It is increasingly assumed that HR professionals have a working knowledge of the key tactical and operational metrics that measure the role and the value of HR. However, as HR moves into higher positions within their organizations and as managing human capital becomes more critical to their organizations’ success, HR professionals must increasingly also have a working knowledge of the key strategic metrics. That means that HR professionals must be able to identify and present key HR metrics that will help their organizations make critical decisions, identify and plan for risks, and improve the bottom line.
Strategic HR metrics play an increasingly important role.
Such metrics as the Revenue-per-Employee (RPE) and the Return on Investment (ROI) are now standard measurements and ones that should be regularly measured human resources. Other metrics such as Implemented Impact of Innovations on Corporate Revenue and the Recruiting and Employer Branding Effectiveness are also gaining attention. Together these and other important metrics are becoming important metrics that should be measured and watched.
As organizations increasingly place value on business metrics, HR will need to identify and update the strategic and operational metrics that it measures and reports.