Benchmarking HR Metrics in UAE

HR metrics is an emerging science in the Gulf Region, not yet widely practiced and not in a consistent fashion that allows companies to compare themselves to one another. Members of ORC’s UAE HR Network are banding together to advance HR metrics in the region. The group proposes to develop a common set of useful metrics that will provide insight to the HR function’s effectiveness and contribution to the organization and allow members to benchmark with others in the Network.

“It’s important for HR to be accountable for its own success,” explained John Macdonald, Managing Director of ORC Worldwide’s Middle East region. “Good metrics help HR talk the language of the business, help executive management to better appreciate HR’s added value, and identify those HR programs that aren’t delivering a return on investment so they can be fixed or eliminated.”

At the UAE HR Network’s October meeting, Elke Willaert and Anu Daga of DHL shared their experience with implementing HR metrics in the region. They demonstrated the HR Scorecard that has been developed in recent months and how it contributed to a reduction in staff turnover and an improvement in employee engagement. Focus on measuring results, they advised, rather than activities, and integrate data collection into day-to-day processes. Use metrics that establish one or more of the following:

• Quantity (some numerical output)
• Quality (e.g., error rate or improvement)
• Time (speed, duration, or due date)
• Costs and benefits
• Perceptions (satisfaction, reaction, or opinion)
• A benchmark position (e.g., a starting point or a competitor company to which progress can be compared)

In the meeting, Network members agreed to create an HR Metrics Working Group charged with the task of facilitating the development of an agreed set of HR metrics for use in benchmarking among network members.

The UAE HR Network provides companies active in the Middle East a confidential environment in which to exchange practical information and experience on local, regional, and global HR issues affecting the region. For more information, contact John Macdonald at +9714 339 7967 in Dubai.