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Making decisions in the HR department is no easy job; whether you like to go with your gut, or have decided to shift towards the more precise way of decision-making, that is data-based decision-making. With the amount of data that’s available on the internet, it’s much easier to make decisions using a data-based format; not to mention, the decisions are more accurate as well.
Even with all that, it’s not easy to dig out useful information from the digital stratosphere. It’s quite hard to track people’s metrics, even with a data-based format. This is why a majority of companies turn to global compliance solutions that will help their HR and management teams align, prioritize, and simplify.
In this article, we’ll list 5 HR Metrics that’ll make workforce management a little easier for you; before that, here’s a little on why tracking people’s metrics is difficult.
WHY IS IT DIFFICULT TO TRACK PEOPLE’S METRICS?
The answer to this question is pretty straight-forward. Managing people isn’t as easy as managing products; they’re nothing alike. Managing products is a lot easier while managing people is a difficult task. Employee satisfaction and productivity aren’t easily quantified, and knowing what to measure is a task many companies struggle at. Now there are three reasons why companies don’t succeed with HR analytics, and they are:
- They don’t have an integrated data system; storing data in multiple places makes it harder to dig out the data together to form a useful report. For that, there exist many HR software platforms that allow you to store all your data in a single database, making it much easier to track your data.
The payment method doesn’t matter here, platforms need a best-of-breed model to make great strides in data integration, allowing you to have immediate access to the key metrics required. Regardless of the model you choose in the end, just make sure that you have the functionality to access key data at ease.
- Not enough data is gathered: Something that’s important to note is that companies oftentimes don’t gather the amount of data required, leading to no analysis in the future. This can make things a lot more difficult, especially if your HRIS is outdated and/or you’re operating with spreadsheets. So the best thing to do here is to update your workforce management software beforehand.
- They have no idea about what they need to measure; something that most companies often lack, they’re not aware of what’s best to measure, leading to inaccurate decisions. That’s what we’ll be discussing now, 5 HR Metrics for your HR Management System.
5 HR METRICS FOR BETTER WORKFORCE MANAGEMENT:
The first part is to have the Best HR software platform in place; once that’s secure, you can move on to the next step: gather and track data to better the effectiveness of your workforce management strategy. Don’t be hasty, take your time to put your key performance together; basing it on your business objectives, organizational goals, and the information necessary to the seniors of your company.
Keep in mind that your goal is to track data that can prove useful in making better decisions for the individuals, and departments of the company. With that out of the way, here are 5 HR metrics that’ll make things a lot easier for your workforce:
Before we move forward with this particular metric, you need to make sure that you’re aware of what productivity means for your company. For some, it’s the hours completed, for some it’s the number of sales closed; you get the point. You’ll need to monitor employee productivity with a keen eye and track performance on a gradual basis.
Something that’s to be measure alongside productivity; employee satisfaction allows you to be aware of how engaged your workforce is. You can rate employee satisfaction with the use of performance reviews; however, there are tools available like performance assessments, teambuilding initiatives, and incentives to allow you to see which of your employees are satisfied with their occupations. Mobile alerts and email reminders can be useful tools to get feedback when it’s required.
You can track turnover rates that’ll be helpful, but something that’s even better is voluntary turnover, referring to people who leave your company by their own choice; allowing you to know whether your employees are satisfied with the roles they’ve been designated with. Keep the numbers in check, but make sure you’re considering exit survey conductions, allowing you to ask employees about their reason for quitting.
Make sure your training program is at its utmost efficiency; measure your training expenses per employee, and form a checklist of training goals set for each of your employees. Productivity overtime must be monitored to be aware of the increase as more trainees reach their goals; compare that against your training costs to find out if your training program is working for your company.
- Retention Rate Per Manager:
Retention is something that every company keeps track of, but what’s important is to be able to break down retention rates per manager/department; make sure you’re able to do that. This’ll allow you to be aware of your company’s weak points, and how to remove them in your organizational structure. This’ll allow you to see if your managers are benefiting from additional management training.
With that out of the way, that’s just about it for this article. But before we end this topic, there’s one thing you must be aware of. Regardless of the Metrics, you implement, the first step is to secure the best HR management software; make sure you have the tools needed to create a strong workforce management strategy.
With that said, we hope you find this article useful!