APAC Regional HR Strategy

The role of metrics in human resources strategy

HR metrics help measure employee performance, engagement, retention, and productivity. By tracking key metrics, HR can make data-driven decisions to improve workforce management and enhance employee experience. This, in turn, contributes to the organization's overall success and ROI.

For instance, productivity metrics measure the profits generated by the workforce, which can help in planning for revenue targets within an organisation.

A survey across 1,292 companies in Asia Pacific shows that each employee generated an average of $212,000 in revenue:

The role of metrics in human resources strategy

HR metrics also reveal a complete picture of organisational health by showing the current state of the following:

Employee turnover and retention rate — This metric provides the attrition rate per function across the organisation, as well as the average number of years that an employee stays within the company.
Diversity metrics — This shows the gender distribution and gender pay gap across the company. This measures the diversity of the workforce and the inclusiveness of company practices and helps you track demographics and pay equity among different groups. This data comes handy and helpful to prepare for the incoming legislation on pay equity and pay transparency.
Metrics assessing organisational structure — These analyse whether the current makeup of the organisation remains efficient for operations by checking the ratio of managers versus the staff, the ratio of staff per function as well as the demand of certain functions for senior-level experts who do not necessarily have people management skills. Understanding the most appropriate span of control for your organisation also plays a key part in reviewing your organisation structure.

_Source:_{https://www.wtwco.com/en-id/insights/2024/09/major-trends-in-asia-pacific-and-their-impact-on-the-employment-landscape}