Improving Business Performance Through Effective HR Decision Making

Katherine Mehr

In society we measure just about everything. The key is to make effective decisions based on the metrics that will help seek results and solutions to day-to-day activities. These metrics are also applied to organizations to help them achieve desired business results.

Within organizations, human resources is the most critical business unit. But the success of a business really stems from the people, productivity and performance. For organizations to remain competitive they must improve their performance by reducing costs, innovating processes and improving productivity. And in doing so, having HR metrics in place will help seek results that are critical to the overall organizational strategy.

According to Leo Flanagan, President of Flanagan Consultants, LLC., HR decision making has an important influence on organizational performance. He said HR decision making is finding ways to invest in your people to sustain the maximum growth of your organization and determining where to spend your dollars to drive the business in terms of people and people practices.

In doing so, HR metrics is the solution. HR metrics are vital to the business as they collect information that can ensure that management and development initiatives remain relevant with overall business goals. Additionally, they help create cost effective strategies that aim at ensuring high performance of the organization and workforce.

By showing the value of return on investment, HR metrics becomes a critical part of advancing your organization. If metrics were not in place, it would be difficult to make investments based on facts. In some organizations decisions are made on best practices, which may work for some, but not necessarily for your own. This is why having a concrete HR metrics strategy and initiative in place allows management to make sound business decisions that are supported by data to sustain business cases.