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The main purpose of HR Metrics and workforce analysis is to link HR objectives to strategic business activities. It enables the accessibility of information for proper managerial decision. The development of useful and effective workforce analytics is likely to be viewed in the future as a significant source of competitive advantage.

Scope of the project This study analyses the different types of HR metrics that can be used to measure the health of the organization. These HR Metrics are used by the management to take important decisions to reduce the impact of bad practices on the company. Because of the fact that HR metrics quantify results, it becomes easy for management to see how much of an impact HR has made towards business success.

It highlights the main obstacles in the interpretation and use of HR metrics linking to the organizational financial performance and gives recommendations for the same. The study recommends that prior to changing human resources as a reaction to poor financial performance, corporations should look to other measures such as business strategy, operations, or customer demand and develop an action plan accordingly.

Therefore, organizations assuming a change in HR metrics will change the financial performance of the company. The HR metrics that are vital to support broader business goals, objectives, and decisions are to be measured are analyzed.

The report highlights that HR function now has the analytical competencies which are used for measuring key HR Metrics. The report analyses how the use of HR Metrics and associated analytics use HR Function from Transition from conventional personnel department to operational HR, then to integrated talent management and finally to highly impact HR. S A Hussain, Dr. They enable a company to track year-to-year trends and changes in these critical variables. It is how organizations measure the value of the time and money spent on HR activities in their organizations.

Metrics provide a number of factors that can be measured to show how HR contributes to the business. Some important Measures such as absence rate, health cost per employee, and HR expense factors show that HR has a sense of the importance of human capital measurement in supporting our business objectives.

Data Collection For this project, data and information have been derived from Secondary Sources. The secondary data for this report is collected from websites, published articles from various journals and books, literature and study papers, etc. No primary data was collected for achieving the objective of this project. Limitations HR metrics involve lot of calculations which is especially time consuming. So organisations do not find such time investment profitable. Some metrics include the risk of inaccuracy, making them especially dangerous to use when there is money on the line or doubt about the results.

This is the case with business metrics that rely on forecasts or estimates. HR Metrics should drive action. It could actually be a waste of time. Conclusion Over the past 25 years, much has been written by practitioners, consultants, academics and gurus calling for the HR profession to step up and install better ways to measure not only the efficiency but also the effectiveness of the various HR functions.

Even more important is a call for the measures that will show the impact that HR is having on the organization as a whole.

The theory is that this would lead to more enlightened strategies for managing human capital and give HR the long-lost respect that the profession deserves.

Nowadays, we have a common understanding that human capital drives a large part if not the most of business success. While a few organizations are making good progress in implementing HR metrics and benefitting from them, the vast majority are not.