As a society, we measure everything, right from the ingredients in a recipe to the economy/mileage of a vehicle. Similarly in business, sales turnover, profits and shareholder value are perhaps the most commonly used indicators or metrics to measure the extent of success or the lack thereof. In the current scenario, even the HR function is asked to prove its value and provide measurable results but the application of HR metrics to assess the effectiveness of the HR function has been rather limited until now.

The natural questions that arise in any debate concerning the use of metrics is “What is the purpose of all these metrics?” and “We already have so many measures – what more do you want us to measure?”. Well, these measures aid in taking strategic decisions. A single number in itself may not be sufficient to devise a strategy, but a combination of several measures might give a clear indication of the existing problems and aid in timely action. For example, if a company realizes that its attrition rate is 10%, there really is no need to get alarmed and start looking at improving upon employee engagement and other similar aspects. This measure should be seen in conjunction with the overall industry figures and historical data which might suggest that the average for the industry is 15%.

The key to the effective utilization of metrics lies in choosing the minimum number of metrics which can provide all the information that is required by the management. In this issue we take a look at the metrics related to the most common function of HR i.e. Recruitment. From the micro level perspective of one function of HR, we move towards a macro perspective by looking at the three levels of HR measurement systems and the need for HR to measure up. We also take a look at the future of HR metrics and how these will aid in the progression of HR from being a business partner to a business driver. In this issue, we also get invaluable insights into the thoughts and experiences of the HR Heads of two of the most successful organisations in the field of IT/ITES and how these organisations measure up their HR internally to match business requirements.

We hope that this issue clarifies some of the problems related with HR metrics and serves as an useful aid for any HR metric implementation initiative.

To send us feedback or request for a soft copy, please write to us at hrconnect@nasscom.in

Warm Regards,
The Editorial Desk