By Jamie Barber, consultant IntroNet
When discussing the wider issues facing the HR industry with clients it’s likely that the topic of metrics will have cropped up at least in passing. As professional recruiters, you’ll already be familiar with the suite of performance indicators that measure recruiting effectiveness, but you may be less up-to-date with the world of HR metrics.
The more you are able to converse in the language of HR and senior management the more credibility you will be seen to have. And just imagine being able to offer clients friendly advice on the use of metrics in delivering tangible business benefits.
Nine steps to metrics excellence
The steps outlined below are not intended to be fully comprehensive or applicable in every circumstance, but they should give your clients some idea as to where and how to start.
1. Re-examine business objectives
Has your client revisited organisational strategic business objectives recently? They should form the cornerstone and ‘reason why’ of any metrics initiative.
2. Take the ‘CUP’ test
Does each set of data make a contribution to the organisational business objectives? Does it provide an insight into whether resources are being utilized at their optimum level? Does it make any assessment of productivity which could lead to efficiency gains? If each set of data does not address at least one of these three criteria, then question the usefulness of continuing to collect it.
3. Keep it simple
‘Information overload’ is a greater threat to the effectiveness of HR than a complete lack of measurement. Research has suggested that in order to focus on the priority areas, around five key metrics is a good place to start.
4. Decide what types of metrics to capture
Metrics fall into three principal categories: historical, real-time ‘snapshots’ and forward-looking. In order to present a comprehensive picture, the metrics suite should ideally contain all three, though the exact proportions will vary depending on industry type and strategic business objectives.
5. Establish a benchmark
The status quo should be measured so that the future impact of any changes can be assessed. Your client may also benefit from benchmarking against other similarly sized organisations or industry ‘best of breeds’. For more information try the Saratoga Institute, or for a more UK-centric perspective The Benchmarking Centre.
6. Integrate data collection into existing workflows
To ensure integrity, data should be collected automatically without the need for the manual maintenance of parallel systems. This is the arena in which Enterprise Resource Planning (ERP) and Applicant Tracking Systems (ATS) have a key role to play, especially if the organisation has departments scattered across the globe.
7. Allocate resource for analysis
Only by undertaking rigorous analysis will HR be able to transform data into meaningful and valuable strategic information. However, avoid ‘paralysis by analysis’: make the results too complex and they may be dismissed out of hand.
8. Have the power to act
The gathering of metrics is a futile exercise in administration if HR lacks the teeth to act promptly on the findings.
9. Close the loop
Good business practice stipulates that all business processes and procedures should be subject to periodical review. The gathering of metrics should be no exception. Build in a review date.
The prospect to your client of using metrics strategically to take real competitive advantage should be extremely enticing. The payoff for you as a recruiter is that you are perceived as an HR expert and trusted partner.
This won’t do your business any harm at all.
