Analyze The Use Of Metrics in HR Functions EBITDA

Question: Write a paper in which you analyze how the use of metrics has transformed todays organizations, particularly the human resource department? Answer: Introduction This paper described the various aspects of metrics in HR function. The aim of this paper is to evaluate the use of metrics in HR function in the perspective of current organization. This paper enables to determine the value added term of firm process and metrics and concept of valued added working style that applied in the HR function. This paper covers the use of metrics, define value added term and their application in the HR function. Indeed, planning, staffing, job analysis, orientation, training development, performance appraisal, career planning, compensation, benefit, labor relations and record-keeping are the significant function of the HR. Further, metrics refer to measure of quantitative evaluation. Use of metrics has transformed organizations examples Indeed, metrics can relate to a firms EBITDA, income per share or other kinds of financial measures. Metrics is useful for measure of quantitative appraisal used for measurement, production, track performance and comparison. Sometimes HR metrics are missed by businessman who thinks that it is complicated to trade with them. But HR metrics can support uncover opportunity and challenges within the firm which allow you to understand which field you need to concentrate to improve your organization condition. Here are ten significant metrics that is useful in the perspective of human resource management that is described below: Cost per hire: This is very important metrics which used in human resource management. It tells us when we hired new worker that what is your actual cost to hire new staff or worker. (Richardson, 2012) Spice Jet Ltd airline Sector Company decided to use of metrics as control of cost per hire. If they hired low cost employee then they can get good profit through low expenses in the perspective of salary. Airline companies faced lot of competition in the perspective of hiring costs of employees. Revenue per staff: It explains that how much you earned from your employees which is hired by you in past. If organization earning is not sufficient as compare to investment cost in staff. Then, organization needs to evaluate the reason behind low earning or revenue. Absence rate: It is simplest metrics of HR that gives organization to look at just how many days your staffs are working that shows staff satisfaction rates. (Sullivan, 2004) Benefit cost: It explains benefit package costs for per staff. How you will motivate your staff that is calculated by these metrics. Organization will provide extra benefit to their employees. Then, employees will take interest in high productivity. Satisfaction: This is very important metrics for human resource management. It provides satisfaction to your employee. Satisfaction plays an important role in the human resource management perspective. HR provides satisfaction through their function in the organization. Turnover: This HR metrics give you a look that how many staff leaves your organization in the specific time. This metrics is very useful in the perspective of turnover. Tenure: This metrics helps you to show the average time amount that your staffs have been with the firms. (Sullivan, 2004) Turnover costs: HR metrics can surprise staffs and support you that how much it costs when you get lose as vacancy costs, new hiring costs, staff based on separation costs and new training costs. (Richardson, 2012) Worker compensation: it tells you the exact costs of worker comp per staff. It helps in manage HR function activity in the organization. Worker compensation must be flexible as per their working efforts if they produce good work then organization should pay high compensation. Time to fill: HR metrics support highlights the efficiency of human resource department and assess the time to fill a vacant position in your firm. (Richardson, 2012) Value added terms of organizational processes and metrics Indeed, a firm improves its product or service before offering to their customers. Value add is used to depict instance where the organization takes a product that believed a same product with few changes from their competitor and provides potential customers with greater sense of value. Values add can raise the product price and value. Example: When we bought a new computer from market then they offered one year free help on this product that would be a value added character. A single person can bring value add to service that they perform like as advanced financial displaying ability or skills to a position in when they hired managers may not imagined the desire for these kinds of skills. (Kennedy, Peters, Thomas, 2011) Moreover, it is sure ways to add value in the firm productivity by sales person is normally evaluated by number of units sold or contract level of clients. These quantities indicate a direct affect in organization income. The main challenges with information manage r (IM) is to showing the value added of his work. Values add will help to focus on a process or project improvement in the organization from start to finish through following points are revenue or cost result, stakeholder, information need and the impact. Further, HR professional are examined every day to adjust program or process that prove value add and affect to bottom line of the firm. Metrics provide corporate performance decision in various ways such as performance target, data source, specific definition, thresholds, and historical performance pattern and involves supporting documentation. These types of reporting can support executives idea of the HR function as business strategy partner. Workshop concentrating on the application of value added human resource evaluation in current costs business world. Organizations believe on business intelligence to analyze, monitor and report on their performance. Evaluations are requiring in the human resource to give HR professional the technique that they need to fulfill the demands of attracting knowledgeable workforce. Concept of value added can be applied to the HR function Indeed, the concept of valued added is very important for business. Business adds more value through lead higher revenue. Some organization charge more as compare to other kinds of business because it adds more value as compare to other organization. Example: if you take a flight from Delhi to Mumbai. Then, economy class airline will charge little high as compare to local class airline. Because of they add more value in its services. In spite of this, both flights classes are travelling in same distance and equal cost of fuel. These are several way to raise more value in value added that described below: Innovation of brand: Organization raises the product value through generating creative brand of product. Brand show quality and high status of the specific product. (Sullivan, 2004) Advertising: Advertising has potential to create strong brand loyalty within its customer. Advertising plays a significant role in the organization that increases the sales volume and profit margin. (Fernandes, 2013) Additional features: Organization includes the extra feature in the product or services to raise value of the product that is known as value adding. Toyota has twelve versions of its model. Providing better services: Organization providing better service quality to raise the value adds. Consumers are willing to pay high amount for the product if we provide high value in the product or services. (Sullivan, 2004) Planning, staffing, job analysis, orientation, training development, performance appraisal, career planning, compensation, benefit, labor relations and record-keeping are the important function of the HR. Value added mean raise the product costs and value. HR function and value added are interrelated because without good planning, training program we cant improve our product quality. So, it is applicable in the HR function. Conclusion On the basis above discussion, it can be concluded that clear use of metrics, concept of value added as well as high ability to adopt the new technology in HR function helps it to maintain its competitive position in the all over the world. References Fernandes, F., C., (2013). The Contribution of Technology to Added Value. USA: Springer Science Business Media. Kavanagh, M., J., Thite, M., Johnson, R., D., (2011). Human Resource Information Systems: Basics, Applications, and Future Directions. USA: SAGE Publications Inc. Kennedy, K., Peters, M., Thomas, M., (2011). How to Use Value-Added Analysis to Improve Student Learning: A Field Guide for School and District Leaders. USA: Corwin Press. Kokemuller, N., (2014). How Does HR Add Value To An Organization? Retrieved from: https://smallbusiness.chron.com/hr-add-value-organization-50980.html Lawler, E., (2012). Effective Human Resource Management: A Global Analysis. USA: Stanford University Press. Richardson, D., (2012). The 4 Most Useful HR Metrics For The Future. Retrieved from: https://info.profilesinternational.com/profiles-employee-assessment-blog/bid/111457/The-4-Most-Useful-HR-Metrics-for-the-Future Snair, S., (2009). The Complete Idiot's Guide to Power Words. USA: Penguin. Strayer, S., D., (2005). Vault Guide to Human Resources Careers. USA: Vault Inc. Sullivan, J., (2004). Rethinking Strategic HR. USA: CCH Incorporated. Sullivan, J., (2004). What Are The Best HR Metrics For A Large Organization? 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