High HR Metrics For The Trendy HR Skilled
Modern HR professional
In recent years the role of the HR department has taken on a new strategic dimension, which represents a significant change compared to previous administrative roots and perceptions. A clear indicator of the popularity of the strategic HR department is the increased focus on the use of HR metrics, which is sure to become an important part of the company’s overall business strategy.
Why are HR metrics needed?
For reasons similar to most metrics: to measure employee data and get an idea of where the business is going in the future. If a company wants to attract new talent and maximize the skills of its existing workforce, it needs strong, comprehensive talent management metrics.
What are HR metrics?
Also known as talent metrics, these help a company track its performance on key aspects of its HR data. They look at the human capital of the organization and evaluate the contribution and success of human resource initiatives to the overall success of the organization.
Do companies measure HR metrics?
Oracle’s 2019 research found that most companies are in favor of using HR metrics. Consider the following numbers from the survey of 1,510 respondents in 23 countries:
- 51% of HR respondents said they could do predictive or prescriptive analysis, compared to just 37% in finance, which indicates a higher data processing maturity
- 89% of respondents agreed that the metrics could help plan the future of the workforce
- 94% said the metrics provide real-time insights into their employees’ career development goals
What are the key areas for HR metrics?
The following are the main domains and associated talent metrics that can be used:
recruitment
- The most influential procurement channel
A company typically uses more than one channel to get leads for potential employees such as job boards, email campaigns, and social media. Because of this, it’s important to know which channels work well and which don’t. The aim is to identify the channel that makes the greatest contribution to the effectiveness of the hiring, and not just indicates the highest number of candidates. Parameters to consider are candidates per channel, performance quality for each channel, and rate of wear after adjustment. - Conversion of candidates who interact with the employer brand
Candidates interact with a company through recruiting marketing emails, employer branding blogs, and other messaging modes and types. The focus here is on seeing how many such people are applying for a job.
Learn and develop
- Training costs per employee
This is important for tracking the cost of people development and making better investments in people development. All-day training courses often provide inadequate, expensive learning, and continuous learning experiences are often more effective. - Effectiveness of training
This is a difficult metric for talent management because it is difficult to measure what someone has learned. It helps to set goals for the training and to analyze whether the candidate has achieved these goals after the training is completed. Another option is to look at baseline productivity and see how training affects it over the long term.
revenue
- Performance and potential
This is a 9-box grid that depicts a candidate’s performance and potential on three levels. The grid reveals underperformers, valued specialists, up-and-coming potentials and top talents. It helps to differentiate between desired and undesired employee turnover. - Engagement rating
Engagement is directly related to productivity and is an important factor. Even in a stressful and pressurized work environment, a person is engaged when they are proud of the job and the company. Stress becomes a challenge to overcome, and commitment is also important in assessing the team manager’s success.
Absenteeism
- Absence rate
The ratio of days of absence to full-time employment (FTE) is the unscheduled absence rate, an important metric for measuring absenteeism. It examines the percentage of absent employees over a period of time and also displays a long-term benchmark. The level may vary on a monthly basis, but in the long run the rate should be stable and low. If the absenteeism rate increases, it could indicate a poor work environment, high stress level, or an epidemic. - Absence rate per manager
Similar to the above, the ratio of the days of absence in a particular team or department to the total FTEs of this team or department is considered. This is a great way to identify problem areas in the company. For example, if certain departments have an ongoing problem with high absenteeism rates, they may need targeted action.
storage
- Voluntary turnover rate
Sales are usually a final step, and employees don’t return to the company often. Given that people are leaving managers, not jobs, the voluntary turnover rate is an important indicator of problem areas within the company. - Retention rate per manager
The purpose of this is to identify managers who are doing an excellent job of contacting and interacting with their team members as opposed to those who do not do such a good job. The latter could get the support they need to enable better performance.
