People Analytics Metrics that every HR Leaders Must Track
This is the start of a new year yet organizations are confident about their people analytics capabilities. It's mainly because organizations don't have a People Analytics strategy or don't know what to measure. Robust analytics require modern software and tools that can help you measure crucial people analytics metrics. The most important part, however, is having the right kind of metrics that you can track and use to refine your people analytics strategy.
Here are the top 10 People analytics metrics that every HR must know.
1. Employee engagement
A productive workforce is an actively engaged workforce. Even though the work environment is tough and the pressure intense, those who love their job and are passionate about the company they work for tend to be more engaged. Additionally, team engagement is a key performance indicator for team leaders. One of the most common ways to measure this people analytics metric is to track an employee's net promoter score.
2. Performance and productivity
Retraining underperforming individuals is always difficult and costly. Therefore, tracking employee productivity by department, team, and seniority level is essential. Team-by-team performance management and evaluation provides insight into how each group is influenced by the office environment and how their individual activities affect the workplace. You can analyze the productivity of employees in a cohort or team to determine if workloads should be reassigned, and use this information to guide recruiting and decision-making as well.
3. Achievement of goals
It is extremely important to know whether workers are meeting or exceeding targets and objectives. If the number is high, so much the better! If not, managers need to dig deeper to see what may be holding employees back from performing and do what is necessary to ensure that all employees hit their targets and achieve their goals. This people analytics metric will help executives work with HR to establish a strategy that restores performance levels. This metric is calculated by dividing the number of performance goals met or exceeded by the total number of company goals.
4. Employee ROI
It is one of the most tangible examples of a performance metric and applies particularly to professional services businesses such as consulting firms. Examining this type of performance against employee engagement or any other input metric can offer some truly fascinating results. Comparing this metric across departments and managers/partners can also provide a number of compelling insights that can transform the way your business is run.
5. Effects of employee churn on business
Most organizations monitor employee turnover in one way or another. We all know that losing a high performing employee can be costly, but have you considered the exact cost to your business or organization? You can track this people analytics metric by first finding the percentage by which the person exceeded the average and then comparing that number to their revenue. This can give you an idea of the value of an interpreter within your organization, which can be useful for future recruitment and retention efforts.
6. Learning effectiveness
It's good to have your employees go through a training program, but learning alone isn't always enough. It is normal to forget things over time. Therefore, it makes sense to assess skills immediately after a learning session and at different intervals, for example one month and three months later. If there is a downward trend in skill levels, you can consider programs like a refresher course to inspire your employees to stay on top. This is a useful metric for tracking staff development spending so you can make more informed choices about how to develop your skills once they've been hired. However, training expenses should not be reserved for new employees only. Today, a growing number of employees are demanding accelerated career growth and continuous learning opportunities, even in their current roles. Often the return or return on training costs far exceeds the initial expense. Therefore, it is essential to constantly monitor these parameters and make strategic decisions accordingly.
7. Hairing
We all know how challenging it is to train a new employee to full capacity only to have them leave soon after. If you're seeing employee turnover patterns in their first year on the job, there may be a problem with your hiring or onboarding process. Tracking turnover at different stages of employment is essential for evaluating the effectiveness of your people analytics dashboard, and you should be able to do this quickly using your HR software. Moreover hiring cost is the average monetary cost or expense associated with acquiring a new hire. This HR metric can be used both as a budgeting tool and as a measure of recruiting effectiveness. The calculation formula is: all external costs + all internal costs/total number. hires over a given period.
8. Absenteeism
This people analytics metric measures the average absence rate of the entire workforce as a proportion of the total number of days worked. This is a crucial metric as it demonstrates an individual's motivation and commitment to their job and to the company in general.
9. Retention rates
Retaining key and top performing resources is what every organization wants. While ensuring low friction between functions is critical, it is more important for functions critical to running the business. impact. Using this, you can look at relevant subgroups to see where your real attrition challenges lie and where better retention planning might solve the problem.
10. HRMS efficacy
This measurement is a bit more complicated. For example, the effectiveness of learning and development software is measured by the number of active users, the average time spent on the platform, the duration of sessions, the total time spent on the system per user and per month, screen flow and learning reminder. These people analytics metrics allow HR to identify what is working and what is not working for the workforce. When analytics in HR became popular, most metrics had to be recorded through manual processes. Since then, the field of people analytics has come a long way, and it's now possible to almost fully automate the way you track, measure, and analyze people analytics metrics. Organizations just need a robust, data-driven HR system to manage their reporting and analytics.