what areas could be improved. For example, if employee satisfaction is low in a specific department the necessary steps should be taken to investigate what the root of the issue is, and how to improve the situation at hand.
Finally, these metrics should continuously be analyzed on a regular basis to look for trends and benchmarked against a standard. At CROFT & FROST we believe that following this process for HR Metrics can help improve the employee experience.
By: Soni Whalen, Human Resources Assistant at CROFT & FROST