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Thick
Barbara Gruba,
editor of Laba
As many as 80% of the over 600 companies participating in the HR Analytics study conducted by HRrebels believe that HR analytics is the future of HR organization. 60% of the respondents to this study are already making decisions based on collected data. Is your company not yet among them? Start using HR metrics to improve its functioning!
Why is it worth introducing HR metrics?
HR metrics are measures used to track and evaluate both the efficiency and effectiveness of a company’s human resource management practices. Metrics cover a wide range of areas from recruitment to employee satisfaction to employee performance list of georgia cell phone numbers and provide valuable information that helps optimize HR processes and increase overall company performance.
What are the main benefits of HR metrics? HR metrics are an invaluable tool because they provide objective data that helps you:
cost optimization
strategic talent management
strategic planning
making informed decisions.
Even the simplest indicators to implement improve our work. So make sure they become standard practice in your company now!
4 Basic HR Indicators Worth Implementing in Your Company
If you have no experience with HR metrics in your company, what's the easiest way to start? Below are 4 metrics that are worth starting your HR analytics adventure with.
Why are these indicators basic? First of all, because all the data needed to calculate them are well known to us, because we already have them in HR data. This definitely streamlines the process of their implementation. These indicators are:
#1. Headcount
Headcount is an easy-to-calculate indicator that shows the number of employees currently or in a specific time period (month, quarter, year). Based on this, we can see how our company is growing. Within this indicator, using the basic data we have about employees, we can also calculate:
number of FTEs – a unit representing one full-time employee. Calculating FTE allows us to expand on the basic indicator, which is headcount, and obtain more in-depth and more accurate data
overall length of service
work experience in our company
age and gender – these aspects can be counted in terms of diversity. Depending on the type of our industry, we can compare ourselves to other companies or to ourselves over the years
Headcount is a basis for other indicators, and from the obtained statistics we can deduce what actions we need to take in connection with the number and characteristics of our employees, e.g. changing the method and intensity of recruitment.
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#2. Absenteeism
High absenteeism affects the functioning of the company and reorganizes work, which is why absence control is so crucial. It is important for:
1. HR department employees. With data on how it is shaped in individual months, as well as areas of the company, they can determine what costs the company incurs;
2. department managers who, knowing the tendency of employees to be absent, e.g. due to illness, can better plan the work of other team members and the organisation of the project.
The level of absenteeism in our company should also be compared to the absenteeism levels in the industry or in Poland based on the ZUS sickness absence report .
#3. Rotation
As many as half of the participants in the HR Excellence Forum survey consider turnover to be the most or very complicated challenge facing HR employees. Checking the level of turnover, similarly to absenteeism, allows us to determine whether it does not generate too high costs. Unfortunately, every turnover generates some cost: we lose a qualified employee, we have to reopen recruitment, then introduce a new employee, etc.
Thanks to the cyclical analysis of the turnover of specific departments in the company, we will also know whether the work in any department is not disrupted.
#4. Salaries
The remuneration indicator plays a key role in the analysis of a company's results. It takes into account the costs of salaries, bonuses and premiums, which directly affect the efficiency and motivation of employees.
By comparing data on salaries in our company to the minimum wage and the average salary in the economy, we can assess the competitiveness and attractiveness of the employment offer in our company.
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Nowadays, HR departments are expanding their areas of operation . Their new functions inspire making well-considered decisions in the company, as well as achieving goals through conscious use of collected data. Introducing the 4 basic HR indicators mentioned in the above article is the first step to developing data analytics in your company!
You already know the basic HR metrics. But how do you implement them effectively? Here's a quick guide on how to get started with basic metrics, which ones to start with, and how to check which ones your company needs the most.
