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Write a paper hypothesizing how identifying, implementing, measuring, and reporting on organizational metrics will be important over the next decade. Your theories must assess future trends in measurement?



The organizational metrics are the measurement of the effectiveness of organizational strategies. It includes tools like turnover costs, cost per hire, training costs and other costs incurred in implementation of strategies, cost on human capital and investment returns along with productivity cost, labor rates and individual cost of employee benefits.The project focuses on the implementation, identification, and measurement of organizational metrics. It states that how the organizational metrics is going to help organizations for the next decades. Basically strategies are implemented in order to introduce changes and reach the goal of the organization, but there should be necessary process of evaluating whether the steps or strategies initiated is going to help for the organizational objective or not. Organizational helps to evaluate the strategies.  The project emphasizes on the requirement of measurement, the need for change and what are needed for changing, along with major HR functions what measurements are required to evolve with the major functions of Human Resource, and an evaluation of how the managers should use the trends for increasing the organizational performance as a whole.

What requires to be measured in Metrics?

In organizational metrics there are certain factors that need to be measured. They are as follows-

Critical retentions of talent:

Generally every organization has a turnover problem, but they do not claim them. Instead of evaluating the turnover rates the organization must emphasize on the critical retention of their top talents. Today the economy is more about practical and knowledge based economy (Ahearne, Lam & Kraus, 2013). The new talent if the organization represents the competitive advantage. It is considered that an organization having a good number of fresh talents can have the ability to reach its goal by providing maximum number of input in their production.

Effectiveness of recruitment:

The reverse of retention of employees is that the strategies of retention in organization are mainly about attracting new employee holding similar caliber (Ahearne, Lam & Kraus, 2013). So long the metrics of various organizations have followed metrics of retaining their critically skilled employees. In order to understand adequately that the goal has been met, the leaders should take a note of how quickly the position has been filled that the organization have required. They should comprehend the impact of business shortfalls in capacity (Cascio & Boudreau, 2010).



In order to measure the productivity, the impact of human capital on financial basis requires to have three main metrics, they are the human capital return investment, full-time equivalent revenue, and per FTE profit (Cascio & Boudreau, 2010). The employers should also consider the productivity measurement on both quarterly and annually basis. Even in order to understand the market position of the company, the company needs to analyze its position in national basis so as to understand their contribution.

Pay equity and compensation:

Compensation is a major contribution of the highest share of the workforce total cost. It is vital that the leaders should consider for making incentive programs which are competitive in nature and aligned with the objective of the business (Cumming & Cornélis, 2012). The compensation and the budget strategy are generally defined in a centralized manner. But the distribution and decisions related to it is distributed in the whole of the organization.

Management of Performance:

One of the most significant measures of workforce is performance of the employees. The real value of performance comes when it is being compared with the other crucial measures and the links are well comprehended (Dess, 2012). In order to have a look to those organizations the main focus should be on the following, they are- the top talent, the high and low turnover of performer, distribution of performance rating and the participation rate of performance appraisal (Ferrell & Hartline, 2010).


Importance of HR metrics:

HR metrics helps the HR to communicate with the senior management like CFO’s, CEO’s, and other executives that helps in various decision making and suggestion (Fitz-Enz, 2010).

  • The measurement helps in improving performance.
  • Helps in recognizing the weakness and strength of the organization
  • Helps in forecasting future threats and scope for the organization.
  • It also helps to find the weakness and strength in every department.
  • It also helps in prioritizing the goals.

What HR metric should avoid:

There are basically two common errors that HR manager should avoid while implementing HR metrics, they are-

  • Implementation and development of HR metrics in vacuum.

Without proper planning the metric should not be formed. An HR needs to find out that there are certain measures which is necessary to be taken without any proper requirement making HR metric is irrelevant (Gates & Langevin, 2010).

  • Developing a large number of metrics which are hard to utilize and maintain.

The number of measures should be that much which can be taken care of. If there are too many metrics then the work remains unfinished and the outcomes become abstract. Even the project also gets delayed of measurement (Hunter', Boroughs & Palmer, 2012).


Measurements that may evolve within major HR functions:

The measurements that can change the major functions of HR are as follows-

  • The measurement of innovative capacity in the organization
  • Skills of employees for maximizing the added value of product/service.
  • The level of productivity
  • The agility of organization and workforce.
  • The excellence in customer service
  • The service and product quality
  • Satisfaction of stakeholders
  • The cost of leadership

The measurement is done in the following way (J. Phillips & P. Phillips, 2014),

HR drives

Initiative processes

Evaluation of the impact of implementation

required Information

Source of information

innovative capacity

Programs and session of training

The effectiveness of training

Employees and trainers

Skills of employees

Measurement survey

Qualification and activity participation.

CV, past records, HRIS.


Motivational activities

How many motivational sessions were held


agility of organization and workforce

Reporting records of individuals.

The tasks performed within duration.

Recorded data of employees and HRIS

customer service

Providing communication skills training and career development.

How many customers are satisfied with the service

The manager and the customer’s feedback.

service and product quality


Numbers of product sold and introduced in the market

R&D department

Satisfaction of stakeholders


Equity and share interests and dividends.

