By Ian J. Cook, CHRP

The most frequently used analogy for measuring HR is that of driving a car without a speedometer. How would you drive if you did not know your speed?

The deeper we look into HR measurement, the less satisfying this analogy becomes. The basic premise that you need information to perform well is correct. However, actions based on a speedometer are obvious; when you are going too fast, you take your foot off the gas pedal.

This direct link between information and action is not the case for HR. When turnover is too high within an organization, it is not always obvious what the action should be. Do we increase salaries? Do we increase our benefits? Do we hire different people? Do we change our management group? All of these could have an impact on moving our dial.

It is this link to action that has us searching for a better analogy. The start point of this quest is to determine exactly what type of system we are measuring. A car is a fully rational system. A car obeys the laws of physics and will do exactly the same thing every time. Human systems are not purely rational as they are made up of agents who can chose to change their behavior and actions on a daily and hourly basis. This is why the speedometer analogy is insufficient.

A more rewarding analogy is that of a doctor diagnosing a patient. HR does not work on a rational system in the same way that finance or operations do. HR works on a social system or an eco-system. Employees have choice and do not always behave rationally therefore the system that HR measures is more complex, nuanced and requires considerable expertise – exactly like a doctor who is “measuring” the human body to understand what is going on within this eco-system.

Here is where the analogy becomes even richer: when a doctor detects a raised heartbeat it can be a symptom. There are a lot of reasons you could have an elevated heart rate – you just ran for a bus or your arteries are clogged etc.

It is the same with HR. An increase in voluntary turnover is a symptom. Similar to the raised heartbeat, there are a number of reasons explaining the increase in turnover. The job market has suddenly taken off with a new competitor opening its doors, or a new CEO has arrived and uncertainty is high. The role of HR then becomes just like the doctor in watching for and interpreting the symptoms.

HR is also like the doctor in terms of applying expertise—knowing what else to look for, how to build a clear picture of what is happening within their eco-system and planning the right intervention. For example a doctor measuring a constantly elevated heart rate is also likely to look at the persons overall weight, level of physical activity, blood pressure and so forth to determine if the symptom is temporary or more permanent. They are also likely to look at patient history to determine the underlying condition that is causing the symptom.

HR considering an increase in voluntary turnover is going to look for other symptoms through their exit interview data, breakdowns within their metrics data such as voluntary turnover by age or level or financial data that suggest employees know something is wrong that management has yet to spot.

This why we measure HR. It is not simply to understand how fast we are going and whether or not we should slow down. The human system at play within every organization is too complex for that. We measure to gain a clear insight into the effective and ineffective functioning of the core of our organization, the dynamic activity of the people. We measure for the same reasons as a doctor because it is hard to tell what is wrong or right with someone simply by looking at them from the outside. We measure because the information, once gathered, analyzed and interpreted over time, leads to powerful insight. This not only identifies and fixes issues, but provides an understanding of potential competitive differentiators and the capacity to shape, influence and enhance the outcomes achieved by the organization.

HR is at the early stages of measurement. We are like a doctor armed only with a stethoscope and a thermometer. The results being gained through this measurement and the potential for even greater results suggests that growth and improvement will be fast and those who embrace this field and invest in their capabilities here will soon have tools equivalent to an MRI.

HR also needs to measure because we want to be treated as professionals with expertise and a deep body of knowledge which has value. Research and measurement is slowly proving this to be the case. We want to be seen and understood to have the same standing as a doctor.

The converse that comes from a lack of measurement is that we are at best tolerated as potentially effective but incomprehensible – the status often given to the witch-doctor or shaman of old.

Interested in measuring HR? Find out more about BC HRMA’s HR Metrics Service.

Throughout his career Ian J. Cook, MA, MBA, CHRP, has pursued his fascination with people and business. During his early career, Ian was both an entrepreneur and an operational manager. These experiences led him into consulting on organizational effectiveness, a path he followed for 10 years while serving some of the world’s leading organizations. Ian has established a reputation as a strategic business builder who is far-sighted and thought-provoking.