CHROs are under increasing pressure to become more accountable for workforce costs and effectiveness, especially during shifting labor markets and an uncertain economy. But the path from employee to a line item on the balance sheet isn’t always clear. There’s often several degrees of separation between workforce initiatives and the actual bottom line, making it difficult to quantify and clearly convey impact.
Stakeholders and shareholders are requiring enhanced reporting on human capital metrics and top-line productivity levels — often measured as revenue per employee — are higher in human-centric workplaces. Accenture found organizations that view people as a driver of organizational effectiveness — in tandem with data and technology — stand to gain up to 11 percent on top-line productivity. The same study found when organizations invest in data and technology alone, that number drops to 4 percent — that’s a 7 percent gap. People are the source of competitive advantage and business growth.
People analytics enables organizations to reliably measure HR effectiveness across the employee lifecycle, providing the opportunity to make an impact at every stage, optimize for the long term and draw a clear line between people and business outcomes.
We’ve put together a checklist of 10 important people metrics that have a big financial impact.
