Core HR Metrics and Reporting Practices to Establish a Robust HR Decision Support Capability.

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Wowledge Expert Team
Principal level
127 Wows earned

This guide is part of a progression set comprised of Core, Advanced, and Emerging HR Metrics & Reporting practices.

What it is

The structured measurement and presentation of employee and human resources process data that provides quantitative insights to drive objective and educated decision-making by HR and functional managers.  

As with other corporate functions, HR and Talent processes generate a wealth of information that can be used to evaluate the efficiency, effectiveness, and impact of various strategies and programs. This data is analyzed with the purpose of monitoring and improving the effect of HR processes, practices, policies, or programs on human capabilities in the workplace.  

HR Metrics & Reporting differs from "Workforce Analytics" in several ways.  It covers the most basic types of data analysis and analytic techniques, and it relates to the mostly descriptive and relative analyses, using basic volume, time, and cost metrics with some basic ratios such as cost per hire or (average) time to fill. Workforce Analytics, on the other hand, 1) leverages more complex or indexed HR data (e.g., top performing senior systems engineers in the UK), 2) is often combined with business data (e.g., sales performance), 3) uses more advanced statistical techniques (e.g., from correlations to predictive analyses to AI-generated insights), and 4) targets insights to business leaders rather than primarily HR managers and their leaders.

Why use it 

The data generated while conducting HR's base operations - running processes, practices, policies, and/or programs - should be used to get an indication of the health of each of those, the extent to which they are achieving their designed purpose.  Such information creates a basis for observations regarding the efficiency, effectiveness, and impact of those operations. 

These types of basic insights enable management to monitor the performance of and improve its processes such as cost per hire, workforce health indicators including turnover, and the impact of critical employee programs such as quality of new hires.     

A robust HR Metrics & Reporting capability is considered critical to both the evolution and contribution of the HR function to the business.

Practice guides at this level

Understanding strategic business needs and translating those to HR metrics.

The alignment of metrics to key organizational strategies and tactics is essential for the creation and development of quality metrics that are relevant to the business's needs.

Defining calculation methods, data, and sources to be used when creating HR metrics.

Identifying the specific location of data in databases and documenting the calculation methods that will be used, ensures reliability and consistency across time and reports.  

Identifying the timing and type of analysis to be used for each HR metric.

The timeframe covered and the level of analysis for each metric will be calculated for display to enable uniformity in reporting.

Establishing relationships with partner functions to support the development of analysis and presentation techniques.

A cost-effective way to develop the relevant analysis and reports needed is for HR to partner with other functions where such expertise is more common.

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