Eight Considerations to Turn Transactions and Data into HCM Insight
“Human capital is the profit lever of a knowledge economy,” an observation according to
Dr. Jac Fitz-enz (commonly known as “Dr. Jac”), acknowledged as the father of human capital strategic analysis and measurement.
If you see the wisdom in this, you’ll also agree with the advisability of measuring an organization’s human capital. Here are eight areas to consider when building an HR scorecard that can yield insight into the performance of your organization’s human capital:
- Before you begin to measure:
- Identify strategic recruiting measures, including:
- Define strategic absence management measures:
- Establish strategic benefit administration measures:
- Set compensation measures:
- Set strategic compensation measures:
- Institute strategic goal management measures:
- Define strategic performance management measures:
While these considerations are not exhaustive, they provide a good basis for beginning to turn HR data into insight. Don’t be afraid to step away from traditional HR metrics. Think about what is important for your organization. As always, it’s critical to crunch the numbers and
to seek and verify information if the numbers seem suspicious.
Good luck. Remember what you’re moving with the lever.
Posted by Lisa Rickard, Senior Manager, Product Marketing, Epicor HCM