Managing people has been a challenging task for decades, but the current trend in use of data and analytics in all the fields is changing the way it evolves. HR is no exception to this. Incorporating the metrics into your organization to track the performance of the people and their productivity is highly related with the revenue of an organization and it is the s. The Society for Human Resource Management says only thirty seven percent of HR leaders are using the data to solve the people management related issues.
One advantage is that, if we use data in this HR, we can nail the competitive advantage of staying ahead in the industry. We all might have heard of the metrics, without knowing what it really means and how it is made.
1) Turnover Rate
Out of the all the metrics, no one can deny the fact that turnover take the very first metrics in an organization. This is not to be confused with the major metrics called ‘attrition rate’. Many uses it interchangeably, but turnaround is the number of employees leaving your organization in a certain period of time. Let’s see how turnover is being calculated.
(Total termination / Average employee count) * 100
2) Time To Fill
Calculating the efficiency of your recruitment unveils many facts about the organization such as external reputation, internal branding, and standard of the hire. Time-to-fill metric shows us the time period to fill a position.
3) Revenue Per Employee
Sum of all roles’ time to fill / total number of openings filled
Use this metric to see whether the organization is understaffed or overstaffed based on the revenue that the organization is generating.
Annual revenue / Employee count
4) HR to Employee Ratio
Depending on the size of the organization, human resource staff are appointed. With this metric, you can measure whether your HR team is understaffed or overstaffed. Lower the ratio means that your HR team is understaffed.
(HR team count / Overall employee count) *100
5) Career path ratio
We know that most of the employees have the grip of getting the promotion in the office. This metric shows us the internal movement on promotions and transfers of various functionalities and specialists.
Total promotions / (total transfers + total promotions)
6) Employee Net Promoter Score
NPS is used to measure the customer satisfaction, similarly eNPS is used to measure the overall engagement of the employees. On a scale of 1 – 10, 1 being the best and 10 being the worst we can fit in all the responses and interpret at what range the scatters are more.
% Promoter – % detractors
From the above collected metrics, self-analyze your organization and see where you can leverage your organization through the latest human resource management solutions, that comprises end-to-end process include employment visa, employee travel, salary processing, employee devices, employee insurance, employee self-service, employee record management, WPS file generation, Document expiry alerts and even face recognition alerts.