Today, HR metrics is the holy grail of an organization in order to have a significant impact on its long-term performance.

Accomplishing organizational excellence in the current competitive business scenario is a continuous process which demands high performance throughout the organization. This decade has seen a radical transformation in the face of Human Resource Management (HRM) and it can no longer be treated as a paltry support function but as a strong strategic partner of the organization, through HR Metrics interventions. This approach advocates the use of procedures, framework and methodologies that help in assessing and interpreting HR processes and outcomes in a quantitative manner that influence strategic decision-making. In order to present a comprehensive picture of the human resources of the organization, it is necessary that the chosen metrics set should ideally contain all the three types of metrics—functional, operational and strategic measures. The ideal proportions of the metrics set depends upon the nature of the industry and the strategic business objectives.

Human resources are the most vital assets of every organization. The efficiency level of a firm principally depends on its HRM that contributes to the fundamental success of a business, while its effective measurement is critical to deliver effective HRM. A sound HR metrics program enables HR management to make effective business decisions based on the collected consistent information about the employee population, which eases decision-making and ascertains that management and development actions remain relevant with the overall corporate strategy that leads to increased shareholder value.

MBA Review Magazine, HR Metrics, Benchmarking, Human Resource Management, HRM, Decision-Making Process, Business Strategy, Business Goals, Organizational Culture, Corporate Strategy, Cost-benefit Analysis, Schusters HR Index.