The Human Resources (HR) department often seems somewhat mysterious — some view it as focused on numbers, metrics, and processes, while others see it as centered on emotions, culture, and people. Yet in today’s organizations, HR’s role extends beyond either perspective — it serves as a bridge between both worlds. This raises an important question: how can we truly measure HR’s impact?
The modern HR department must navigate and integrate both the “hard” and “soft” sides of management. On the “hard” side, it’s about implementing processes, setting metrics, designing compensation systems, and ensuring compliance with labor laws. On the “soft” side, it’s about shaping company culture, driving engagement, advising managers, and improving the overall employee experience. Today, HR’s work goes far beyond managing contracts or vacation planning — it can be a key source of agility and competitive advantage for the organization.
Why measurement matters?
One of the most common criticisms of HR departments is that their results are hard to quantify and their decisions often rely on intuition or a few employee comments. To avoid such subjectivity, it’s essential to establish clear measurement criteria that demonstrate HR’s effectiveness and its real impact on the organization.
A company’s success in human resources can be evaluated through three key factors:
1. Trust in the HR team. Many misunderstandings can be resolved through direct conversations and consultations, helping colleagues find the right approach. This helps minimize the chances of conflict and confusion.
2. Internal career growth. In a healthy organization, clear career paths are defined and it’s measured what share of positions are filled by internal candidates. This indicator shows how well career opportunities are communicated, how accurately managers recognize their team members’ potential, and how effectively internal talent is developed.
3. Manager readiness to lead teams. HR should act as an advisor, helping managers lead their teams and build leadership skills. The strength of this indicator directly reflects the maturity of the HR function within the organization.
How to measure the “immeasurable”?
Organizational culture and leadership competencies are often considered “soft” indicators, difficult to express in numbers. Gradually, HR teams have discovered ways to translate them into practical and consistent practices. It’s important to emphasize that achieving the most genuine and sincere result requires doing quite a bit of homework.
The most accurate way to measure company culture is through regular engagement surveys.
At Edenred Finance, for example, such surveys not only create a safe space for feedback but also help measure employee engagement, satisfaction, and even their evaluation of direct managers — while comparing results with market benchmarks.
However, the success of these surveys doesn’t depend on the questionnaire itself, but on the organization’s readiness.
If the management team isn’t prepared for open feedback and real change, or if employees are afraid to speak honestly, the survey becomes a mere formality. Therefore, the first step is leadership alignment: are you ready to hear the truth — and act on it? The second, equally important step is preparing the employees. People must understand why the survey is being conducted, how the company plans to use the results, and how anonymity will be ensured.
Research shows that trust in the HR department directly depends on whether employees see real follow-up actions after surveys are completed.
HR — predictive, not reactive
As the demand for analytics grows, HR can no longer rely solely on intuition. It must provide data-driven insights and help leadership act quickly and decisively. Companies that integrate HR data into their overall strategic planning are better equipped to make informed decisions and adapt swiftly to market changes. Change need not be feared or anticipated—when we embrace it as a constant, it becomes the rhythm of life.