Performance metrics can look at many aspects of a business to measure an organization's activities and performance. These may include efficiency, profitability, customer satisfaction and productivity. HR metrics are a subset of performance metrics.
The key to successful performance measurement is to identify key business drivers and to find effective HR performance metrics related to these drivers. Too often businesses measure what is easily measured as opposed to what is most important. In addition, it is important to benchmark performance metrics to provide perspective regarding their value.
The process of developing performance metrics includes:
- Establishing key strategic and operational goals
- Identify objectives that drive the strategic and operational goals
- Set targets for your goals and objectives
- Develop effective performance metrics
- Monitor and modify performance metrics as needed
The process of creating and using performance metrics can come with a steep learning curve for the organization. The HR Metrics Center can help your organization build and benchmark HR metrics. Wikipedia offers more information on developing performance metrics for an organization.
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