Home >> Metrics >> Developing Insights from Metrics

Some organizations are beginning to develop effective metrics systems. Nevertheless, many still have not realized a return on metrics investment because they have not learned how to gain insight from metrics data and apply that data to effect action at the line level. Consequently, organizations are examining ways to better focus their metrics resources to generate positive results that filter down into all organizational levels. They are beginning to realize the business sense in taking a closer look at the "people-related" issues that affect the overall health of the organization and the need to maximize return on human resource investment.

The Corporate Leadership Council conducted more than 60 interviews with HR executives from around the world to examine key obstacles to maximizing the business impact of HR metrics. The data from these interviews revealed three specific challenges that stand in the way of high returns on HR metrics. These challenges are listed below:

• Identifying high-value metrics
• Facilitating metrics implementation
• Analyzing metrics - developing insight

Executives indicated that HR measurement is a top priority in good strategic planning and is likely to remain a high priority issue. These organizational leaders indicated that they expect their organizations to increase investments in HR metrics and learn how to effectively apply metrics data in organizational decision-making. To become adept at this, leaders must understand how to identify the present and future implications - what the data is really telling us.

In this section, we will discuss ways to gain understanding from the data and to use this understanding to make decisions that will improve the organization's future. We will examine both organizational and HR metrics and explain the relationship between them.