A Study on Effectiveness of HR Metrics

HR Metrics have become a hot topic in organizations of all sizes. Interest is rising, and organizations are reaching out to learn more about metrics and how it can be used to improve organizational effectiveness. Although the use of it is not new, various factors have driven increased interest during the previous decade. It is used to gauge the effectiveness of various HR responsibilities and initiatives such as hiring, employee retention, training and labor costs. HR departments can use these metrics to improve their efficiency and demonstrate the value of their activities to upper management. The field of HR Metrics is currently in transition. During the past 30 years, most of the medium to large organizations did engage in HR assessment. But these efforts were not systematic. Due in part to the expense involved, they were conducted on only a sample of activities, and often for only a limited set of metrics. More recently, because of the development of strong computer-based communications infrastructures and greater access to data through the adoption of integrated human resource information systems, organizations are engaging in more consistent and systematic reporting of HR Metrics. HR Metrics are often overlooked or underrated in many organizations. This is a mistake, because HR Metrics are very important in assessing the efficiency of the HR policies, programs and endeavors. The idea of HR Metrics is that taken up for assessment or implementation has to be measurable. The main purpose of this paper is to study and analyze the available literature based on the HR Metrics, to understand how it has been studied and evaluated by different authors who are working in this area. Current literature focuses on the effectiveness of HR Metrics- Its importance and Concept. Data has been collected from multiple sources of evidence in addition to books, journals, websites and news papers. It explores the main issues in adoption of HR Metrics techniques and practices.