The most effective human resources teams know how to collect and interpret data to improve hiring and management processes. After a few roller-coaster years for hiring and management (the Great Resignation, remote or in-person work battles, and quiet quitting, to name a few), the importance of metrics couldn’t be higher.
What are HR Metrics?
Human resources metrics are data points that help companies measure how the effectiveness of their initiatives. They can also measure the productivity of their teams.
By tracking what is working well and what needs improvement and noticing trends, you can clearly understand how to make your human resources efforts most effective.
Decide what metrics matter to you.
You need to determine what you want to track to reap the benefits of metrics. What makes sense to your company? To help you decide, consider these tips:
- Align with your strategy
- Collect feedback from higher-ups
Important HR Metrics to Consider
Here are several important metrics to consider tracking to help your human resources department be most effective and contribute to the company’s overall success.
Service and Software Metrics
- Cost of HR per Employee: The total amount your organization spends on HR functions divided by the total number of employees.
- The ratio of HR Professionals to Employees: The number of employees in your organization per HR professional.
- ROI of HR Software: The difference between how much the software costs and how much money it generates or saves your organization.
- Cost per Hire: The average cost of hiring a new employee. Add up internal and external hiring costs, then divide that total by the number of employees you hired in a given period.
- New-Hire Turnover: The number of new hires who leave within a set period (for example, first year of employment).
- Time to Hire: The average number of days between when a job is posted and when a candidate accepts your offer.
- Time to Productivity: New hires must adjust to their organization and start working at total productivity.
Engagement & Retention Metrics
- Employee Satisfaction: The number of employees who would recommend your company as an excellent workplace versus those who wouldn’t.
- Talent Turnover Rate: The turnover rate among your organization’s high-performing and high-potential employees.
- Retention Rate: The opposite of your turnover rate in that you divide the number of employees who remained in your organization over a given period by the number of total employees.
- Voluntary Turnover Rate: The turnover rate for only those employees who leave your organization voluntarily.
Training & Development Metrics
- Time to Completion: The average time it takes for an employee to complete a training program.
- Training Effectiveness: There are several methods for measuring training effectiveness, like running tests or assessments.
Remember, Track What Makes Sense for Your Company
Measuring data can feel productive, but without interpreting and utilizing it sensibly, it doesn’t matter. To make the most of your metrics, only track what makes the most sense for your company and its goals.
You can begin by tracking a few metrics, and as you get confident in your abilities to interpret them, add on other metrics. Showing upper management productive insight is an effective way to get them to buy into your efforts.
Hire the Best for Your Team
If you need help finding top talent to bring onto your team, contact Expert Staffing.