Metrics are not unique to the HR profession. They are used in almost every area of business, in government, and in education. A metric is simply a way to quantify, measure, and track key performance indicators. In education, the key metric is often student performance on standardized tests, which is then used to drive educational priorities to improve performance on the next round of tests. In HR, metrics are used to measure and track the performance of most companies' largest investment--its investment in human capital. More to the point, HR metrics measure the performance of a company's investment in hiring, training, and retaining employees.
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Download Now The role of HR is changing as fast as technology and the global marketplace. Historically, the HR department was viewed as administrative overhead. HR processed payroll, handled benefits administration, kept personnel files and other records, managed the hiring process, and provided other administrative support to the business. These functions were viewed as administrative necessities but not as integral parts of the core business. Today, many of these old administrative functions have been automated and/or outsourced. The positive result of these changes is that HR professionals have the opportunity to play a more strategic role in the business.
Business leaders focus on revenue, profit growth, market share, new products, and increasing capacity. These can all be measured using metrics that describe the current situation, compare current numbers with previous years' or with a competitor's position, and quantify goals and measure progress. By measuring the current situation compared with quantifiable goals, business ...