MADISON, Wis. (11/19/12)--The use of human resources (HR) metrics by credit unions is attracting more interest as a means to assess the impact of an organization's "human capital" on operations and financial performance, and as overall strategic development support, according to a new white paper from the CUNA HR/TD Council.
The paper, "HR Metrics: The Numbers in Support of Strategic and Operational Initiatives," discusses how HR professionals may benefit by learning how to gather data and analyze it through metrics, which formulas are most useful to achieve specific aims, and how using metrics fits into the strategic vision and development of the corporate culture.
It also makes a case for collecting and analyzing crucial data to measure the impact of the credit union's most essential aspect: its employees. It presents results of a recent survey on how credit union HR executives are using metrics, examples of common formulas, and case studies of credit unions in various stages of putting metrics to work in their organizations.
In May, the council surveyed credit unions on how they are using quantitative and qualitative assessments of their human capital. The survey garnered 64 responses from current council members and points to some industry trends.
Among the results:
- Asked to rank their experience and expertise using HR metrics on a 1–10 scale, with 1 representing "no experience/expertise" and 10 "extremely experienced/expert," 64% of respondents rated their expertise as a five or lower.
- Asked how important collection and analysis of HR metrics was to their organization, with 1 representing "not at all important" and 10"extremely important;" 59% rated metrics at a six or higher.
- Roughly 85% of those surveyed said turnover was the metric they currently tracked or used. Other leading choices were involuntary turnover rate and voluntary turnover (63% each), cost of benefits (59%), average length of employment (51%), employee satisfaction (44%), promotions (37%), absenteeism (34%), transfers (34%), and employee demographics (32%).
- Most respondents (81%) said they had used HR metrics professionally for 10 or less years
- About half reported using either internal or industry benchmarks to monitor performance.
- In terms of how HR metrics are shared, 28% said the results stay in the HR department,63% share with the CEO, 39% with the rest of the C-suite [the most important company senior executives], 25% with the board, and 26% with managers with reporting staff.
- Over half of respondents calculated metrics and ran reports monthly; 40% also generate annual reports, 37% go with quarterly reports, and 26% produce them "as needed."
- Eighty-seven percent of respondents produce their HR metrics without support from specialized software or vendors.
To obtain the paper, use the link.