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Why Data Should Matter To The Everyday HR Leader
- nettime solutions staff
Work smarter, not harder. That seems to be the trending pattern for many HR administrators, managers, and thought leaders within the industry. With all of the talk about the types of HR data and which measurements should be reviewed and analyzed, it’s difficult to determine which key metrics are the most pertinent to you and your business.
According to Nick Bontis, an associate professor at McMaster University, there are many metrics you can analyze, but the main three he suggests reviewing are activities that involve individual progress, activities that involve social involvement as a group, and activities that involve the firm’s overall growth and success.
In his interview (which highlighted his keynote speech at the HRPA conference), he suggests utilizing predictive analytic metrics to review organizational performance. Using human capital benchmarking and measurements to better understand where a company is, and how they want to improve and/or continue to grow, is essential to progress.
The two key metrics that he suggested tracking were:
- Revenue per Full Time Employee – Use this measurement against that of your competition as a baseline to analyze productivity.
- Invested Capital per Full Time Employee – Will determine the amount of money that is invested into every full-time employee and whether or not that matches up against your expectations.
Bontis also revealed that employees’ opinions are invaluable.
Collecting their feedback can help your HR department gain a measurable understanding of what improvements are needed to increase productivity levels. In order to gain insight, he suggested the process of sending a monthly survey to a small fraction of your staff (depending on the size of your company). The survey could then be circulated throughout the organization to keep a steady flow of engagement, without overwhelming your employees by requesting too much feedback.
Regardless of your outlook on metrics, HR administrators and managers are the main spokespeople for the employees of an organization. It’s up to the HR staff to ensure that employees are being taken care of. Thus, it’s important that they can easily track and measure individual, group and company performance by actively collecting and reviewing employee feedback.