Identifying the relevant metrics from the HR analytics is critical to driving success from the analytic information! The metrics offer valuable input for strategic decision-making. While HR managers may attribute success or failure of their decision making directly to the HR analytics tool they utilize, it is also dependent on what metrics they choose to track.
So, how can the HR department contribute its two cents towards the success of the organization? Well, the answer is, by measuring the right pieces of information.
Following is a list of crucial metrics you should measure to help the business move forward in its strategic direction.
- Average time per hire shows the efficiency of the hiring process. It also provides an insight of the troubles to fill up certain types of job openings.
- Cost incurred per hire that helps in measuring the cost that the company has incurred in hiring new employees.
- Early turnover is considered as a very important metric that helps in determining hiring success in a company. It is an expensive metric that takes 6-12 months before employees have properly been settled and reach their optimum productivity level.
- Time till promotion helps you determine why your high potential leaves the organization.
- Revenue per employee helps in determining the efficiency of the organization. It helps to calculate the quality of hired employees.
- Performance and potential metric determines the potential and performance of each employee.
- Determine the number of employees who are keen to come to work.
- Calculate the number of employees who are fully content with the management. It can be surveyed based on the following topics.
- Engagement and learning arranged by supervisors
- Recognition and rewards awarded by supervisors or senior management
- Knowing the fact that the work they are doing makes a lot of difference
Compensation and benefits:
- Determine the effects of compensation on employee’s performance.
- Calculate employee’s satisfaction from compensation. Thereafter, determine the percentage of employees who are satisfied with their compensation.
- Calculate the association between satisfaction from compensation and job productivity.
- Determine the percentage of top-performing employees who quit the organization because of compensation.
The above-mentioned metrics provide you a deeper picture on how productive is your organization and what are the factors that contribute towards the productivity. You can identify the factors that contribute to high productivity levels, adjust recruitment or employee engagement strategies to incorporate them and maximize the productivity of the organization. By determining all these metrics, the organization can move on the success path!