As a result of the recent global pandemic, many companies are investing in HR technology that allows them to monitor key metrics related to their employees. HR and talent acquisition leaders need to use this data to drive meaningful change, gain insight and drive decision-making.
Leadership’s 7 key HR metrics
- Diversity in the workforce
The diversity data that HR collects can be shared with leadership to demonstrate how the organization is working toward increasing diversity in the workplace. To attract and engage a more diverse workforce, HR can recommend sourcing changes to recruiters. A career community with a high proportion of diverse talent often asks sources to reach out to passive candidates with different backgrounds and post job listings there.
- The ratio of pay equity to comparison pay
Tracking pay equity ensures that employees of all backgrounds receive equal pay. Regularly auditing pay equity can help your CEO and CFO adjust salaries accordingly.
- Employee Net Promoter Score (NPS)
ENPSAs can help employers track and gradually improve employee satisfaction, but qualitative feedback is also crucial to demonstrate that executives are making decisions workers agree with. After the interview process, you will likely send prospects NPS surveys and use their feedback to improve your customer service. The results of these surveys can also be used to inform your recruitment messaging (e.g., share high worker satisfaction ratings on your careers site).
- Performance of the employees
Various tools allow employees to rate their satisfaction with their roles and the organization. The data can be used by HR departments to decide whether certain employees deserve raises or promotions. When a low-performer is absenteeism- or time-to-productivity-driven, business leaders may let him go due to poor performance ratings.
- Employee revenue
Several factors must be taken into account when determining a company’s revenue per employee, including turnover rates, industries, and business sizes. There can be a shortage of qualified candidates for certain positions when turnover rates are high (or there is the potential for it).
- Engagement of the employees
Engaging employees who are unlikely to contribute to the company’s culture can be achieved by tracking employee engagement. Many hiring managers ask TAs to look for candidates who have led culture-themed initiatives in the past.
- Rate of retention
HR can gain insight into worker attrition by analyzing the attrition rate by business unit and location. The HR department can then provide leadership with suggestions for improving retention. Human Resources may recommend more defined career paths for employees in each team if eNPS surveys show employees are dissatisfied with internal mobility.
