What Gets Measured, Gets Done
Many attribute the quote, “What gets measured, gets done” to the author and management philosopher, Peter Drucker. The statement succinctly captures the essence of the rationale for metrics. Less elegantly stated, measuring something gives you the information needed in order to make sure you actually achieve what you set out to accomplish.
Why Use HR Metrics?
HR metrics are a quantifiable measure used to track and assess the status of a specific HR process to assess its efficiency and effectiveness. HR metrics play a critical role in solidifying HR’s place as a strategic partner in an organization and can measure many processes such as cost per hire, turnover and revenue per employee. HR analytics has grown exponentially over the past ten years. In a survey referenced by Harvard Business Review involving 1,510 respondents from 23 countries across five continents, the following was reported:
- 51% of HR respondents said that they could perform predictive or prescriptive analytics, whereas only 37% of finance respondents could undertake these more advanced forms of analytics.
- 89% agreed or agreed strongly that “My HR function is highly skilled at using data to determine future workforce plans currently (e.g. talent needed),” and only 1% disagreed.
- 94% agreed that “We are able to predict the likelihood of turnover in critical roles with a high degree of confidence currently.”
- 94% agreed that, “We have accurate, real-time insight into our employees’ career development goals currently.”
Diversity and Inclusion Metrics
A McKinsey study that evaluated diversity levels at 366 public organizations found that ethnically diverse companies were 35% more likely to outperform their competitors in terms of profitability. Most companies have a Diversity and Inclusion Policy and initiatives in support of the policy. However, without metrics, it is difficult to set targets and program goals, assign accountability and measure the impact of the initiatives. Connecting diversity and inclusion with business metrics is very powerful intelligence for stakeholders. Metrics can be used to engage stakeholders, strengthen corporate commitment, champion further change, identify challenges and foster employee trust. When broken down into steps, creating diversity and inclusion metrics is a manageable process.
Identify Which Diversity Aspect to Track
Diversity extends beyond race and gender, two of the most often discussed dimensions. Depending on your business and employee needs and demographics, your organization may wish to examine ethnicity, nationality, sexual orientation, gender identity, faith, educational background, veteran status, socio-economic status, familial status, marital status, generation, disability, age, spiritual beliefs, educational attainment or citizenship among others. Diversity metrics must be relevant to your business and its place in the local economy. Valuable resources can be wasted by targeting the wrong diversity issues and implementing the wrong solutions.
Ensure Ethical and Legal Compliance
Diversity initiatives likely involve the collection of data that may be subject to federal and state laws. Review your data collection policies and procedures to ensure data is collected and stored in a legally and ethically compliant manner. Sometimes this can be achieved through voluntary surveys and requests to self-identify. Companies should ensure collected data is not used to discriminate against employees and that any voluntarily disclosed information is stored without divulging identifiable information.
Identify Baseline Measures
You will obviously want to track the progress of diversity initiatives but tracking data is meaningless without baseline measures. For example, if your organization wants to increase the number of non-English speaking applicants making it to final round interviews, it is important to know how many non-English speaking applicants were asked to final round interviews before any diversity initiatives are implemented. Once baseline data is captured, you can track post initiative data and compare the two.
Set Goals
What do you hope to achieve by your diversity initiatives? What is your desired outcome? Goals should be specific, measurable and carefully articulated so individuals know what is expected of them. Goal-setting is particularly important in diversity metrics because without them, hidden or unintentional biases may surface and override individuals’ intentions to be fair and inclusive.
Assign Responsibility
Task individuals with implementing initiatives towards achieving the set goals. Hold those individuals accountable for reaching their goals through specific performance management tools. The ultimate accountability, however, resides with your company’s CEO.
Analyze Results
It isn’t sufficient to simply track and report your results. You must carefully analyze data to determine what is working and what is not. Modify the initial action plan if you are not achieving the desired results. Don’t be afraid to completely overhaul your original plan. Although the data was collected in the past, you must be able to interpret the data in a way that gives you insights to the future. Data results can help you create new initiatives.
Review Metrics Regularly
You should regularly review diversity and inclusion metrics, and change or update them as necessary. Just as financials are constantly reviewed, so should diversity metrics.
Corporate Culture
An organization’s culture is its unique set of shared beliefs and values established by management and communicated to all by the way in which the organization operates. Diversity and inclusion must be part of the organization’s cultural fabric. Just as our world benefits from a diverse collection of skills and experiences, so too does your workplace. An organization that values diversity and inclusion reaps numerous benefits including increased productivity, profits and creativity. Employee engagement and morale soar when employees feel respected, valued and important to the overall success of an organization.
Contact Your Trusted HR Advisor
Smart HR has assisted a range of clients identifying diversity and inclusion initiatives and establishing reliable metrics for them. Should you need assistance drafting clear diversity policies, ensuring compliance with federal and state legislation concerning diversity, communicating a strong message to your employees about diversity or setting up HR metrics, call Smart HR today to set up an initial consultation. If you aren’t sure what you need or want but are interested in learning more about Smart HR and its offerings, Smart HR is happy to have that conversation as well. Call today.
This blog is the first in a series addressing diversity and inclusion in the workplace.
