The lifeblood of organizations are people and understanding the gains and losses to the workforce is vital to understanding the health of that lifeblood. The headcount net balance looks at the starting headcount and adds in new hires and subtracts terminations. There are many different ways to augment this: by Gender, by function within the organization, by specific job, etc. You can also consider movements (e.g., transfers, promotions, demotions, etc.). The headcount net balance is best displayed as a waterfall chart, but it\'s power to gauge net growth or shrink in an organization is unparalleled.
The most obvious answer would be the amount of qualified applicants, so I’m gonna share one that is a little less obvious. That is the level of engagement recruiters and hiring managers have with qualified applicants after they apply. Best practice is within one to three business days based on the level of difficulty of filling that role. Creating a internal process of tracking how quickly candidates are initially contacted by the recruiter, how quickly hiring managers are engaging in interviewing these candidates, as well as how often how soon the chosen candidate is made an offer. This will start to uncover the efficiency or deficiency in certain areas where great potential employees are often lost in the process.
One of the most important metrics in HR is Turnover. Turnover is not just about reporting on the number of people leaving, it is about understanding why and where turnover occurs, which will give you the opportunity to create a targeted actionable plan. Deep diving into your turnover numbers can provide you with important insight on correlations between employees who are leaving and what are the driving factors for that, whether it is related to position, management, compensation, tenure, performance, work-life balance, etc. After identifying these risk factors, we can predict who might be at a high risk of leaving in the future and create risk groups that can be monitored more closely by leadership. By understanding the host of factors that influence turnover we can seize on the opportunities and engage employees through actionable and targeted plans, and this makes turnover a must-have data point for HR teams.
The last few years have profoundly impacted individuals, communities, and organizations. Given the pandemic, social unrest, and other global issues, companies, in particular, have broadened workplace benefits to address the amplified needs and desires of their people — who represent diverse populations. Intentional companies make efforts to offer a holistic benefits package that covers various areas that employees value. The past few years have seen an uptick in employee benefits and wellness offerings such as flexible/unlimited paid time off, access to mental health resources, and financial support. As we look to the future, leaders must assess the use and impact of these expanded resources on employee retention and wellbeing. Evaluating benefit usage will accentuate those resources most in-demand and shed light on those resources that may be under-utilized due to communication, service delivery, seasonal necessity, or another reason.
There is much to be said about preventing and preempting problems before they become issues. The Great Resignation brought to light how unhappy our teammates were in various aspects of their work life. Today’s organizations recognizes that as we ask individuals to bring their “true selves” to work, we must do the work to create an environment that reflects and supports such statements—and with doing the work comes evaluating how we are performing in this area and asking difficult questions such as how are we doing as an organization to support our employees through trauma/traumatic events? How well are we doing when it comes to creating space for employees to be their true selves? Asking difficult questions is how we garner better feedback and demonstrate our interests in doing better—owning our feedback and engaging our employees to generate better solutions is how we can demonstrate our commitment to doing better.
One of the most important analytics that HR should be measuring and tracking is employee engagement. Employee engagement is a measure of how connected and invested employees are in their work and their company. Companies should of course use a measure that is best suited to their business, but measuring employee engagement can provide deep insights into whether employees feel meaningfully connected to their work and company. Additionally, a high level of engagement has been linked with better performance outcomes, so tracking this metric can help you identify issues early on and take corrective action.
Given current inflation, even with modest wage growth employees\' real purchasing power is eroding and many will see switching companies as the only path to meaningful income growth. With a competitive job market, backfilling them is likely to be much more expensive and may create compensation disparities that drive even more tenured employees to resign. Employers can see this by looking at one metric: the YOY percent change in median base pay, when comparing new hires (<1 yr tenure) against tenured employees (>1 yr). If new hires are above the inflation rate, and tenured employees are below, you have fertile grounds for this negative spiral to begin. Use this insight to open leaders\' eyes, smartly use targeted compensation adjustments, and other levers to improve your retention before this cycle starts.
The employee loyalty. In times of shifting priorities, companies must offer significant benefits to retain and attract talents. It is because of these shifting priorities that it is even easier to lose talents to a competitor that can make more attractive offers. Therefore, it is recommended to cultivate employees loyalty. The first step to measuring it is to establish a standard and compare competitors to evaluate how your company performs. Since most companies use the % internal promoters - % internal detractors, this is a great place to start. Good indicators and questions that can help you apply this method are: Trust- What can we do to make you continue to trust our company? Satisfaction - How likely are you to build a long term career here? Respect - What is your opinion about our brand? By asking your customers such questions, you will be able to get real numbers and start measuring customer loyalty and an easier and more effective way.
One of the most critical metrics that HRs should measure and track is revenue per employee. Revenue per employee = Total revenue/ Total no. of employees. This indicator demonstrates the effectiveness of the company as a whole. The "revenue per employee statistic" serves as a benchmark for the effectiveness of recruited staff. It gives a rough figure of how much an organization makes per employee. Therefore, the HR analytics list should start with revenue per employee.
