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SEVEN GUIDING PRINCIPLES FOR PEOPLE METRICS | www.corecentive.com

SEVEN GUIDING PRINCIPLES FOR PEOPLE METRICS

As HR leaders continue to be more and more important in driving organizational change, the need to have useful human capital analytics is critical.  This ability to look at effectiveness and efficiency in human capital is going to further HR within the c-suite.

Let's keep this simple.  In any company revenues are driven by two types of investments.  The first is human capital and the second is financial capital.  The cost of human capital far exceeds those of financial capital for most companies.  So if HR was in short, your financial advisor, wouldn't you want to understand how your investments (in human capital in the HR case) were performing?  Absolutely you would.

So as you look beyond the basic measurements such as turnover and cost per hire, here are Vienna's seven guiding principles for human capital metrics that will help you drive such corporate change and reach objectives.  

SEVEN GUIDING PRINCIPLES FOR PEOPLE METRICS

1. Measure the organization’s entire investment in human capital—employee costs, costs in support of employees, and costs in lieu of employees.

2. Use standardized, auditable data sourced from the organization’s financial system.

3. Define and measure data consistently over time.

4. Yield measures that are few in number, supported by diagnostic layers of detail.

5. Answer important strategic questions about what drives business results.

6. Provide a credible and clear line of sight between human capital performance and business performance.

7. Apply straightforward methods that are resistant to being “gamed.”  

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SEVEN GUIDING PRINCIPLES FOR PEOPLE METRICS