Question

What HR metrics should the HR department of a mid-sized company be aggregating data for and then analyzing and reporting to management on a regular basis.

Answer 1

answer-

HR metrics are a vital way to quantify the cost and the impact of employee programs and HR processes and measure the success (or failure) of HR initiatives. They enable a mid sized company to track year-to year-trends and changes in these critical variables.

following are the HR metrics that should the HR department of a mid-sized company be aggregating data for and then analyzing and reporting to management on a regular basis-

a-Time to Productivity (Average numbers of days to satisfactory productivity)

Time to productivity is calculated by taking the number of days between the new employee's start date and the point at which he or she reaches satisfactory productivity and dividing it by the number of positions filled.

This metric is a vital indicator of how well your on boarding program is performing. Also, outcomes can be an indication of the quality of your recruitment process and the caliber of the applicants you're attracting.

b-Turnover Rate (Rate at which employees are leaving the organization)

Turnover rate is calculated by taking the number of departures during a specified period (a year, quarter, or month) and dividing it by the average number of employees during the same period, and then multiplying by 100.

When focused on a target group (e.g., high performers, Millennials, low performers, or critical positions), this metric provides insights into the effectiveness of your performance management, development, or culture initiatives.

c-Cost Per Hire (Average cost incurred with a new hire)

Cost per hire is calculated by taking the cost (marketing spend, recruiter fees, or relocation costs) and dividing it by the number of new hires.

Too high of an external cost could be an indicator that you need to invest in internal recruiting resources such as training or technology, hire an extra recruiter, or reevaluate the mediums you've selected to market your positions.

d-Acceptance Rate (Percentage of candidates who receive offers and accept)

Acceptance rates are calculated by dividing the total number of candidate acceptances by the number of offers extended, and then multiplying by 100.

This number will let you know if you need to improve your candidate experience, benefit packages, or the competitiveness of your offers.

e-Average Performance Rating (The average performance rating for a selected group of employees)

The average performance rating is calculated by dividing the sum total of all performance ratings by the number of employees who received a rating, and then multiplying by 100. I would suggest taking this number and comparing it against a larger distribution.

Tracking this metric will let you know if your performance management programs are working effectively and if any teams are falling behind the curve.

f-Employee Engagement (Degree to which employees are engaged with and committed to the strategy and objectives of their organization)

Calculating engagement is tricky. Most organizations invest in a third-party resource that typically includes an extensive survey -- it's worth it. A high level of engagement is a critical trait found in high-performing organizations.

g-Workers' Compensation Claims (Measure of workplace safety)

Analyzing your workers' compensation claims (amount and cause) will ensure you provide and maintain a safe working environment for your employees.

if these HR metrics are provided to the management then company can increase employee effectiveness and productivity on regular basis.