The present share value and the dividend amount.

Annual report of the company and market survey.

cost of leadership

Consulting experts and time spent

The evaluation of the effectiveness

Performance evaluation report.



HR functions include recruitment, employee engagement, learning and development of employees, their salary and reward system, benefits and securities, social responsibility and sorting out legal issues related to employee which includes dispute as well (Kavanagh, Thite & Johnson, 2011). Today, with the help of HR metrics

Utilization of the trends in HR metrics:

The managers in the organization should use these trends so as to increase the performance of the organization. These trends are the tools of HR metrics; the tools of HR metrics are presented in the diagram below (Kearns, 2013).

four Pragmatic Future Insight Tools

Figure: 1.1 four pragmatic future insight tools.

The effectiveness of thee tool:

Impact of identifying the measurement effectiveness tool:

The identification helps to find areas where the HR management can make strategic impact and the fields where the HR needs to concentrate (Kuvaas, Dysvik & Buch, 2014). The key performance indicator also helps to identify the fields which need to be focused.

One of the organizational priority areas are clear the strategic HR drivers can be explicitly considered which helps in contributing towards the organizational achievement (Schiemann, 2010). As the strategy is identified the organizations strategic drive are placed to be considered as the best implementation of the strategy.

Analyzing the HR metrics:

There is wide range of effectiveness level in the areas that may have possible impact in the HR metrics. Assessing least strategies makes the HR program least active. The efficiency of the metrics is related to the degree to which the process of HR are undertaken in a way that lessens the utilization of resources (Snell, Morris & Bohlander, 2015). There is benchmarking system for Hr in many organizations. These evaluations of Hr processes are done by comparing with excellence or good practice of external standard. The result of the HR metrics generally shows a huge number of activities for achieving priorities of strategy which are closely aligned in both horizontally and vertically way with the works of the organizations other parts.

The new development evaluation in interpretation, analyzing, for future success of the organization helps in implementing strategies that helps not only solving issues related to the present condition of the organization, but also for the future threats that the organization may confront (Snell, Morris & Bohlander, 2015). In utilization of HR metrics one of the major problems that has been identified today is that the nature of employees and the issues are related to, what should be the aim of the organization, what should be prioritized, what necessary steps are going to be ineffective and what process would make a positive impact on reaching the goals?



The HR metrics is often fraught and tactical with too many measures having incompatibility in them. Rather the HR measures should be a link of few critical measures that connect closely to the organization strategy instead of benchmark of HR. HR manager should try to keep the number of goals feeble and strategies limited which can be achieved and implemented strategy. This function of an HR states the quality of leadership in an HR manager.



  • Ahearne, M., Lam, S., & Kraus, F. (2013). Performance impact of middle managers' adaptive strategy implementation: The role of social capital.  Mgmt. J., 35(1), 68-87. doi:10.1002/smj.2086
  • Brewster, C., & Mayrhofer, W. (2012). Handbook of research on comparative human resource management. Cheltenham: Edward Elgar.
  • Cascio, W., & Boudreau, J. (2010). Investing in people. Upper Saddle River, N.J.: FT Press.
  • Chen, P., Wright, S., Nelson, D., & Jackson, S. (2012). Leadership and change management. South Melbourne, Vic.: Cengage Learning Australia.
  • Cumming, G., & Cornélis, D. (2012). Quantitative comparison and selection of home range metrics for telemetry data. Diversity And Distributions, 18(11), 1057-1065. doi:10.1111/j.1472-4642.2012.00908.x
  • Dess, G. (2012). Strategic management. New York: McGraw-Hill/Irwin.
  • Ferrell, b., & Hartline, M. (2010). Marketing Strategy,(5th ed., p. 768). South-Western.
  • Fitz-Enz, J. (2010). The New HR Analytics. New York: AMACOM.
  • Gates, S., & Langevin, P. (2010). Human capital measures, strategy, and performance: HR managers' perceptions. Acc Auditing Accountability J, 23(1), 111-132. doi:10.1108/09513571011010628
  • Hunter', ,., Boroughs, M., & Palmer, M. (2012). HR Transformation Technology: Delivering Systems to Support the New HR Model(p. 230). Gower Publishing.
  • Phillips, J., & P. Phillips, P. (2014). Developing a human capital strategy in today's changing environment: eight forces shaping HC strategy. Strategic HR Review, 13(3), 130-134. doi:10.1108/shr-01-2014-0002
  • Kavanagh, M., Thite, M., & Johnson, R. (2011). Human resource information systems.
  • Kearns, P. (2013). Professional HR. London: Routledge.
  • Kuvaas, B., Dysvik, A., & Buch, R. (2014). Antecedents and Employee Outcomes of Line Managers' Perceptions of Enabling HR Practices. Journal Of Management Studies, 51(6), 845-868. doi:10.1111/joms.12085
  • Schiemann, W. (2010) (1st ed., p. 14). Metrus Group, Inc. Retrieved from
  • Snell, S., Morris, S., & Bohlander, G. (2015). Managing Human Resources(p. 736). Cengage Learning.
  • com,. (2015). Retrieved 9 April 2015, from
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