If HR professionals want to actively participate in the strategy of their companies, they must be able to communicate with management through well-selected HR metrics. The metrics should meet some common standards:
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they must be based on the strategic context of a company,
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they should include historical information,
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they should include current information,
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they should include possible future events,
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they should be targeted at their audience,
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they should engage and motivate the audience to an action.
The starting point for creating the right HR metrics is to fully understand the strategic context of the environment in which you operate. Blr.com pointed to ten questions that you should ask and answer in this context.
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How does your organization generate revenue?
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How do human resources add value to your organization?
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Are your HR activities related to the strategic and business objectives of your company? How does HR contribute to these goals?
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How does your organization measure success? What are the key metrics?
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What effect does HR have on the key metrics?
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What sets your organization apart on the market? How do HR activities impact these indicators?
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What risks and opportunities does your organization have in front of it? What effect do HR activities have on it?
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What decisions do you want to influence?
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Can you connect metrics with decisions?
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What happens if your organization does not meet its target?
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