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What metrics should you track to measure HR strategy and transformation success?

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If you are leading or involved in a HR strategy and transformation project, you need to track and measure the impact of your actions on the organization and its people. But what metrics should you use to assess the success of your HR initiatives? In this article, we will explore some of the key indicators that can help you evaluate the effectiveness of your HR strategy and transformation.

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Dirk Burkamp

Regional Director / Workday Practice Lead DACH at Strada
Suhas Dutta

Driving business value - Strategy Consulting to tech powered execution. Digital Transformation. Growth, innovation, &…

1 Alignment with business goals

One of the first metrics to track is how well your HR strategy and transformation aligns with the overall business goals and vision of the organization. You need to ensure that your HR initiatives support the strategic priorities and objectives of the business, and that they are aligned with the values and culture of the organization. You can measure this alignment by using tools such as balanced scorecards, strategic maps, or alignment surveys, which can help you identify the gaps and opportunities between your HR strategy and the business strategy.

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Suhas Dutta

Driving business value - Strategy Consulting to tech powered execution. Digital Transformation. Growth, innovation, & efficiency for promoter-led companies. | Keynote Speaker | Photo Expedition Leader
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The first thing is to figure / define what is HR's role in an organisation. With time, managers have continued (increasingly) abdicating from their people role and handing it to HR. That is the start of a problem. . HR leaders can gain insights into the impact of their initiatives on employee engagement, productivity, turnover, and overall business performance. Some metrics could be tracking include time to fill, cost /hire, quality of hire, employee satisfaction, employee engagement scores, retention rate, training participation rate, time to competency, knowledge retention, revenue /employee, C-Sat, and employee productivity.

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2 Employee engagement and satisfaction

Another important metric to track is the level of employee engagement and satisfaction in the organization. Employee engagement refers to the degree of commitment, involvement, and enthusiasm that employees have for their work and the organization. Employee satisfaction refers to the extent to which employees are happy and content with their work environment, rewards, and opportunities. You can measure employee engagement and satisfaction by using tools such as engagement surveys, pulse surveys, feedback platforms, or employee net promoter score (eNPS), which can help you understand how employees feel about their work and the organization.

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Anuraag Guptaa

Board Member | Mentor-Investor | President & CEO | Listed Unicorn, Pre-IPO Soonicorns | Harvard Business School | MBA-NYU Stern, LSE, HEC | Author Igniting Minds with a Million Views | Incubating CEOs Gurukul
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Here are some of the key metrics: Employee Net Promoter Score (eNPS): This metric measures employee loyalty and satisfaction with the co. Employee satisfaction index: This metric environment, and co. culture Absenteeism rate: This metric measures the no. of days employees are absent from work Employee productivity rate: This metric measures the amount of work employees complete in a given period. Average length of service: This metric measures the average length of time employees stay with the co. Attrition rate: This metric measures the rate at which employees leave the co. Total HR cost per employee: This metric measures the total cost of HR per employee. HR initiative participation and completion rate.

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3 Talent acquisition and retention

A third metric to track is the performance of your talent acquisition and retention processes. Talent acquisition refers to the ability of the organization to attract, hire, and onboard the right talent for the right roles. Talent retention refers to the ability of the organization to retain, develop, and motivate the existing talent. You can measure talent acquisition and retention by using tools such as time to hire, cost per hire, quality of hire, turnover rate, retention rate, or talent pipeline, which can help you evaluate the efficiency and effectiveness of your talent management practices.

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Dirk Burkamp

Regional Director / Workday Practice Lead DACH at Strada
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The talent acquisition market is changing more and more to a candidate-driven market. Traditional KPIs such as time-to-hire need to be supplemented by candidate experience oriented KPIs such as apply-to-hire, candidate-experience-NPS, interviewer-experience. The talent acquisition function is turning more and more to a sales-operations where the job/company is the product and KPIs that traditionally sit in sales&marketing become more and more relevant for T&A (e.g. brand-awareness, web-impressions etc.).

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Mariusz Dabrowski
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Ensuring a harmonious alignment between talent and company culture is paramount for organizational success. It's not merely about recruiting skilled individuals; it's about identifying candidates whose values, attitudes, and work ethos resonate with the core principles of the company. Integrating this cultural fit into talent acquisition and retention processes becomes a crucial aspect of nurturing a cohesive and thriving workplace. Incorporating company culture into recruitment involves assessing a candidate's compatibility with the organization's values, mission, and working dynamics. Beyond technical competencies, evaluating soft skills and cultural alignment during the hiring process contributes to building a team that collaborates.

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4 Learning and development

A fourth metric to track is the impact of your learning and development programs on the organization and its people. Learning and development refers to the activities and initiatives that aim to enhance the skills, knowledge, and competencies of the employees and the organization. You can measure learning and development by using tools such as learning hours, learning satisfaction, learning transfer, or return on investment (ROI), which can help you assess the quality and value of your learning and development interventions.

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5 Diversity and inclusion

A fifth metric to track is the level of diversity and inclusion in the organization. Diversity refers to the representation and recognition of different groups and identities in the organization, such as gender, race, ethnicity, age, disability, sexual orientation, or religion. Inclusion refers to the sense of belonging and respect that employees feel in the organization, regardless of their differences. You can measure diversity and inclusion by using tools such as diversity scorecards, inclusion surveys, or diversity index, which can help you monitor the progress and outcomes of your diversity and inclusion initiatives.

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6 HR efficiency and effectiveness

A sixth metric to track is the efficiency and effectiveness of your HR operations and processes. Efficiency refers to the ability of the HR function to deliver its services and solutions in a timely, cost-effective, and reliable manner. Effectiveness refers to the ability of the HR function to meet the needs and expectations of its internal and external stakeholders, such as employees, managers, leaders, or customers. You can measure HR efficiency and effectiveness by using tools such as HR service level agreements (SLAs), HR customer satisfaction, or HR value added, which can help you evaluate the performance and contribution of your HR function.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What metrics should you track to measure HR strategy and transformation success?

1

2

3

4

5

6

7

1 Alignment with business goals

2 Employee engagement and satisfaction

3 Talent acquisition and retention

4 Learning and development

5 Diversity and inclusion

6 HR efficiency and effectiveness

7 Here’s what else to consider

Management Consulting

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What metrics should you track to measure HR strategy and transformation success?

1

2

3

4

5

6

7

1 Alignment with business goals

2 Employee engagement and satisfaction

3 Talent acquisition and retention

4 Learning and development

5 Diversity and inclusion

6 HR efficiency and effectiveness

7 Here’s what else to consider

Management Consulting

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