Jun 16, 2006

On HR Metrics

This post is owes its genesis in a conversation I had with a friend who works as a HR consultant.

She had called me up and was trying to understand the metrics that are usually reported by the training and development group within organizations and how they might make more sense.

Then it struck me that training metrics are symptomatic of HR metrics not being aligned to business value and therefore wasting individual's energies.

The power of metrics is frankly underrated, and that is where the disconnect between stated objective and achieved reality often starts.

Take the example of training and learning metrics.

The stated objective of the training group is to increase individual and team performance to meet the strategic needs of an organization. That is the outcome expected from this group.
But the metrics that are tracked focus more on inputs, like

1. are all employees getting the promised x hours of training?
2. Do most of the training get ranked "very good" by majority of the participants?

The metrics focussing on output linked to performance however, are done few and far between. One of the reason is that organizational systems and processes are not designed to catch this information and extra manpower is used for doing so.

And this is the reality for metrics that are tracked for Recruitment, Compensation and Generalist roles too.

HR is trapped in tracking efficiency metrics, while business needs metrics that focus on effectiveness.

More posts on how HR can make this transitions coming up.