Input Measures: The investment in people for productive use. Typical input measure: Training Remuneration
(to measure what is the return from that investment)
HR BUSINESS PARTNER METRICS
Output Measures: This can be considered in two ways
Actual services & goods produced
(Eg. No. of customers served per employee)
Key financial performance areas
(Eg. Profit per employee / Revenue per employee)
HR BUSINESS PARTNER METRICS
Outcome Measures: These consider how people respond. This describes a response of human resources to a set of conditions. Examples: Resignation rate Employee Engagement
HR BUSINESS PARTNER METRICS
Checklist of Measures: Average Revenue per employee Average cost per employee Average Profit per employee Return on Human Investment ratio Formula: (revenue - (costs - total remuneration)) The ratio indicates for every $ invested in paying people, the return in profit generated
Remuneration / Revenue Cont.
HR BUSINESS PARTNER METRICS
Checklist of Measures: (Continued) Remuneration / Cost Average Remuneration per employee Absence rate (Outcome Measure) Resignation rate (Outcome Measure) Training spend / Compensation
HR BUSINESS PARTNER METRICS
DATA AVAILABILITY
Available Data: Absence, Resignations, Engagement
Data to be available: Cost, Remuneration, Revenue, Profit & Training
HR BUSINESS PARTNER METRICS
NEXT STEP Define: Cost, Remuneration, Revenue & Profit. Identify: Sources of information/data. Suggest that we endeavour to capture as much as data possible to provide quality HR Business metrics
HR BUSINESS PARTNER METRICS
Conclusion: The suggested metrics should help HR Metrics not to be looked in isolation but from a business perspective. These metrics should provide insights as to how these factors impact and influence the business.