The debate on what key HR metrics to track has shifted into a question of how to best quantify HR’s effectiveness. The shift away from key HR metrics is in large part due to the dramatic differences between any two businesses, such as industry, size, geographic location, for-profit or not-for-profit status, internal practices, and corporate philosophies. Rather than rely on predetermined benchmarks, organizations should ultimately determine their own measures of success. In order to determine what HR metrics and measures should be tracked, businesses should identify the key HR initiatives that align with corporate strategic goals.
HR initiatives that lend themselves to a quantitative analysis can generally be classified into one of three categories:
- HR Costing
- Evaluating Intangibles
- Measuring the Effectiveness of HR Initiatives