There are many metrics that HR should track and measure, but a significant one is Employee Satisfaction. Counting the number of employees who would recommend your company as an excellent place to work and monitoring the amount who wouldn't helps indicate overall employee and company-wide satisfaction.
Track employee development goals. This might mean checking in with your staff more regularly to ensure that they’re content with their progress. With an accurate view of your team’s personal career goals, you’ll organically draw closer together as a company. You’ll achieve more because employees will feel part of something bigger than their current role at the company.
The worker's turnover rate tells a lot about a company's employee culture. A high turnover shows that a company is not good at maintaining their employees and that employees are not satisfied with the job. A low turnover shows a good employee culture and satisfaction within an organization. With this metric, you will view your organization's employees' culture and know where to improve on employee management.
While there are a variety of analytics that HR should be tracking, one of the most important is employee engagement. Employee engagement refers to how committed and involved employees are in their work. When employees are engaged, they are more likely to be productive, creative, and loyal to their company. As a result, measuring and tracking employee engagement should be a top priority for HR. There are a number of ways to measure employee engagement, but some of the most common methods include surveys and pulse surveys. By regularly assessing employee engagement levels, HR can identify issues early on and take steps to improve employee satisfaction and retention. In today's competitive business landscape, tracking employee engagement is essential for any organization that wants to thrive.
There are many useful metrics you can use to track and measure your HR performance, many of the best to start with all relate to recruitment. Metrics such as time to hire, acceptance rate, cost per hire, new hire turnover, headcount, and time to productivity are all prime examples of deliverables that can provide insights into your business. The key to making the most out of the data gathered is to drive actionable change from its insights. If you are just measuring to measure, your efforts will be unfocused and squandered.
Your HR team should have one top priority on their mind at all times, and that's employee engagement. The bottom line is that if your team isn't being productive, you probably have lack of engagement to blame. Be sure to consistently monitor your team's tell-tale behaviors, and even consider implementing anonymous employee surveys to get honest, unbiased answers about how they feel about their current roles, your company culture, or anything else that could impact their overall job satisfaction.
Gauge employee engagement by analyzing the absenteeism rate of each team. As an HR, ensure you identify the causes that drive employees to incur absences and understand the reasons behind them. They may become unmotivated due to personal struggles or simply because they find the work environment toxic for their mental health. Attend to these issues and take necessary measures to help them get back on track and reignite their passion for working. Moreover, prioritizing the absenteeism rate allows employers to see what motivates employees to report to work. Observe the behavior or work patterns of those with good attendance records and try to get their insights to see if their practices are applicable to inspire their peers who are always out from work.
In the information age it can be overwhelming sometimes trying to decide which data is valuable and which isn't. In a sense all data is valuable, it just depends on what perspective you're looking at it from. For HR, the most important analytic should be employee retention. Retaining talent that you have hired, trained, and developed is paramount it a company's longterm success. Looking at all the factors that effect your ability to retain talent will only benefit you. If you are struggling to retain talent you can get a better understanding as to why, and work to correct those weaknesses. The adverse applies to when you are retaining talent, learn what is working and build upon that. Talent retention is key because it will save a lot of time and money in training new employees. The more you can retain, the longer the company stands to benefit. Please let me know if you have any questions!
The transparency and accessibility needed to strengthen employee trust form the basis for the most critical analytics. The descriptive and diagnostic analysis undertaken by HR is used to evaluate the most important KPIs in HR analytics. The most vital analytics that HR should be measuring and tracking to assess the progress levels of the employees is the productivity or revenue per employee. For any organization to grow, the role of the employee is detrimental. Since HR spends a lot of time recruiting and finding the right hire, the same results should flourish. It is vital to find the key that helps your employees live up to their potential in encouraging a work culture. Instead of treating them as a resource, HR can make a difference by upskilling them and creating them more valuable to the organization.
Head of Customer Acquisition at MitoQ
Answered 4 years ago
At the end of the day, you can admire every member of your team. But if they aren't being productive, then you have to go to the data to see where the problem lies. Too many employees may be coming in to work late, or perhaps they are missing important deadlines. Or, worse yet, they may be redoing certain tasks because they were incorrect the first time. If you begin to see a decline in productivity, be sure to address it right away, so that you can quickly make pivots to correct the situation as soon as possible.
As employee retention becomes more of a focal point, analytics that measure onboarding and development are critical. Traditionally, onboarding was limited to paperwork, some basic training modules and company structure charts, but over the past few years, this process has become more employee centric, as its effectiveness has been shown to drive retention. Having analytics in place that track employee comprehension, engagement, and seamlessness in the onboarding experience, have become critical. In addition, items that concentrate on development, such as training and succession planning, have also increased in their importance, as they too, serve as one of the main factors in retention. As HR departments continue to update their roles, applying analytics to the onboarding and development process will be every bit as important as maintaining paperwork and compliance.