In my conversations with HR leaders, I’ve discovered that technology and data are common topics of discussion. Several years back, HR leaders spoke of their visions and plans for HR technology. Today, many report that they have executed these visions and plans and transformed how their HR functions use technology.
Modern and integrated HR technologies provide cleaner and more consistent HR data and make it increasingly practical—in terms of cost, capability, and time requirements—for HR to use measures. But why use measures in HR? In fact, there are many reasons to use measures in HR. Following are seven of the most common reasons that we hear about at APQC.
We see HR using measures to:
1. Assess performance against peers and competitors to remain competitive.
Example: Benchmarking the number of HR FTEs (full-time equivalents) to determine if the HR function is overstaffed or understaffed compared to organizations of the same size and in the same industry
2. Set performance targets to build accountability and mobilize HR staff around common goals.
Example: Identifying performance targets to include in the HR plan and scorecard
3. Establish a baseline of current HR performance levels to compare future performance against.
Example: Documenting current performance levels before centralizing talent acquisition processes
4. Track performance over time and post-transition or post-transformation.
Example: Monitoring whether HR goals related to employee engagement are being realized
5. Finetune performance by identifying opportunities for improvement.
Example: Benchmarking internally and against peers to find opportunities to improve HR shared services center performance
6. Build a business case for HR investments and initiatives.
Example: Using industry data to illustrate how HR process automation could improve the employee experience and HR efficiency
7. Demonstrate ROI of HR investments to business leaders.
Example: Providing evidence of the benefits that a new HR analytics team has realized for the function and the business
Measures can help HR functions stay competitive and effectively use their resources to meet critical business needs. APQC research has shown that best-in-class HR functions are significantly more likely to use measures. Measures help these HR functions have better relationships with the business and demonstrate the value of HR to business leaders.
Does your organization use measures—or want to use measures—in HR?
APQC members can learn more about measurement in HR from our Introduction to HR Measures Webinar Series.
- Introduction to HR Function Measures—On demand
- Talent Acquisition Measures—On demand
- Learning and Development Measures—Register today
- Rewards and Retention Measures—Register today
Not yet an APQC member? Check out these complementary APQC resources:
HR Strategy and Planning: Snapshot of Top Performance
Talent Acquisition: Snapshot of Top Performance