6 Steps to Prove Your Worth: The Power of HR Metrics

HR is often looked upon as a cost center rather than as a valuable resource to the organization.  You need to help change that image –not only to prove your own worth but to help advance our profession as well. The ability to sell yourself is instrumental to your success.  HR may be doing a dynamite job, but if no one notices, they won’t realize your potential. 

Step One: Determine what to measure.

You need to develop baselines for the "products" and services your HR department provides. The more you can document where you are now in terms of timeliness, quality, quantity and impact, the easier it is to identify opportunities for improvement. Work with your executive team to identity key measures. The 5 generic measures are: Quantity - Time – Cost- Quality - Human Reaction

Look for ways to measure these 5 in each of the core HR disciplines. For example:
•In recruiting - measure cost per hire, length of time to hire and the quality of those hired.
•In employee relations - measure turnover, employee attitudes; absenteeism/tardiness, number of grievances and/or lawsuits filed.
•In training - determine the training investment factor, productivity increases, reaction and cost to train.
•In compensation - look at salary compression and/or internal equity.
•In safety - calculate your worker's comp costs, lost days cost and return to work numbers.
•In benefits - measure the number of employees participating, complaints and the costs of each benefit.

Two quick examples:

At a minimum determine how much that turnover is costing your organization. Knowing this number can help you cost justify improvements in benefits or working conditions. We worked with one 106 person company that had a 60% turnover rate resulting in over $360K walking out the door every year!

Since "time is money," track how long it takes to get processes completed. For example, how long does it take to hire, how long to process changes, etc? Then flow chart out the processes and make measurable improvements. You can then PROVE your worth. In one company, we were able to cut their time to hire from 3 ½ months to 3 weeks saving them millions in temporary worker costs.

Step Two: Establish a baseline.

Step Three: Identify improvement opportunities.

Once you measure, you will start to identify improvement opportunities. Identify the key issues the executive team has with improving HR. Also identify where the process costs too much or takes too long or the quality isn't what you want.

Step Four: Make improvements.

Involve your "internal customers" in problems solving the systems and to generate improvement ideas. Put "advisory groups" together for increased input and buy in. Brainstorm ways to make the task more efficient, easier, and less costly.

Step Five Compare results after the improvements with your baseline.

Document improvements you have made in productivity, quality, improved timeliness and customer service. This is a great way to prove your worth to the company and get that promotion. You will be able to quantify the return on investment your company makes when changes positively impact turnover and their bottom line.

Step Six: Communicate your results.

But if you don't tell anyone, it didn't happen. Much like the "tree falling alone in the forest," if no one hears it, it's easy to ignore. So toot your own horn. Write a monthly update report even if it is not required. These are great for letting your immediate manager know what you've accomplished. Be sure to talk in ways that make management listen such as return on investment, savings, specific improvements, errors reduced, etc.

Using these 6 steps, the value your contributions to the organization will be known and you will have "PROVEN YOUR WORTH! SHRM has help online! Go to www.SHRM.org then look under HR Tools and then HR Metrics

For information on how we can help improve performance, contact us at:

Creative Business Solutions

1240 SW Oakley, Topeka, KS 66604

www.CBSKS.com or 800-635-2310 or 785-233-7860