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HR strategyLettersHuman capital

Quest for people metrics is not an impossible mission

by Personnel Today 18 Oct 2005
by Personnel Today 18 Oct 2005

Ruth Spellman is absolutely correct in her assertion that “it has got to be possible to come up with some [people] metrics” (Personnel Today, 4 October).

Most of the accepted accounting metrics are sector-specific and there is absolutely no good reason why people metrics should not be the same. Providing it is sector-specific, what is wrong with metrics such as:



  • turnover per employee
  • EBIT (earnings before interest and tax)/PBIT (profit before interest and tax) per employee
  • training and development costs as a proportion of either turnover or cost of sales?

If HR was indeed a ‘strategic’ function, Spellman’s observations on who would be leading the drive to develop standards would not hold true. Unfortunately, her observations and those of Ian Foster (Letters, Personnel Today, 4 October) are largely correct.

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Many HR practitioners still think our primary role is to develop ‘people-friendly’ policies that give everyone a warm glow. This is a nice-to-have. The reality is that HR’s role is to maximise the cost-effective use of our most flexible resource – our people.

Robert Purse
Managing consultant
Langdale

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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