HR or Human Resource metrics are measurable parameters used to determine the efficiency of operations in a company. These parameters provide an avenue to improve the efficiency of organizational functioning and work climate.
Some of the key metrics are dealt with below and their role in the improvement of processes, company growth and the achievement of the tenets of the company. Companies can choose to apply the metrics most suited their business operations.
This metric is influenced by a variety of factors so to achieve a more accurate view, customer satisfaction surveys serve as the most effective method of gathering this information. Making the surveys anonymous also helps to increase the accuracy of the information received since employees can freely express their views without fear or reservation.
2. Absence Rate
This metric helps companies determine the number of days employees are absent from work, which could possibly relate to job satisfaction. This metric provides a starting point towards stemming the root problem. It is also an indicator of the potential for turnover.
3. Cost Per Hire
This metric provides information regarding the actual cost to take on a new employee. It looks at money spent perhaps putting out advertisements for the available position, valuation of the time spent conducting interviews, and subsequent training costs.
4. Revenue Per Employee
Closely related to cost per hire, this parameter aids a company in determining the earnings of each employee for the benefit of the company. It helps them to gauge whether they have the right set of employees on board based on the degree to which the company benefits financially from the skill sets the individual employees bring to the table.
5. Benefit Cost
Examining this HR metric puts a figure on the cost to the company to provide benefit packages for each employee. Based on the total cost, companies may be able to look into or identify more cost effective but still beneficial ways to provide these benefits to their employees.
This simply gives a number figure for the amount of employees who demit office on a yearly basis. It gives an indication of the comfort levels of employees and could also indicate the success or effectiveness of the responsible manager or supervisor.
7. Turnover Costs
This involves all the costs associated with filling a new position when an employee leaves. The costs include recruitment efforts, downtime costs as a result of possible overtime to fill the responsibilities of the vacant slot, cost for new hire and also training.
This metric shows the length of time employees have worked with the company an also gives an indication of job satisfaction. Having many longstanding employees is a good indicator of the stability and mobility of the company as perceived by its employees.
9. Workers Comp
This metric has two facets to it. It looks at the comparative ratio between human resource expenses versus company expenses, and also the length of time taken by human resources department to fill the vacancy, from advertising the opening to hire.
10. Performance and potential
These metrics allow employers to gauge the performance of employees based on their talents, their level of performance in relation to what is required and also their specialities. It gives insight into the turnover, whether desired or not.
11. Billable hours per employee
This parameter serves as a measure of performance, which also speaks to how employees engage with clients. It is most commonly applicable to business settings where employees work on a commission or per hour basis.
12. Engagement rating
Engagement speaks to productivity and the greater the engagement rating, the greater the employee satisfaction as well. Despite the high-stress nature of a job, employees who remain engaged are highly productive.
13. Cost of Human Resources per employee
This parameter looks at what it costs the company in terms of human resources for each employee, as a dollar amount. This gives an indication of the cost efficiency of the HR department.
14. Ratio of Human Resource professionals to employees
A small HR personnel to employee ratio speaks to a cost-efficient HR department. If the company puts computerized systems in place to deal with auto-analytics, a small HR to employee ratio will suffice.
15. Ratio of Human Resource business partners per employee
This metric helps companies gauge efficiency based on the number of supporting partners they have to use to carry out HR functions. It gives an indication that using applicable management software would reduce the number of outside players in the process.
16. Profit per employee
This metric looks at the staff compliment and how it affects the bottom line of a company. A company would want to prevent under staffing which will decrease efficiency and also over staffing which is a revenue consumer. This is especially important in smaller companies with a lower profit margin in relation to larger ones.
17. Overtime cost
The overtime bill is a heavy company expense in uncontrolled cases. The yearly cost could be an indication that staffing is inadequate or that more efficient ways of fulfilling daily responsibilities need to be developed and implemented. Monitoring overtime costs on a monthly basis can help companies to keep a handle on this expense.
18. Cost of healthcare per employee
This metric helps companies to stay within the budget based on what they are willing to provide for the healthcare needs of their employees. This can be monitored over a period of months to analyze the number of employees who actually make use of the benefit for healthcare and what that costs the company.
This metric is quite important in helping to determine the strength and efficiency of the channels of communication within the organization. They can be spread across various mediums and as with job satisfaction, a tailored communication survey can be conducted to determine the effectiveness.
This has to do with whether new and exciting methods of engaging the particular market are being implemented and utilized. Innovation helps to propel businesses forward and not only affects clients but also the morale of the employees. This is an important metric to give insight into in the ever-changing marketplace.
21. Work Environment
This metric is wrapped up in culture as much as it is wrapped up in physical surroundings. The type of environment should suit the requirements of the job as well as the people who must work in it. Surveys are an ever useful tool in determining the level of employee satisfaction and perception of suitability in this area.
22. Collaboration and teamwork
Using weekly team meetings can assist companies to observe and gauge the way the employees within the company or specific department function together. The good old survey approach can also be used to get an honest apprisal of the situation.
23. Alignment of work with Company Vision
This metric is important to help employees feel as if they are an integral part of what the company wants to achieve and to see and feel how their role contributes to that. This parameter can help to keep employee engagement at a high level, by implementing strategies to help them incorporate that mission into the way they handle their responsibilities at work.
24. Timesheet/scheduling match
In addressing alignment with vision, it also relates to how much time employees have to achieve this. Useful software can help managers to easily determine if the amount of time worked is sufficient to cover the requirements.
25. Employee Wellness and Well-being
This has to do with the overall way in which employees are able to cater to their entire body of self-needs. Implementing wellness programs and a group gum, for example, can only serve to benefit the company and also its most valued resource, the employees.