The economic crisis raises the importance of HR Reporting as the top management needs the immediate information about the development of the organization. The HRM Function has to develop a quick status reports about the organization as the top management can quickly decide about the new initiatives to save costs.
The HRM Function usually reports the basic set of data to the organization, at least the number of employees, number of new hires and exits. The HR Reports are produced with a big delay and they are static, they do not mark the trends in the organization and they do not provide any analytical value added as it can be seen as dangerous for Human Resources.
The trends and their analysis is very important for the HR Reporting. Last year, many organization could monitor a quick and significant improvement in their recruitment measures and the significant decrease in their turnover and fluctuation. The interpretation was usually in the improved recruitment process and increased ability to find the talent on the tough job market. Wrong, the employees are smarter and they feel the changes on the market and the financial crisis before the company can feel it in its financial numbers.
The HRM Function has to provide the top management with the most accurate data for the following areas during the economic crisis:
- FTE Development, including Recruitment Data
- Monitoring of the external job market
- Compensation Development
- Retention (including turnover and fluctuation)
The HRM Function has to provide the data as quickly as possible as the quickest organization can win the war for the best talents during the recession and the top management has to feel comfortable and they have to trust to numbers provided.
