How it works

Aligning metrics to key organizational strategies and tactics is essential for creating and developing quality metrics relevant to the business's needs. Understanding those strategies and their component parts, followed by an assessment of the relevant HR goals or objectives linked to those, yields process or talent outcomes that flow from the successful execution of the objective. The core of such an assessment involves a combination of business knowledge and creative thinking related to the planned or desired people-related outcomes of the strategy. 

looks_oneReview business strategy and needs

Reviewing the organization's strategic plan and interviewing key executive stakeholders are ways to understand the strategies and tactics selected to achieve goals and objectives. Choosing between or conducting two types of reviews helps determine the primary (business and talent) direction the company will or should focus on.

• Studying the strategic plan or observing and participating in executive staff meetings reveals key strategic drivers and new initiatives that could impact HR. For example, strategic changes such as "expand into ," "reduce production costs," or "new product development" are likely to require new or expanded HR initiatives that focus on recruitment (in new geographies), training (in more efficient production or quality methods), and rewards and recognition (to incentivize new product ideas). Consequently, metrics such as total new hires, offer accept rate, % production employees trained, and new product incentives paid might become metrics to create or continue. 
  
  
• Interviewing executives helps understand significant management or employee pain points or concerns. It is critical to choose a wide variety of top and senior leaders to get input and feedback from, typically using a standard set of open-ended questions such as: "Why are so many of my top performers leaving?", "How well-paid are my salespeople relative to the market?", "What is the average tenure of my diverse employees?", or "What is the offer acceptance rate of candidates from my direct competitors?" After collecting and compiling responses and questions, it is possible to identify trends in the key questions or concerns that arise. Those questions should be answered with HR Metrics.
  
  

looks_twoIdentify talent strategies, issues, challenges, and shortcomings that require focus and attention