HR Metrics that Matter

How CHROs and HR leaders can leverage data to elevate their seat at the executive table

CHROs have an opportunity to leverage their position as financial stewards of the largest item on the P&L sheet: employees. To do so, they need to tell a compelling, data-driven business story about their function. By applying analytical rigor and reporting to their role, CHROs can evolve themselves into a "Chief Human Financial Officer" on par with the CFO, CMO, and CRO in board meetings.

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HR Metrics that Matter: How HR Leaders Can Harness Data

CHRO -> CHFO

5 HR metrics for the 'Chief Human Financial Officer'

Representation

Analyze the demographic breakdown of your current workforce to understand the distribution of identity groups at each level and department in the company. This data can help justify the expense of people program and initiatives through their potential impact on talent attraction and retention.

Benchmarking

To understand the "health" of equity at your company, you need comparison points. Benchmark your employee population against both internal talent availability and external labor pool data to identify gaps compared to what's achievable. Once you set data-driven targets, you can forecast when you can realistically hit them.

Pay Equity / Pay Gap

To tell the full story of your pay gap, you should analyze both pay equity and your unadjusted pay gap. As new regulations, shareholder proposals, and peer disclosures put pressure on companies to disclose these figures, it's crucial to understand where you stand and have an actionable strategy to address them.

Promotion Rates

Promotion gaps are a significant contributor to pay gaps because they prevent specific groups from accessing the career advancements that lead to higher pay. This makes promotion rates a crucial HR metric that not only informs your DEI programs, but can also flag high impact areas to move the needle on pay gaps

Attrition Rates

If you put effort and resources into equitable hiring and promotions but don't retain equitably (often due to culture issues and lack of inclusion, belonging, and support), you can still end up with representation gaps and pay gaps. By analyzing attrition rates you can drill down to determine why certain groups leave at higher rates to pinpoint interventions.

Representation