Abstract:

The inclination for this manuscript is to look at value of HR metrics on return on investment of an organization. With the continuous changes in business dynamics, it has become imperative for organizations to rationalize their cost elements and return on investments, HR Metrics leads to measure the effectiveness of cost effective decision for the organizations. A survey has been conducted from human resource (HR) professionals to identify and better comprehend their perceptions and expectations of human capital measures (HCM) content, its connection with strategy and impact on performance. This paper is based on a quantitative analysis of survey questionnaires based upon a five point Likert Scale, collected from 100 HR Professionals of different organizations. After carrying out preliminary analysis including reliability, validity and normality overall model was tested through multiple regression analysis results showing that there is a significant relationship between HR metrics and organizational performance in terms of return on investment. The findings of the study were consistent with earlier studies. Implications for managers drawn from the results will help policy makers to develop policies and procedures for improving HR productivity and decision making.