Setting HR goals is an essential practice for any business that wants to see growth and improvement. In the past, company goals were set based on data, but often leaders were left making inferences about the data they worked with.
The Benefits Of Goal-Setting
The results of effective goal setting for HR managers are actually measurable and have been correlated with stronger overall performance in a number of ways.
According to a study by Erik Berggren and Jac Fitz-enz of the Workforce Intelligence Institute, businesses that set goals and share them with their employees see increases in profitability. The reason why is clear: when employees understand the desired outcome, they better understand how to do their jobs. They can prioritize their tasks more effectively and use their time more wisely.
HR analytics starts with goal-setting. After all, your goals determine what metrics you should be tracking. By determining where you are currently, you can decide where you want to go and what factors need to change in order for you to get there.
We’ve discussed before how numbers alone don’t communicate much about a business. It’s the story behind those numbers that actually tell a business how to make the necessary changes for improvement. This is why it’s important to set up the right metrics to track and look at multiple metrics together to really evaluate which factors are impacting your company’s performance. All of that data transforms into clear steps to achieving your company’s most important goals.