How can HR metrics help companies grow? (Toughest HR question)

Can link to strategy or demonstrate HR's prowess
By Ian Cook
|Canadian HR Reporter|Last Updated: 05/06/2011

Question: How can HR metrics help companies grow? Our HR department is keen on getting into metrics but we don’t have a clear understanding of what exactly to do with the data once we have it. Any assistance would be appreciated.

Answer: There is an increasing focus on data in business and the ever more sophisticated use of software has led to a whole new discipline — known as business intelligence — that is shaping how organizations make decisions, target investments and track progress against goals.

HR is often left out of the loop with these developments and is missing out on the huge, potential value that comes from adding HR data to this mix. With the advent of better and cheaper human resource information systems (HRIS), more organizations are looking to measure HR. It is better the HR group takes this on rather than have some other part of the organization do the measurement.