Do you know how your HR department measures how effective you run a business in Ireland or what HR metrics it uses?
Or, do you know how frequently your HR takes “inventory”? As a way to ensure the business is running smoothly?
HR metrics are vital tools to uncover areas in your business that needs improvement and how to meet the standards of your company and employees. Additionally, it offers valuable data to make a good decision for your business and different departments.
There are countless HR metrics to measure such as
- Payroll
- Payments
- Benefit packages
- Employee engagement, retention, and training
All the ones listed above can give your business valuable information about how your HR department and business operations are working.
In this article, we’ll focus on some other HR metrics that might not come to mind at first. Of course, what works for one company may not work for yours. These are merely suggestions to help you get started and dig below the “go to” HR metrics.
1. Fulfilment
This metric measures the ratio of happy or satisfied employees to the total number of employees. This metric is the hardest to measure since there are a variety of factors that affect it. Asking the employees to fill out satisfaction surveys is the most effective way of obtaining this information.
If the employees can fill out the surveys anonymously, it will increase the precision. The employees can fill it out truthfully without the threat of being fired.
2. Nonattendance Rate
This metric measures the number of days an employee is not in attendance at work per year.
This metric helps to determine how often an employee decided not to come into work due to illness, vacation, or other reasons. It can be related to job satisfaction as well. This metric can be an underlying factor for employee turnover.
3. Expenses Per New Employee
This metric calculates the total cost to hire a new employee. This includes the recruitment process, valued time spent interviewing qualified candidates, selecting the top candidates, and then training the new hires.
4. Profits Per Worker
This metric helps the company calculate the profits each employee earns and benefits for the company. It can help assess if they have the most suitable set of employees. This is determined by how much the company profits from the valuable skills the employee brings to the company.
5. Benefit Package Cost
This metric totals the amount of money spent on employee benefit packages.
This includes:
- Unfair Termination
- Unemployment Payments
- Job Wellness and Safety
- Fairness
- Maternity Compensation
- Adoptive and Paternal Compensation and Time Off
- Fair Working Hours
Companies take a look at these costs and determine what can be cut or determine what could be most cost effective and still beneficial.
6. Hiring and Firing Rate
The turnover costs are the hiring and firing expenses. It includes the cost of recruiting and hiring a new employee and paying staff to cover the work of the missing position.
7. Employment Duration
Employment duration or tenure metric indicates how long the employee has worked with the company. Companies with many long-lasting employees is a good sign of employee happiness and satisfaction.
8. Workers Payout
This metric takes two metrics and adds them together. It takes the ratio of human resources to company expenditures and how long it takes HR to hire a new person.
9. Employee Performance Reviews
This metric is more of an assessment than anything. It lets employers review their employees’ performance and if there are any talent gaps.
10. Productivity and Engagement
Engaged employees are productive employees, which helps boost satisfaction. Even if the job is stressful or requires employees to juggle a lot at once, if they’re engaged they’ll be productive.
11. After Hours Expenses
When employees have to work more than their normal hours, it costs the company money to pay them. This is also a sign of other things going wrong in the company. It could mean that there aren’t enough skilled employees meeting the company needs. Tracking overtime costs every quarter or more frequently can help lower and manage this expense.
12. Company Interaction
This covers everything from memos to sending out important emails in a timely manner. It’s vital to a company’s power and effectiveness. A survey on this can quickly determine how communication to better streamline communication.
We hope these 12 HR metrics will help you determine how you want to measure your company’s business operations.
Again, this isn’t an extensive list; however, if you want more information please contact one of our sales team today.
