Welcome to your monthly HR e-newsletter!

First I would like to thank you for your continued readership and welcomed responses, we at IIR appreciate all the feedback that we get in order to keep our readers satisfied. This month we will focus on HR metrics to prove the value and return on investment of human capital and the HR function to senior management.

"HR metrics give HR professionals a chance to prove their value to senior management, but they notoriously fail to grasp this opportunity. They focus instead on tactical measures, which give useful information and work fine in isolation, but don't tell the full story. They only prove the existence of HR they don't prove its value."  Dave Millner

www.personeltoday.com-2009

During these recessionary times it is vital for HR practitioners to prove that their function plays a strategic role in the organisation and does create a return on investment that is quantifiable.

While we all know that Human Resources are the most vital asset of any organisation, and now there is research to prove this true. Recent research has revealed that the efficiency level of an organisation is fundamentally dependent on its human capital management (HCM). The study showed that over 80% of managing directors believed Human Capital Management to be vital for the fundamental success of a business, while effective measurement is crucial to deliver effective HCM. Comprehensive human resources measurement policy enables the organisational management to collect consistent information about the employee population, which alleviates decision-making and ensures that management and development activities remain relevant with overall business strategy. Click here to read the rest of the article

HR metrics programmes when used efficiently can provide solid results and facts based on the outcomes of the HR strategies that have been implemented. These results and facts should be utilised as sound analysis and proof for making new business strategies and decisions and requests for more resources to implement new HR policies.

Top tips for getting HR metrics right

·         For HR to demonstrate its value to an organisation, it must measure its performance against targets

·         While in the past measuring performance against targets was time-consuming, it's now possible to invest in software that will automate the collection and analysis of this data

·         Key metrics to consider include: time to recruit, cost of recruitment, retention rates, promotion rates, training and development provision and take-up, gender and racial equality, absence and productivity per employee

·         The metrics that are most suitable for your organisation are those that link in to your business objectives. HR should always aim to set its metrics in isolation and the process must always begin in consultation with senior management

• Business objectives change over time, and so must HR metrics click here to read more

Hope this helps

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