With increased responsibility as a business partner, HR is being called on to quantify performance in key HR functions to demonstrate organizational impact. HR leaders can accomplish this by tracking HR metrics that align with corporate strategy and inform business decisions.

HR leadership can take four steps to select the right HR metrics: 

  1. Assess business requirements for HR.
  2. Identify measurement areas.
  3. Translate raw data.
  4. Evaluate identified metrics.

When appropriate HR metrics are selected and used consistently by an organization, HR can distinguish opportunities to improve workforce performance and productivity as well as identify HR areas that require cost control and increased efficiency.