Hr metrics most often are left out by an organisation as they feel that these Human resource performance metrics tend to be very complicated to handle. However these hr metrics are only but beneficial for an organisation.
Why are HR metrics helpful?
This is because the key hr metrics help an organisation to discover their strengths and the weak points that exist in an organisation. It helps to understand the areas that need improvement and the area that can be capitalised upon.
Most of the hr metric formulas comprise of understanding the costs that are involved while hiring new workers. These formulas are indispensable for helping in developing business strategies for an organisation as well. They can help a company to attain their goals and their visions in a stipulated time frame.
Mentioned below are the top 19 types of hr metrics that need to be used by an organisation to attain efficiency and efficacy:
- The most commonly implemented HR metric is the cost per hire. This tool helps in analysing the costs that are incurred to the organisation when a new recruit is hired.
- The revenue per worker: this formula is also like the cost per hire that has been defined above, this allows you to analyse the amount each worker is earning for the organisation.
- The absence metric: this formula is the simplest metric, it helps in analysis of the days attended and the days missed by the workers. Thus helping to gauge the satisfaction levels of the workers.
- Benefit cost: it provides an insight about the benefit cost that the organisation provides for its workers.
- Satisfaction: this is by far one of the most difficult metric as if helps in gauging the satisfaction levels of the workers in the organisation. As this feeling is abstract in nature conducting surveys are the best method that can be used for gathering data.
- Turnover: this helps in understanding about the number of workers that leave the organisation annually.
- Tenure: indicates the time spent averagely by a worker in an organisation.
- Turn over costs: it indicates the money that an organisation looses when a worker quits. It is based upon the cost of vacancy, the cost of training and the cost of hiring new recruits.
- Workers comp: this metric stress on the incidents of the workers comp that have taken place within a stipulated time period or can be used for analysing the cost of the employee for each worker comp.
- Time to fill metric: this metric is essentially helpful for analysing the efficiency levels of the department along with the total time required by the HR department to fill up a vacancy.
- Revenue per workers: this formula is used for analysis of the efficiency levels of the whole organisation. It is indicative of the quality of the workers that have been hired in the organisation.
- The 9 grid box: this formula is used for measurement of the performance along with potential of the worker on an individual level. It helps in determining the workers who are extremely valued, the ones who do not perform too well and the possible potentials.
- Billable hours per worker: this is the finest example to explain the concept of measuring the performance. Thus is related directly to engagement of the worker in the organisation. This metric can be used as the bench mark for analysing other departments as well.
- Engagement rating: a workforce that is engaged at all times has the highest levels of productivity. It is one of the most essential aspects of HR. Workers who are engaged tend to have a better performance and do not view stress as a hindrance to their success.
- Cost of HR per employee: this helps in understanding the cost of the total efficiency mostly in dollars.
- Ratio of HR professionals to employees: this helps in analysing the efficiency of the cost. Hence a good organisation will have a lower count of professional that take on more tasks.
- Ratio of HR business partners per employee: this metric is very essential for development of HR related policies as it helps the department to become efficient and at the same time lower the stakeholders and partners of the organisation.
- HR software effectiveness: this is one of the most complex HR metric formulas. It helps in gauging the effectiveness of the HR software that has been implemented by the organisation.
It is based on the quantity of the users that are active; the time spent using the software, the screen flow, the retention of the software and the length of each session. Thereby allowing the organisation to understand what is beneficial for the workers.
- Absence percentage: this is one of the best metrics to measure the levels of dissatisfaction amongst the workers. It helps in analysing how these frequent days of absence can be dealt with. As absence in the long run can be detrimental to the success of the organisation.
There are several hr metrics examples that can be implemented to bring growth in an organisation. These systems allow you to analyse several metrics as and when the need arises and they require a minimum amount of investment. It is one of the most essential tools for an organisation to be successful in all departments.