By Ian J. Cook

For most of the last 20 years, HR metrics has been an evolving and important, yet secretive and complex, area of HR. This is changing. As HR metrics increase in importance and value so too the access to the information and tools required to capture and apply these measures is getting easier and more open. However, as with all change, it is the myths that develop through the old structure that stop people realizing the benefits of the new structure.  Busting some of these myths will help us take advantage of the value that can be derived from HR measurement.

Myth: HR Benchmarking is Expensive
This myth was once true. The organizations that led the way in developing HR metrics kept their standards and tools as trade secrets in order to run specialized services for large organizations. Given the amount of research that goes into developing a new area of knowledge, this approach is natural. However, we are now in the next phase of metrics knowledge where it becomes more available and less secret. With the publication of the BC HRMA Standards and Glossary, what used to take an organization six months to complete is now free to download. The cost of establishing standards has been removed, making it quicker and simpler for small- and medium-sized organizations to get started with metrics.

It also used to be true that participating in benchmarking services was expensive. Due to the way this service was structured, the two options for benchmarking were a custom project with a consulting firm  (costing tens of thousands) or participation in one or two of the major benchmarking services, most of which cost over $10,000 per year. Again this has changed. As one example, benchmarking is now available to BC HRMA members for less than the average price of a two-day training program.  

Myth: HR Metrics are Complex
Through the old model, organizations that produced metrics or benchmarked would be involved in large-scale programs involving hundreds of pieces of data. It would take three to four months of someone’s time to gather, review, prepare and submit the necessary data. The specialized nature and price of these services drove the orientation towards large data volumes.

In this next wave of HR benchmarking, the focus has shifted to fewer more frequent measures. Instead of 300 data points annually, the BC HRMA service focuses on 22 key data points quarterly. This means it is relatively quick and straightforward to participate and because organizations are capturing the information frequently, it just becomes a normal part of the work. Most of the data can be derived from your payroll system and captured using Microsoft Excel. This reduces the complexity and increases the opportunity to benefit from the data. Although getting started with metrics requires additional effort, once organizations are up and running most report that they take three to six hours per quarter to gather and submit their data.

Survey evidence[1] across Canada suggests that HR metrics is one of the top strategic initiatives that HR people want to deliver on for their organizations. Due to the previous structure of this area of knowledge and the processes that existed whilst the field got established delivering on this type of initiative was costly and complex. This industry structure has changed making HR metrics more affordable, accessible and achievable than ever before. If you want to deliver on this area for your organization then do not let old myths get in your way.