In the past, important HR decisions were made based on arbitrary variables and managers relied on their previous experience to guide their actions. This is very different from other departments, like finance and marketing, who make decisions based on data and a variety of KPIs. With the introduction of People Analytics, this is no longer the case!
With these HR metrics, managers can use data to better understand people and approach these tough choices in a systematic way. With that said, it can be difficult to determine which metrics truly matter! That is why we sat down with 11 HR Professionals and asked them what KPIs they utilize throughout their day to day operations. Keep reading to learn how you can better utilize People Analytics to improve your company’s HR department!
Employee Turnover Rate
Analyzing the turnover rate for your company is one of the most important and impactful statistics that you can track as an HR professional. Looking in depth at those numbers can truly give you good insight into what’s going on in the office. The numbers will highlight any sort of management issues, policy issues or behavioral issues that may have caused someone to leave. Diving into these numbers will also prompt any changes or disciplinary actions that need to be taken as a result of an employee exit.
Max Hansen, Y Scouts
Employee to HR Ratio
Taking a thorough look at the employee to HR ratio in the office is an important metric to constantly be tracking. It is crucial to make sure that there is enough help available to staff from the HR department. If staff are stretched thin or struggling to carry their workload, that in turn will negatively impact employees– causing the HR department to falter on their collective duties. Always having a full staff on deck is vital to the function of the office.
The Rate that Applicants Accept Your Company Offer
Tracking the acceptance rate of potential hires that accept your company’s offer is telling of how your company is doing in terms of employee benefits. The number of candidates who accept your offer will give you insight on what benefits employees find fair and what benefits are lacking in comparison to other companies in your same industry. If HR finds that candidates are consistently turning down your offer, there needs to be some changes made in order to up that statistic.
Megan Chiamos, 365 Cannabis
As COVID-19 has set in, annual surveys and employee feedback have been critical to running a successful organization. Looking at employee satisfaction and engagement will serve to better understand absences, churn and performance. The Society for Human Resource Management found that engagement and social impact programs are important to employee morale (50%), Loyalty (41%), Retention (29%), and Recruitment of top employees (25%) and productivity (12%).
Tyler Butler, 11Eleven Consulting
HR needs to be aware of engagement, especially during these challenging times. A quick “pulse survey” can help HR keep up to date on how people are feeling. Many platforms are out there, such as TINYpulse to track these metrics.
Linda Dausend, FlashPoint Leadership
Measuring Culture Fit
You always hear talk about employees being the “right fit.” When a new hire doesn’t fit into the culture of the company, this could cause problems with existing employees and morale. There are certain things that you can find out from data that are trainable, while other talents are not. Data, if used in the right context, can be very helpful in finding candidates and promoting from within an organization.
Joann McCarty, Capital Lumber
Feedback on Proposed and Current Plans
The main metrics to consider are the sentiments and feedback of the incumbent workforce. In providing many opportunities for employees to provide their sentiments, feedback, and suggestions on proposed and current plans, organizations can make better decisions, minimize issues that might have otherwise been overlooked, and get a more committed workforce. All other HR and organizational outcomes are a result of or will be improved by these leading indicators and employee input.
Kelsie McClendon, Donor Network of Arizona
Net Promoter Score
Above all else, I think it’s a company’s Net Promoter score – the likelihood that an employee would recommend your company to someone else as a place to work – that acts as a telling HR metric. As far as I’m concerned, no other metric is as important. That said, I’m also a big fan of Gallup’s Q12 employee engagement survey.
Dave Rook, JP Griffin Group
The Relationship Between Processes and Results
Metrics that demonstrate the relationship between processes and results that matter to the business. These are not outputs or simple counts, but relationships between investments and ROI. SHRM has some great resources here, but measurement is a discipline and it starts with defining processes then measuring and so on. It is not an instant leap in progression but requires some capacity building and learning to be managed and implemented effectively.
L. Melanie Chase, Change Solutions
Trace Company Impact Back to Organizational Outcomes
I believe in anchoring to organizational outcomes with significant bottom-line impact. That means things like employee retention, customer satisfaction, productivity and company profitability. This might feel lofty, but when you start with one of those as the end goal and map the ways that an initiative impacts one (or more) of those metrics, you also verify that the business case for your initiative actually exists. And, if I can’t create that map to show impact on one of those metrics, it’s time to ask myself whether this is the right thing to do.
Christina Zurek, ITA Group
The HR metrics and people analytics that really matter is morale first and foremost. Who wants to work for a company where they are miserable? Millennial retention especially depends highly on this factor.
Rufus and Jenny Triplett, RJ Diversity Consultants
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