Is the Human Resources department in your company completely in-sync with the desires and goals of your business? Regardless of the answer to that question, you should know that HR metrics are really important when it comes to making sure your employees are satisfied and everything is going according to the plan. That is why today, we are going to provide you with the top 5 HR metrics that you should be focusing on.
Employee satisfaction is crucial when it comes to the success of a business.
5 HR Metrics You Should Consider
1. Employee Satisfaction
As we’ve already mentioned, one of the jobs of the HR department is to make sure employees are satisfied with their job and the work environment. Employee satisfaction is crucial when it comes to the success of a business. Remember that it might be a bit challenging to implement this metric. After all, there are so many employees and situations to consider. However, if you want to focus on high performance and employee engagement, it is worth investing some time and effort into this. For instance, you can take engagement surveys that measure employee satisfaction. According to the results, you will know whether your company keeps their employees satisfied or you have to find ways to increase satisfaction.
2. Cost Per Hire
Do you know how much money your company spends whenever you hire someone new? Consider the recruiting process and the training that you have to provide that person with. This metric will help you figure out if what you get is worth the money you invest.
3. Quality of Hire
Even more important than the cost of hiring someone is looking at the employee’s performance and analyzing whether or not it is what you need. Again, this is not easy to determine. However, once you get some insight into how well your recruiting process works, you can find ways to improve it. In order to calculate this metric, you can look at the average job performance of the people you just hired. Also, consider how many of the new people reached a satisfactory productivity within a certain time frame, how much recognition these people receive, and how many people are still working in your company one year later.
4. Employee Relations
Another highly relevant metric, this one looks at the relation between your employees. It might happen that the relation between managers and the employees on their team is not really productive for the company. When certain employees perform poorly, or on the contrary, quickly adapt to the job, it is useful to analyze how much of this was the manager’s responsibility. You could take employee surveys where you ask about the quality of the manager-employee relation. Or you can survey managers to inquire about employee performance.
5. Turnover Costs
Apart from focusing on the costs of hiring someone, you should also be aware of the costs of someone leaving. Consider the fact that you will have to spend additional money to train someone else. Your productivity might also decrease as a consequence. Take a look at how much your company spends on job advertising, what are the effects of turnover on productivity, and how it affects employee morale.
These 5 useful HR metrics are important to remember if you want your business to work like a well-oiled machine. Consider them as soon as possible!
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