The most important HR drivers to have business impact are identified as leadership, performance management and engagement, yet few organisations collect data on their effectiveness.
These are the key findings from a joint Top Employers Institute and Bright & Company | HR Strategy global study of more than 200 HR executives in 36 countries on trends in HR reporting and HR analytics.
Metrics and KPIs offer objective insights into business performance, yet according to this worldwide survey, most organisations simply do not measure the HR drivers that impact on business outcomes.
The in-depth report, “Measuring HR Impact: Results of the HR reporting & analytics study”, is the second collaboration between Top Employers Institute and Bright & Company | HR Strategy. It uncovers the disparity between the importance of various HR drivers and the level at which they are tracked and measured. One of the main findings is that the most impactful drivers, ‘leadership’, ‘performance management’ and ‘engagement’ score the lowest on average metrics use. Almost 69% of the respondents rated leadership as a key HR driver, but only 32% is really measuring the effectiveness in this area. However, less impactful – and often more objective - drivers are often closely tracked.
The report highlights these disparities – often caused due to the intangibility of key drivers - and offers insights into the importance of measuring people effectiveness rather than HR effectiveness, using the data captured to challenge whether organisations should revisit methods of measuring the effectiveness of their HR strategies.
A copy of the full report can be downloaded here
For more information about the study or report, please contact our colleague Rob van Dijk