Insights from HR data are just as valuable to your company as data from your other business units.
After all, employees have the potential to make or break a business.
That’s why it’s vital to pay attention to your HR data. If your organization has a robust end-to-end HR analytics and reporting software, like Agile HR Analytics, you should have access to a wealth of HR data.
But with the range of data available, are there specific key HR metrics you should focus on?
Here are the top three workforce metrics your HR analytics software should track.
Attracting new talent costs your organization money. A longer recruitment process costs more money. It also results in lower productivity, which may mean lower revenue.
Your recruitment metrics should calculate:
Cost per hire. This is the total amount your organization spends on recruiting a new employee.
Time to fill and time to hire. Time to fill measures the period from when you first begin the recruitment process to when a new hire accepts an offer. Time to hire is the period between when a new hire applies for a job and accepts an offer.
Acceptance rate. This tells you how many offers your organization put forward before someone accepted a job. If you struggle to fill positions, it can mean something about your company, roles or recruitment process is not appealing to candidates.
New hire turnover. If several new hires resign after a short period, you may need to investigate why new hire turnover is so high and what steps you can take to retain employees.
Most companies spend a lot of money on hiring and training employees. So you obviously want this investment in human capital to deliver a motivated and productive workforce.
One way to gauge employee productivity is to analyze:
Revenue per employee (RPE). Revenue per employee is the total annual revenue divided by the number of full-time employees, giving you the average revenue earned per employee. If RPE is high, it could indicate a productive team. If RPE is low, it could mean your workforce is unproductive or your headcount is too high.
Employee engagement. Disengaged employees are inclined to be poor performers. But don’t give up on these staff. Intuitive people analytics software can identify high- and low-performing employees and determine which ones could improve given the right conditions.
3. Employee retention
A revolving door of staff is disruptive to your business. It’s important to keep track of employee retention rates because a high turnover rate can be a symptom of a bigger problem in your organization.
If you’re struggling to retain staff, delve into your HR analytics to find out:
The voluntary attrition rate. That way, you can find out if the number of employees who are choosing to leave is trending up or down.
Patterns in employee attrition. This will help you discover if attrition rates are higher among particular demographics or business units.
Why employees are leaving. It’s important you discover whether staff are leaving due to lack of growth opportunities, a poor workplace culture or other reasons, so you can fix the problem.
With Agile HR Analytics, you can dive deep into your HR metrics.
That will tell you a lot about your employees’ performance and experience with the organization. It can also highlight what steps your HR team can take to create a better employee experience and increase staff loyalty.
Looking for deeper insights from your HR analytics? Agile HR Analytics can help. To find out more, email firstname.lastname@example.org or fill in this contact form.