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HR Metrics: Data for the Bottom Line


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Human resource metrics not only allow HR performance to be assessed, but it also allows the business to make strategic decisions that impact the bottom line. Ongoing year-over-year numbers give insight into costs and trends associated with turnover, employee engagement, performance, and human capital costs that are often not as visible as others. Aligning metrics with business strategy can add value and drive organizational effectiveness.

Not only can metrics help in driving strategic business decisions, but they can also identify potential problem areas and keep an organization out of trouble.

As a non-profit generating part of the business, every decision made by Human Resources should be driven by data that demonstrates effectiveness, efficiency, and value for every dollar spent.

For example, companies that participate in E-Verify but fail to use it every time may face fines from $250 – $2000 per occurrence. Failing to do background checks or pre-employment drug screens as prescribed by a company’s policy exposes it to potential legal liability in the event of an accident or intentional action on behalf of an employee.

Metrics allow organizations to know they are creating a strategy for where they want to get to. If the goal is to fill jobs faster you need to how long it currently takes, if it is to reduce costs, you need to know not only what you are spending, but what you are getting, if it is to be more efficient, you need to know where time is being spent.

I have created dashboards for a number of organizations and have personally seen the difference that metrics can make to not only the bottom line but the overall success. While there are systems and programs that allow for the automation of HR metrics and reporting, useful data can be aggregated in a simple format using basic tools and programs available in most organizations.

Anthony T. Eaton
Anthony T. Eatonhttps://espressotalks.com/
ANTHONY is a seasoned, certified Human Resources professional with more than twenty years of experience working in a range of industries including non-profit, banking, utilities and government. In addition, he is an accomplished leader and author with a passion for personal and professional leadership and development. Believing that every person has the opportunity and potential to lead, his focus is on helping others be the best leaders they can no matter who they are or position they hold. In 2013 Anthony took his leadership message online with a blog. Initially posting an inspirational quote of the day he then began doing interviews with a wide range of individuals from diverse background about their personal journey, leadership experiences, and thoughts. In 2015 he created a website and added feature articles, a second interview series WOMEN ON LEADERSHIP along with a book review. In 2016 he published his first book LEADERSHIP CONVERSATIONS, a series of interviews on leadership and more. Anthony’s purpose is to inspire and motivate others by initiating conversations about what it means to be a leader in the broadest sense of the word.

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