The first and most critical step in selecting HR metrics is determining the purpose for which the data will be used (D). At the SPHR level, metrics are not collected for their own sake; they are selected to support strategic decision-making, demonstrate value, and measure progress toward organizational objectives.

Clarifying purpose ensures that metrics are aligned with business priorities such as workforce productivity, retention, leadership effectiveness, or cost control. Without a clear purpose, organizations risk collecting data that is irrelevant, misleading, or unused. Purpose defines what should be measured, why it matters, and how results will inform action.

Employee privacy (A), data availability (B), and HR’s role in analysis (C) are important considerations, but they occur after the purpose is established. For example, once HR determines that a metric is needed to support a business goal, it can then assess feasibility, governance, roles, and safeguards.

SPHR exam content emphasizes that effective HR analytics begin with business questions, not data. Metrics must be intentional, actionable, and clearly tied to outcomes leadership cares about. Purpose-driven metrics strengthen HR’s credibility as a strategic partner and ensure analytics drive decisions rather than reporting activity.

References :

HRCI SPHR Exam Content Outline — Functional Area: Leadership and Strategy (HR metrics; analytics; decision support).

HRCI SPHR Study Guide — Selecting and aligning HR metrics with business objectives.

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