The purpose of having metrics for HR is to show value for the initiatives that HR is carrying out. How can the management of your company know if the processes put in place by the HR department are saving your organization money or costing it money? Developing the right metrics to measure the right thing requires data and input from decision makers that are tasked with aligning the internal processes with your companies values and stated goals.
Metrics do not just have to be about directly measuring costs like Cost Per New Hire, it is also important to measure those factors which indirectly affect productivity and efficiency like Employee Happiness and Engagement. Measuring key performance indicators like talent management can help to manage human capital to ensure organizational success.