Metrics and analytics provide insights that lead to positive actions.
Metrics and analytics not only help make HR departments solve problems more easily, guarantee employees are satisfied, and morale is high, but it also ensures the company’s success.
Metrics and analytics in HR today are not just related to people but other processes like recruitment, retention, compensation, benefits and more.
Best HR Metrics
There are many metrics an HR department can use to make a company better. One key HR metric is an absence rate that tracks the percentage of employees that are absent in a given period. This metric helps keep absence rates low and stable, which is important for a successful business. Another, related metric, is the absence rate per manager.
For a company to be successful, absence rates should be low and stable throughout every department. Knowing the absence rate for each department, the human resources department can pinpoint problem areas within the company and intervene before the problem gets worse. Another great HR metric is overtime expense. People don’t mind working overtime now and again, but when it gets out of hand, absences are sure to follow. With this metric, HR can step in before it gets out of hand and stop any problems before they may arise. Some other great HR metrics are:
- Employee Productivity Index
- Training Expense per Employee
- Training Effectiveness Index
- Training Efficiency
- Employee Happiness
- Voluntary Turnover Rate
- Turnover Rates of Talent
- Retention Rate per Manager
Benefits of HR Analytics
HR analytics help organizations a great deal. One-way analytics make a company more successful is improved hiring decisions. With analytics, HR can make better choices based on historical data and easily derive the best candidate from that data. Another analytic that helps HR departments ensure a company is successful is good training. Every organization needs a training process and gaps in this process can lead to major problems and increase costs. HR analytics help organizations guarantee if employees are making full use of training opportunities.
Better insights are another HR analytic that helps companies become more successful. These insights about employees help shape strategies that boost morale, retention and engagement. Stable retention is another way HR analytics make a company great. It is important for a company to understand why employees leave and stay with the company. The HR department can use a variety of tools like employee satisfaction surveys, team assessments, exit interviews and stay interviews to determine the reasons employees enjoy their time with the company.
HR Metrics and Analytics
Metrics and analytics help an HR department guarantee a company is successful and employees are satisfied. There is a five-phase process of HR analytics. First is the justification of fundamental human capital investments. Second is measurement like with leadership accountability. The third phase is the effectiveness of key performance indicators. The fourth phase is value creation with genuine insights. The final phase is impact and the positive changes the analytics help create. HR metrics help quantify the cost and impact of management programs and HR processes. Metrics provide information to make the best decisions that add value to organizations. Metrics track activity and report numbers of common areas like employee engagement, retention and performance.
HR metrics and analytics benefit companies and allow them to be the most successful. Data is important to solve problems and intervene before small problems become larger. Data is important for companies because data leads to insights and insights lead to action. Positive action helps companies retain happier, more efficient employees. Without metrics and analytics, HR departments would not be as successful as they are today.
