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HR metrics and workforce analytics: it is a journey, not a destination

Article  in  Human Resource Management International Digest · December 2018

DOI: 10.1108/HRMID-08-2018-0167

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 Human Resource Management International Digest
HR metrics and workforce analytics: it is a journey, not a destination
Subhashini Durai D., Krishnaveni Rudhramoorthy, Shulagna Sarkar,
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Subhashini Durai D., Krishnaveni Rudhramoorthy, Shulagna Sarkar, (2018) "HR metrics and workforce analytics:
it is a journey, not a destination", Human Resource Management International Digest, https://doi.org/10.1108/
HRMID-08-2018-0167
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 Viewpoint

HR metrics and workforce analytics: it is a

journey, not a destination
Subhashini Durai D., Krishnaveni Rudhramoorthy and Shulagna Sarkar

etrics are numerical data that reflect some descriptive details about the given

M outcomes or processes, whereas analytics is a set of strategies for converting and

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combining the data elements into metrics and for examining the relationships or
changes in metrics. Understanding these combinations helps the managers to know about
the current or changing state of human capital and their performance effectiveness in an
organization. This knowledge can impact their managerial decision-making ability. In
general, to perform analytics in an organization requirement, the policy makers has to
depend on the troubles and opportunities that currently faced by its managers. This path
leads to the calculation of metrics that the organization needs in order to compute the
analytics.
Human resource measures which are universally used in organizations are the inventive
Subhashini Durai D. is PhD
work of Dr Jac Fitz-enz and the early benchmarking effort he has done all the way through Research Scholar and
the Saratoga Institute. Initially it was very difficult to identify a right methodology to calculate Krishnaveni
metrics and alignment with organizational objectives. But today, due to the development of Rudhramoorthy is
computers with robust communications infrastructure and better access to data through the Professor, both at the
adoption of integrated human resource information, organizations are becoming involved in Department of
reporting more consistently and systematically. And also management decisions are Management Studies, PSG
Institute of Management,
evidence based where cost and benefit analysis is equally focused.
Coimbatore, India.
Shulagna Sarkar is
Why HR metrics and workforce analytics? Assistant Professor at the
Department of
To take an effective decision, managers need to have quantified data with numerical results
Management, Institute of
which can be obtained with the help of process-specific metrics and analytics. And now Public Enterprise,
managers needs to know what information they need and what human indicators that can Hyderabad, India.
be reported using metrics. This is the fundamental problem to a manager to start with
calculation of metrics and analytics.
The main objective of the measuring metrics and analytics are to:
䊏 create interest in measurement and analysis as a simple to calculate and report more
metrics;
䊏 evaluate and report human resource indicators that it translates into better
organizational performance;
䊏 generate and report HR metrics that help to measure individual, unit, or organizational
performance;
䊏 translate information into meaningful reports that helps the managers to make different
and better choices than they would do with mere information;

DOI 10.1108/HRMID-08-2018-0167 © Emerald Publishing Limited, ISSN 0967-0734 j HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST j
 䊏 change the manager’s decision-making behavior by reporting human resources
indicators using a return on investment-based approach; and
䊏 Focus on improving management decisions by calculating appropriate metrics and
comparing it with various standards and periodical results.

Will it support problem-solving and decision-making processes?

Metrics and analytics is a better problem-solving measure in organizations, because in any
situations decisions are made after analyzing the tactical choices. In response to specific
problems, the choices may be among alternative choice to achieve specific outcomes. The
choices could also involve trying something new, or to take no action at all. Making effective
decisions requires a better understanding of the outcomes that one is attempting to
achieve. Also one requires knowledge on how the factors influence those outcomes and
about the available choices based on the cost–benefit approach.
The goal is to use the expertise of HR professionals in human resource management
regarding their understanding of the best way to recruit, select, train, design, motivate,
develop, evaluate, and retain employees at organization to help achieve its goals more
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effectively. The operational indicators of the business units like on-time delivery, units sold,
etc. can help organizations improve their operational efficiency. HR managers must first
identify what processes are most likely to achieve organizational goals and find ways to
maximize the efficiency and effectiveness of implementing these processes in the
organization.

What is the first step to generate metrics and analytics?

The first and foremost step to generate metrics and analytics strategies in an
organization is identification of existing problems faced by them. Due to the changing
environment and global requirement, the labor measurement also changes. The main
focus is on the problems faced by the organization and human resources in the working
environment. These problems should be solved by the management of the organization
as early as possible. Because the world is moving with a competitive attitude and also if
there are any delay in making appropriate decisions, these may lead the organization to
a difficult situation. To bounce back from those difficulties might take time and the
organization would feel it difficult to keep pace with the changing global requirements in
the business world. Thus the only solution to face these difficulties is to identify new
performance measurements. In this way, metrics and analytics plays a smart role in
measuring the performance of the organization and aiding decisions-making at
appropriate times. The organization should organize to strengthen R&D where the HR
professionals will experiment with new measurements and test existing assumptions
about the requirements of the current systems of the organization. This test can
encourage new approaches and allow the creation of new metrics and analytics.

Summary
The development of effective human resource metrics and workforce analytics is likely to
be seen in the future as a very important source of competitive advantage. Through the
use of human resources measures and workforce analytics, decision-makers will gain the
ability to more effectively manage and improve human resources programs and
processes. This in turn improves the effectiveness of the workforce. Using metrics and
analytics in all functions of human resources department, management decision-makers
can modify comprehensive employment systems by effectively managing the company’s
human capital.

j HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST j

 HR managers must be able to express their capacity to use metrics and analytics to handle
their own operations, and others are more likely to listen to their recommendations (George,
2016). HR professionals also need to work closely with their business associates in
operational departments to help them get better their capability to achieve the preferred Keywords:
results. Producing metrics and analytics from any information system will improve decision- HR metrics,
making by influencing the decision-makers to decide to make different and better Decision-making,
decisions. Finally, the use of human resource metrics and workforce analytics improves HR analytics,
organizational effectiveness and strategic decision-making of managers that positively HR managers,
impact the organization’s performance as a whole. Metrics and analytics

Reference
George, L. (2016), “A study on the acceptance of HR analytics in organisations”, International Journal of
Innovative Research and Development, Vol. 5 No. 2.

About the authors

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Subhashini Durai D. is a Research Scholar (Management Studies) at Anna University, Tamil

Nadu, India. Her areas of interest are HR metrics, Predictive analytics, Performance
measurement and Performance management. Subhashini Durai D. is the corresponding
author and can be contacted at: subhashiniid@yahoo.in
Krishnaveni Rudhramoorthy is a Professor at PSG Institute of Management, Coimbatore,
India. She is a recipient of “Outstanding Woman Researcher Award (2010)” and “Best
Management Educator Award (2009)”. She is presently the head of the HR stream and
Professor of HR and OB. Her current interest are in employee engagement, Analytics and
performance management.
Shulagna Sarkar is an Assistant Professor and Coordinator PGDM – HRM course at Institute
of Public Enterprise with both industry and academic experience. Also the Coordinator for
Centre for CSR and looking after the activities of Case Research Centre at IPE. Actively
involved in research and consultancy in the area of Human Resource Management (HRM)
for both public and private sector organizations in India. Areas of specialization
include Competency Management, Training and Development, and Corporate Social
Responsibility.

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