The Machine Room

Abstract

In this chapter, we will be approaching the machine room, or the inner workings, of human capital metrics. The machine room is hot and noisy, not calm and quiet, as you would expect. There may be health and safety issues, if you get bored, lose your way or fall into one of the machines. Be prepared to get your hands dirty and stay focused as we look at the principles behind human capital metrics, different types of metric, sample calculations, meaning of results, benchmarking and target setting, how to interpret and contextualize results, the interplay of quantitative and qualitative data, and different organizational approaches to collecting and sharing human capital metrics.