Without a doubt, the HR function plays an increasingly strategic role in driving organizational success, particularly in small to medium-sized businesses (SMBs). HR is connected to everything that happens in an organization, whether that connection is evident or not (or even "wanted" or not). It's critical for HR leaders to understand and monitor key business metrics to inform their decisions and strategies. These metrics, ranging from revenue per employee to return on employee investment, not only measure the financial health of the company but also reflect the effectiveness of HR policies and practices. Understanding these metrics enables HR leaders to optimize resource allocation, improve workforce productivity, and ultimately contribute to the company's bottom line. These are ten key business metrics that every HR leader should know. In this post, we are focusing on metrics that have a direct connection with the financial bottom-line of the organization and the effectiveness of HR, accordingly.
great post with some excellent metrics. would definitely add Employee Retention and Employee Attrition onto these, due to the huge cost impact high attrition and low retention can have on a business.
Money isn't the only metrix...
Account Executive @ Culture15 | Culture Measurement
1 年Great post - love the emphasis on aligning HR with strategy (which is critical to performance). These are all fantastic metrics to track within the HR function - but I'd like to add something I think is missing here... Culture. If you can get the culture right, ultimately, all of these other metrics should fall into place! Culture is critical to aligning all of these metrics and although historically culture has been difficult to put a metric on, at Culture15, we've done just that. Anyone interested in learning about our approach to culture measurement, feel free to reach out ??