8 HR Metrics Every Business Needs to Track

HR analytics tools offer heaps of benefits to an organization, but only if they are used properly. The data from such tools can provide detailed insights about processes and strategies, which can then be used to improve them further.

But a business will not benefit from HR analytics tools, just by implementing it into their workforce. Certain metrics play an essential role in determining whether their HR solution was a success or not. Here are eight metrics every business needs to track with analytics.

Ideal Channels for Recruiting

When sourcing qualified candidates for a position, finding the right channels is crucial, which includes ad campaigns to various job boards. Your hiring managers should be able to identify which channels are worth spending time on and which ones aren’t. The aim should be to find channels that prove to be most beneficial for finding an ideal candidate, instead of the one that offers the largest candidate pool.

Cost Per Hire

It is important to consider the recruitment budget when sourcing candidates for a position. If your business is overlooking the cost, you might end up exhausting the budget too early. If you see signs of disproportionate cost per hire, you might need to adjust your recruitment strategies.

Employee Retention Rate

Employee retention plays a crucial role in the success of a business, especially your top performers. Because finding an ideal replacement for such employees is tough, and you’ll also need to go through training the new candidate up to speed with the business process. Hence it’s crucial to track the retention rate of your business.

Further, tracking the retention rate of individual managers can also be beneficial. With the help of this metric, you should be able to measure the leadership capabilities of your managers, which also serves as a great medium to evaluate employees accurately.

Training Program Impact

Since the aim of training programs for employees, new and existing ones, is to fill possible skill gaps, your business must track its progress. Keeping a time frame of thirty days after the training program finishes should be ideal.

This allows you to identify if your training strategies are effective or something needs to be changed. Track the changes from day one and compare that to day thirty. Identify the differences in performance on both occasions.

Change in Productivity

A productive workforce is necessary for the success of any business. When introducing new tools into your business, it is crucial to identify the effects of new digital tools on the productivity of your employees. This data obtained from tracking these metrics can help improve strategies in future, i.e., during your digital transformation.

Overall Employee Experience

Every business requires engaging employees, which can only be possible if you offer them an exceptional work experience. Numerous factors can affect how an employee might be feeling about working in the organization or their current state in the company.

A negative one often leads to departure, which can disrupt the workflow and increase the overall cost, as the business would need an ideal replacement. But if you can identify the factors that might affect employee experience, scenarios like this can be avoided.

Similarly, identifying the positive ones are equally important, as they help you understand if your strategies have been effective or not. Hence tracking employee experience metrics is crucial.

Employee Benefits Access

Often, the low rate of adoption for employee benefits stems from not being aware of their existence. Employee benefits are crucial to maintaining positive employee experience in an organization. When employees are happy, they are motivated to come to work every day. This leads to higher engagement which in turn leads the business to its goals.

But most employees are unaware of the benefits, either due to lack of communication, or improper access. Tracking this metric will allow your business to create an effective employee benefits communication policy.

Employee Recognition

A useful HR management software comes with an employee recognition program that allows businesses to recognize and reward the hard work of their employees. It’s crucial to understand how often employees are recognized, as it helps maintain employee engagement and satisfaction in an organization. Identify the frequency with surveys and polls.

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