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Article | Beyond Data

How HR metrics contribute to organization success

By Evangeline Daquilanea | June 24, 2024

Missing any HR-related metrics can make or break your company’s success. Make sure you measure what matters.
Compensation Strategy & Design|Employee Experience|Ukupne nagrade |Work Transformation
Beyond Data

The workforce is any organization’s most important asset. Investing in competitive pay as well as overall wellbeing ensures employees are happy, engaged and motivated. Certainly, engaged employees help companies achieve strategic business goals.

Metrics are the only way to know whether programs and practices are appropriate and effective. After all, what gets measured gets managed, right? With that understanding, there are several key performance indicators that you, as an HR executive, must measure and manage to support your organization’s business goals.

Gender pay gap

Conducting a gender pay gap analysis reveals the difference in pay between women and men. The goal is to have as small a gap as possible and then work toward closing that gap. This supports an organization’s commitment and aspiration to be equal and fair.

Addressing gender pay positively affects organizational performance. Diverse and inclusive workplaces, where gender pay equity is prioritized, tend to be more innovative, productive and competitive. In Asia Pacific, there still is work to be done to close this gap (Figure 1).

With legislation widely being drawn to focus on closing gender pay gaps and ensuring pay equity across the workforce, the importance of equity cannot be overemphasized. Employees’ rights to equal pay are being reinforced by increased pay transparency regulations across many countries.

These moves help ensure that all employees are treated fairly and, ultimately, helps promote diversity and inclusion. For any organization, getting this right translates in the talent marketplace as being a responsible employer that runs a sustainable business that attracts, retains and engages the employees needed for future success.

Understanding your gender pay gap is the first step. We have seen success in fair pay initiatives when organizations:

  • Increase awareness of and communicate policies and benefits that promote an inclusive culture
  • Reduce and/or remove gender bias from recruiting, promotion and performance management
  • Introduce female mentoring programs
  • Establish and support internal networks
  • Improve maternity support and return-to-work programs
  • Set gender-mix targets by career level
  • Set a target of women earning more than a certain salary

Span of control

The higher the number of subordinates who report directly to a manager, the wider the span of control for that manager. The goal is to get to an appropriate span-of-control level to achieve optimal effectiveness and efficiency.

A proper span of control significantly impacts efficient communication. If a span is too wide, it can lead to fragmented or delayed communication. It also can lead to misunderstandings or inefficiencies.

However, a reasonable span of control enables managers to focus on coaching, mentoring and developing team members. Personalized attention is crucial for fostering employee growth and skill development.

Depending on how wide or narrow, an organization’s span of control greatly influences:

  • Resource allocation
  • Cost savings
  • Decision making
  • More focused supervision
  • Agility and responsiveness

Asia Pacific sees varying spans of control per function (Figure 2).

Overall, span of control plays a crucial role in an organization’s effectiveness, communication, employee development and resource allocation. Finding the right balance is essential for maximizing productivity, efficiency and employee experience.


Reviewing the number of employees by level in each layer can help identify whether key areas across the structure are too heavy or redundant. Consider the number of layers against the number of levels in each role or function.

An overly complex hierarchy can affect the speed of decision making, and the same level of reporting relationships can affect management relationships. For example, some managers may be too deep in the reporting layers for their level. Have these been misplaced roles? Is there a slowdown in decision making because of a heavy reporting structure?

Individual contributor-to-manager ratio

This analysis helps ensure the appropriate percentage of executives, mid-level and frontline managers to manage work effectively. It also helps determine if some critical functions may only need talent with senior-level expertise rather than people management skills.

It is important to identify the appropriate ratio of leadership talent to manage work efficiently. Benchmarking data also helps correctly classify the range and type of oversight for the work.

Measure what matters

Ensuring you have the right metrics will help you make the case for programs and practices that effectively and efficiently attract, motivate and retain the talent you need for ongoing organizational success. And this all starts by measuring the right metrics.


Director, Rewards Data Intelligence – Australia and New Zealand
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