What Are the Most Important HR Metrics?
For a modern HR director, few things are more important than employee metrics. When you're responsible for dozens, hundreds, or even thousands of workers, you need hard data to understand your workforce. Focusing on key HR metrics, utilizing software to collect and evaluate those metrics in real-time, is what will lead to greater performance and efficiency.
Which HR metrics will be most important to your success? These are a few that we suggest you focus on.
Seven Key HR Metrics to Track
1. Cost per hire
What are your hiring processes costing, per employee? This metric incorporates time-to-hire long with the cost variable, allowing you to quickly gauge the efficiency of your hiring processes in terms of currency.
2. Early turnover rates
What percentage of new hires leave the company within a year? The number should be as close to zero as possible. This is a vital metric to track because high turnover rates suggest major structural issues with employee culture or onboarding.
3. Revenue per employee
This HR metric is good for getting a handle on the overall organization's level of efficiency. Obviously, some employees (sales) will be more profitable than others (post-sale support) but this is great as a general benchmark of success.
4. Engagement rating
Engagement is morale - how happy are your workers, and how much do they enjoy their jobs? You should be conducting frequent polls and surveys to keep a close eye. Low levels of engagement will translate to sloppy work, low productivity, and other major issues.
5. Absence rates per manager
Absentee rates are important to track, but it's particularly important to look at them on a per-department or per-manager basis. If you see large discrepancies in absenteeism across the company, that points directly at problem areas to solve.
6. Productivity index
There's little use in tracking hours at the office since work is now often split between the office, home, and other locations. It's better to track workers' overall productivity instead. What matters is how much actual work is done, not where it's done.
7. Training effectiveness
Set key goals for training, and test to ensure all workers are meeting those goals. Know early on if your training is effective to prevent long-term issues.
Buddy Brings You Real-Time HR Feedback
Buddy gives you the tools necessary to track numerous HR metrics, in real-time, with deep and insightful analytics that help improve employee morale, retention, and overall productivity. Click here to request a free demo!