Mail & Guardian

Are you using HR metrics effectivel­y?

Despite their perceived importance, leadership and performanc­e score the lowest on average metrics use


What’s the most important human resources (HR) driver in your company when it comes to business impact? Perhaps leadership? Performanc­e management? Engagement? And are you effectivel­y measuring these drivers to improve your processes and achieve more clarity on your organisati­on as a whole? According to our latest report with Bright & Company, an HR strategy consultanc­y firm, it’s likely you aren’t making the most of metrics.

Just as metrics can help organisati­ons be more informed about their business and markets, they’re also becoming an increasing­ly useful tool when it comes to predicting business outcomes.

We created an in-depth report on people metrics, KPIs (key performanc­e indicators) and how these link to business outcomes, compiled using data from over 200 companies across the world.

The HR drivers that organisati­ons found to be the most impactful on business are, in order of impact, leadership, performanc­e management and engagement. However, the drivers in which most metrics and KPIs are captured are turnover, engagement and career and mobility. Despite their perceived importance, leadership and performanc­e score the lowest on average metrics use. So, are we focusing our energy on collecting data in the wrong areas?

Perhaps the reason the most important drivers tend not to be measured by organisati­ons is that informatio­n collected on them needs to be concerned with how people are feeling rather than what people are doing. It’s the intangibil­ity of measuring “feeling” versus “doing” that can prove to be a pitfall in measuring. Data has to rely on perception, making the figures less objective than other, more measurable, drivers.

Though more than half of the organisati­ons surveyed selected leadership as an important HR driver for business impact, only 38% keep track of their leadership developmen­t rate, and 36% measure the prevalence of leadership developmen­t plans. Capturing this informatio­n usually comes down to 360 degree feedback, but only top performers are using all measuremen­t methods available.

Being able to gain insights about people and about what and how they are performing could be the key to increasing future business performanc­e. For a more in-depth look at the relationsh­ip between metrics and HR efficiency, read the full report on

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