A business organisation can only thrive in a fierce competitive marketplace with an efficient and skilful team of employees. The entire credit of this vital talent hunting process goes to the HR department of your organisation. Over the span of the last decade, the HR field has evolved out through a rapid digital change.
Embracing various analytical and technological tools, the HR field has achieved various valuable insights and sustainable growth.
These analytics that measure the assessment and create HR strategies and improvement techniques are termed as HR metrics.
In this blog read about some of the most important HR metrics that would change your organisational behaviour.
Examples of HR metrics
- Recruitment And Retention
This field includes the top 3 HR metrics as: Time to Hire, Cost Per Hire and Quality of Hire.
Each of these metrics are useful in developing the asset of the company. It all starts from interviewing a candidate and continues until you add the valued employee to your organisation. It also includes the internal and external costs that were taken up by the company.
Each player in your organisation adds up value, so retention is also important. HR metrics of Employee satisfaction, turnover rates, and time since last promotions metrics are calculated.
- Organisational Revenue Management
The HR department is equally significant for playing a pivotal role in resource allocation and proper management.
The revenue to employee ratio metric justifies the decision of optimising the workforce management. This tool can easily identify the teams or projects generating higher revenue for the company- this in turn get you insights about employee performance and also need of training or updates.
While HR takes the right decision it impacts positively on the financial growth of the company.
- Training And Development
Again, it is about holding the business success with the proper retention of the valuable employees. Training and development is an example of KPI HR metrics that provides analysis on the team that require training and development on employee’s skills and knowledge.
Also, it allows HR to fulfil any gap that may generate a requirement of either promotion of a skilled employee or hiring a new one. Depending on the goal of the organisation, measurement of these metrics varies accordingly.
- Diversity And Inclusion
It is always essential to encourage innovative and creative ideas which can lead to diversified organisational growth. It has been found in studies that a diverse and inclusive work environment provides much better employee engagement, retention as well as productivity tool.
Though measuring can be a bit challenging as it involves the qualitative data of experiences and thoughts of the employees. Taking help of surveys, group talks or other qualitative methods can help in getting the inclusion index.
- HR compliance
Measurement of the HR compliance affirms that all the HR policies and practices or the organisation are in compliance with legal regulations. This can contribute to avoiding any legal liabilities which can pop-up from non-compliances.
While applying these metrics a HR needs to focus on the area where the compliance needs to be measured. It can be fields like employment laws, Data privacy regulations, workplace safety, compensation and benefits and security laws.
Conclusion
If you are struggling hard to measure the effectiveness of HR, Get Hire Technologies, Inc. has got you covered. We have been offering HR strategies that can empower your organisation. Optimise the HR department and drive your business to the peak of success.
