Resource Metric
A Brief History of HR Metrics and Analytics
Systematic work on the development of measures to capture the effectiveness of an organization’s employees can be traced as far back as the days of scientific management (Taylor, 1911) and industrial and organizational psychology (Munsterberg, 1913). Methods of quantitative analysis and its use in decision making were developed during the build-up of both men and materiel leading up to and during World War II. Further study and development occurred during the great post-war industrial expansion in the United States that continued into the 1970s. Many of the HR metrics used today were first considered and developed during this period (e.g., Hawk, 1967).
Widespread assessment of HR metrics did not occur until the pioneering work of Dr. Jac Fitz-enz and the early benchmarking work he conducted through the Saratoga Institute. In 1984, Fitz-enz published How to Measure Human Resources Management, currently in its third edition (Fitz-enz & Davidson, 2002), which is still a highly valued overview of many HR metrics and the formulas used to calculate them. A set of 30 metrics were developed through the joint efforts of the Saratoga Institute and the American Society for Personnel Administration, the forerunner of the current Society for Human Resource Management (SHRM). These metrics are listed in Table 14.1. Initially, HR metrics were primarily used to measure or audit aspects of HR programs and activities as described by Cascio (1987) and Fitz-enz and Davidson (2002). Next, metrics began to be used to measure HR effectiveness. SHRM has identified a number of metrics that organizations can use in this way. These metrics comprise the HR Metrics Toolbox seen in Table 14.2 (SHRM, 2010). For example, cost per hire can be calculated as cost per hire equals the sum of external costs (recruiting) and internal costs (training new employees) divided by the total number of starts in a time period (SHRM, 2010). There are also more detailed approaches for the measuring and benchmarking of employees’ behaviors such as turnover (Cascio, 2000), as well as for creating HR metrics for programs such as employee assistance and work-life programs (Cascio, 2000). Page 390
Kavanagh, M. J. (2018) Human Resource Information Systems. [devry]. Retrieved from https://devry.vitalsource.com/#/books/9781506351476/
8 Apr 2020 07:06
In this exercise, you will do web based and library research on Human Resource metrics and measurements and write a 3-5 page paper.
You are to research relevant metrics for a mid-sized company. What HR metrics should the HR department of a mid-sized company be aggregating data for and then analyzing and reporting to management on a regular basis. Examples of metrics are Compa-ratio, Market Index, Turnover Rates (Voluntary and Involuntary), Time to Hire, Revenue per employee, Total Compensation to Revenue, Revenue per employee etc.
ASSIGNMENT DESCRIPTION/SCENARIO
For your paper you will research, study and then write a report on the appropriate type of Human Resource Metrics that a typical mid-sized company with a 1000 to 3000 employee base should be sourcing the data for, then analyzing the data and finally, regularly reporting to Senior Management. You are required research and study up on the various types and categories of metrics a mid-sized company should regularly collect and report on.
Your research sources should be books (like the one authored by Dr. Jac Fitz-enz) and other sources like PricewaterhouseCoopers Human capital Analytics services (You will find a lot of material on this service, and their portfolio of comparative metrics for which they collect and compile and publish from various companies – www.pwc.com (Links to an external site.)). In the webliography, you will find a lot relevant material on Human Resource Metrics. When you Google the term HR Metrics you will also find a lot of material. Chapter 7 of your textbook is also a great source.
Discuss the various public or private sources of comparative Human Resource Metrics data. Report what you have found from library and web research on sources of comparative Human Resource Metrics. Which sources would you recommend for a mid-sized company?
To be considered complete, all written assignments must include proper citations within the body of the paper when relevant, as well as a Reference section. Failure to cite outside sources is plagiarism and will be treated as such! You must also include a title page. Do not include pictures or graphics. All documents must be in Word format and be uploaded by the assignment deadline. Quoted material in this assignment should be
