As the primary source of economy is shifting from physical to intellectual capital, the role of HR is becoming increasingly critical to the overall success of the organization.
In today’s business market, depending upon industry, up to 57% of operating cost in an organizations goes to Human Capital Management. In an increasingly dynamic environment led by cost-cutting and tight budget justification, the role of HR is increasingly becoming critical to the organizational success.
Numbers are the Universal language of business as they are expressed in the unit, which is easily understandable. Business leaders prefer to take decision on measurable and verifiable data. HR's traditional model of using gut feeling and impulsive emotions for workforce decision making is woefully inadequate. A key responsibility of HR is to articulate the logical connections between progressive HR practices and Organizational performance, and demonstrate those connections with data and ratios.Shareholders and CEOs measure results. They are interested to know how the investment in Human Capital impacts the top and the bottom line of an organization. HR leaders are expected to use rigorous, logical, and principles-based framework for showing connections between Human Capital Investments and Organizational success.
“Business Leaders judge HR strategic role NOT on be the basis of emotions or activities, but by the impact of their actions on the business, which is always measured in financial terms.”
Benefits of Measurement
HR Metrics is now a "HOT" arena in HR. There is an urgency to reach that next level of talent analytics where HR teams can make a greater business impact. If you are developing HR Metrics Center of Expertise in your organization, we can assist you to:
- Identify measurement opportunities; diagnose HR financial and operational measures, understand the messages in measured data, with a view to become competitive, cost effective and yet responsive to business needs.
- Quantify HR department's contribution to the overall bottom line, through solid, factual, and verifiable data and justify toughest Managerial decisions with easy-to-use mathematical formulas.
- Use Metrics as measurable KPIs Result- Based Measurable KPIs to quantify the performance of HR functions. Integrate measurement Metrics with action plan through benchmarking HR Benchmaking in order to achieve and surpass industry standards.
- Upgrade standing in the organization, through accomplishment of Organizational Strategic Goals and Objectives.