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What are Metrics?

A Metric is a quantifiable measure that is used to track and
assess the status of a specific business process.


Standards of measurement by which efficiency, performance, progress, or
quality of a plan, process, or product can be assessed.

• Metrics are numbers that tell you important information about a process under question.
• They tell you accurate measurements about how the process is functioning.
• They provide base for you to suggest improvements.
• Using a combination of metrics is a good strategy to measure the effectiveness of the process.
• Metrics are used to drive improvements and help businesses focus their people and resources on
what’s important.

Ultimately, metrics will help tell the organization:
Where it has been
Where it is heading
Whether something is going wrong
When the organization reaches its target

Minhaj Azeem Abbasi
Accompanied by

Sir Vijay Kumar

IBT-Gulshan Campus

Defining a metric is similar to telling a joke – if you have to spend too much time explaining it then it will not work.!!!

What are Metrics?

What are Metrics?

Key Aspects

Types of Metrics

Data is consistent, cheap, and quick to collect.
You can measure results within a week.
You can replicate the process.
Drive the strategy and direction of the organization.
Provide focus for an organization, department or employee.
Help make decisions.
Make the process objective and drive performance.
Change and evolve with the organization.
Produce good internal and external public relations.

Marketing Metrics
Sales Metrics
Financial Metrics
Social Media Metrics
Performance Metrics
Metrics vs KPIs

• Business metrics are used to track all areas of business.
• KPIs target critical areas of performance.
Metrics can be a powerful tool for informing and guiding decision making at
all levels of an organization. They can, however, be detrimental if not
designed and implemented properly. In order for metrics to deliver value
rather than distraction, they must be clearly defined, completely
understood and broadly communicated, as well as focused on the areas that
are most important to the success of an organization.

You can’t pick your data, but you must pick your metrics.

HRM Metrics
The human resources function in business generates costs but rarely generates any
revenue. This creates constant pressure on them to show their value and contribution in
organization success.

There is a difference between numbers and numbers that matter. This is what separates data from metrics.

HRM Metrics - Functions and Impact
HR metrics involve compiling and analyzing specific data and information culled from various
sources to gain a better understanding of how HR is contributing to the business side of a company.
HR metrics are powerful tools to show us areas where we could improve and better
meet the needs of our organization and its employees.
These measurements demonstrate how effective the efforts of the human
resources department are to the overall success of the organization.
Not only can the effectiveness of HR be demonstrated in quantitative terms, it must be in order to
explain its importance. Compiling and communicating metrics is a requirement for HR strategists.

For Organization

For Employees

Get a pulse on the health and stability of your workforce.

Develop clarity on what counts most in their organization.

Informed HR decisions to recruit and retain the best staff.

Use the information garnered to assess the impact of
activity and inform their decision-making.

Understand if HR initiatives are working.
Set a foundation for long-term growth.
Intelligent Investments in HR.
If you can't measure it, you can't improve it. - Peter Drucker

See organizational priorities within a wider picture to
direct and manage themselves with more awareness.

“If you're not keeping score, then you're just practicing.”


Diversity and Gender Equality. Vacancy Rate External Hire Rate People hired externally as a percentage of headcount. Formula Count of Vacant Positions/HC New Hire Total/HC Retention Metric Name Description Formula Turnover Employees who left the organization. Cost. Labor Costs/Revenue *Head Count HRM Metrics Recruitment Metric Name Description The percentage of positions being actively recruited for at the end of the reporting period.(Operating Cost Labor Cost))/Labor Cost} . Age group calculation. (Based on pre-tax Investment profit) HR Efficiency HR Turnover. as a percentage of HC. either voluntarily or involuntarily. (Based on pre-tax profit) (Revenue-Operating Cost)/Total HC Retention Turnover.e. Labor Cost/HC Labor Cost The total labor costs as a percentage of organizational Revenue Percent revenue.” {(Revenue . Salaries. Resignation and Retirement Rate. Gender and Diversity. (Resignation + Retirements + Involuntary Terminations)/HC Turnover Cost Cost of Employees who left the organization. Revenue and Capital Employed. Revenue/HC Recruitment Vacancy. wages and benefits. Sick Days/HC Labor Relations Grievances and Union association Percentage. (Cost per hire+termination cost+vacancy cost)/total number of terminations *Head Count 2 . Cost etc. Compensation Metric Name Description Formula Revenue per HC* The number of dollars of revenue from operations generated per HC. Learning and Development Investment. External. “Without context. Turnover with in a Year. Profit per HC The number of dollars of profit generated per HC. either voluntarily or involuntarily.1 Description Formula Labor Cost per HC The average labor cost to the organization for each HC. Compensation Metric Name Workforce Demographics Promotion. in relation to Total Payroll and Revenue.Categories HRM Metrics Productivity Performance based on Profit. Human Capital The rate of return for each dollar invested in Return on employee pay and benefits. Head counts. as a percentage of HC. Churn over. Career Path. metrics are just numbers.10/16/2016 HRM Metrics . Absenteeism Rate The number of work days missed due to illness per HC. Productivity Labor cost Analysis i.