Why It’s Important To Use Data To Track HR Initiatives
How are you tracking the effectiveness of your company’s HR programs?
One of the biggest struggles we hear from HR leaders is the limited access they have to quantitative metrics that they can use to evaluate their HR initiatives. In most cases, HR leaders have trouble defining how to measure the success of these programs with quantitative metrics.
Let’s take leadership and management training for example. Many leadership programs focus on developing new skills for employees, but with no way to measure the effectiveness. Without metrics, HR departments have to rely on gut feeling and anecdotal evidence to determine whether it’s worth their time and effort. Right now, most HR leaders measure the effectiveness of these programs on whether their colleagues liked the workshop or training that happened. Instead, they should focus on finding ways to quantify these programs with numbers that impact the organization as a whole.
Below are some questions to think about when trying to measure the effectiveness of these types of programs:
1. What impact does teaching an employee specific skills have on the team or the individual’s KPIs?
2. What are your savings from recruiting costs when you promote someone from within because of the new skills?
3. What is the difference in retention rate of managers who have developed these new skills?
One metric we track is employee retention and how it ties back to the implementation of new initiatives. If you run the numbers before you implement these programs and compare them to after, you can see whether this type of program is working or not. You can also dig deeper into the metrics and see if the program is working for specific teams vs. others. Not all leadership programs work for all experience levels and departments.
Think about how you can use metrics to quantify the value of your HR programs. The more you can quantify these benefits, the more likely you will be able to make better decisions in the future around your initiatives.