For human resource departments and professionals around the world, one of the most often talked about topics is HR metrics of success. Measures that the function can use to demonstrate to the business leaders that they are not only adding value, but strategic in nature. This is as true for HR departments as it is any other function in a business. Often these are called Critical success factors or key performance indicators
On the surface this may appear to be an easy thing to do, but as there are few legal requirements for HR (unlike financial systems). This means that as firms grow, so their HR need changes. They add the services and functions (often from existing staff) on a “this will help us” basis. No real plan or strategy – just a “we have a problem with x lets fix it”.
This means that no two HR functions are alike. This makes knowing what to measure more difficult. This is compounded by the fact that what an HR team do in one company is done by line managers in another, and vice versa. So again what is appropriate for “HR” to measure varies.
Recently I came across this graphic on HR metrics which shows some of the factors that could be considered for measurement.
It is taken from surveys of top firms, and while many of the measures will not be relevant, at least it provides a useful starting point.
What is interesting is the lack of firms measuring recruitment, often a central HR function.
What other factors do you use?
At the time of writing (Aug 2012, it appears that the originating site is offline, so I cannot confirm the dates of this data)