Navigating the complexities of modern HR without clear metrics is like driving to an unfamiliar destination without directions or an address — aimless and inefficient. However, workforce analytics can serve as your go-to GPS solution for strategic HR management.
Traditionally, HR metrics resembled folded paper maps: they were limited to basic headcount and turnover tracking, making the use of metrics reactive and narrow. Today, advanced analytics act like a sophisticated GPS tool, predicting turnover, engagement dips and skills gaps that may pose potential challenges ahead.
The most common HR metrics today are:
Looking to the future, real-time, AI-enhanced metrics promise to proactively steer your organization even more. As early as today, workforce analytics can harness AI for storytelling, providing narrative insights from data as well as predictive capabilities.
Much like a GPS, every metric cannot effectively guide you. The most valuable metrics are directly tied to your destination — your intended business outcome. For example:
Specifically addressing the HR-to-employee ratio, Figure 1 shows an average of five HR professionals in APAC organizations that have 90 to 240 employees.
| Headcount | Number of HR professionals |
|---|---|
| Less than 90 | 3 |
| 90 to 240 | 5 |
| 240 to 620 | 12 |
| 620 to 1,600 | 26 |
| 1,600 to 4,100 | 50 |
| 4,100 to 10,600 | 137 |
Yes, organizations can use Figure 1 as reference benchmark data. However, there are other factors aside from organization size that need to be considered when you review your staffing ratios.
Yes, organizations can use Figure 1 as reference benchmark data. However, there are other factors aside from organization size that need to be considered when you review your staffing ratios.
The role of HR in your organization also is a key consideration. Is it more of an operational HR function that has a higher HR headcount compared to a highly strategic HR function? Industry also is a factor as it relates to companies with similar sized revenue and headcounts, making benchmark market data even more relevant.
Continuing with our GPS metaphor, if pay equity is your desired destination, then you must set clear goals to bridge the gender pay gap and align them with broader diversity and inclusion strategies. As you consider your approach to compensation and rewards, you need to:
Revenue per capita is your organizational compass that points toward profitability. This metric indicates how efficiently your workforce generates value, guiding strategic decisions in hiring, training and resource allocation.
By continually monitoring revenue per capita, you can realign resources to ensure every employee contributes optimally to company earnings. In turn, this leads to balanced growth and financial success.
As organizations embrace workforce analytics, they equip themselves with tools to steer through today’s complexities and arrive at a more sustainable future. Like a reliable GPS, these metrics provide guidance and ensure HR strategies align with the path to success. In this journey, staying adaptable, transparent and proactive will secure a fair and inclusive workplace that thrives amid change.
WTW’s Workforce Analytics HR Dashboard provides support to HR professionals who want to optimize their workforce. Using AI, the dashboard supports strong storytelling, narrative data insights and predictive capabilities. To learn more about the dashboard or request a demo, reach out to your WTW contact or email us to set up time to talk.
