Overtime is a fantastic indicator as it tells a lot about the willingness of the employees to stretch their timings for the business. You can use a variety of HR KPIs to create a balanced scorecard, which will give you a broader overview of how the department is faring against its business goals. HR KPIs should be specific, measurable, and actionable. KPIs not only provide an organization with a focus for strategic and operational improvement, but a way to compare achievements to similar organizations. Unfilled vacancies can be a killer to your overall productivity. The right procurement KPI is relevant to your business goals and simple to track. New leads (Lead flow) – you can call it also new opportunities. The main objective of this KPI is to find out which source gives the best candidates. Like other KPIs, HR KPIs measure specific areas of your business using quantifiable, specific metrics. Human resource managers have a lot of data that they have to track and stabalize. The formula is (Total lost workdays due to absence) / (Number of available workdays) = (Absenteeism rate). It's tricky to say what a good average is, but I personally have found myself most engaged in organizations where I've moved (internally) every 18 to 24 months on average. Simply modify the question to suit employees, and measure it in the same way as described here. You will be able to offer them incentives and facilities that will appeal to them and make them stay. HR KPIs are measurable values used by HR Teams to track and determine their progress on specific business objectives. Businesses should invest time and effort into reducing the time that is taken to fill a job role. Scalable for your organization. Of course, this is only half the battle. KPIs can and should track accuracy, speed, and efficiency in all departments, whether they deal with customers, manufacturing, billing, etc. Posted by Attiya | Jan 14, 2020 | Call Centers, Customer Support | 0 . What about the HR … Some of the KPIs that we have chosen in this article is all about the success of the business while ensuring that the employees perform at their peak. Top 5 Human Resources Key Performance Indicators KPI stands for Key Performance Indicators is a metric which is used to gauge the performance of a particular process, activity or individuals in the company to track the performance of the company. HR managers are using supportive data and quantifiable measurements—like KPIs and metrics—to back up their employee hiring and retention related decisions. Whilst not a precise science, the revenue per employee (total revenue / total employees) is a good indicator of how efficient your overall organization is. Here you go: It is a helpful metric because it helps you track the costs that you have spent on the employees for their development. Leave us your email, we wont spam. A low average duration indicates a poor job fit, either something wasn't right for the employee or the employer. You've almost certainly heard of NPS, or Net Promoter Score. Just because there are a lot of measurable metrics, it doesn’t mean that you have to keep track of metrics that don’t mean anything to your business’ objectives. It includes every cost- marketing, referral incentives, the time cost of recruiter, selecting CVs, subscription to recruitment apps, conducting interviews, etc. As a business person, your job is to invest in employees who will give you more revenue than what you are paying them for. As long as employees are the most valuable resource of the company, management should invest extra efforts in providing efficient human resource management. Use of them does not imply any affiliation with or endorsement by them. KPI stands for key performance indicator. Further, these KPIs help determine how well finance teams are performing. Leave us your email.We won't spam. An employee ‘A’ who is good at your company might not be a good fit for a different company. The Cascade Strategy Blog is a leading source of strategy articles, eBooks, toolkits & more to help plan & execute strategy. There is only one answer for all of this- your employees are not happy at the workplace. It will also increase Absenteeism. There are more variables that you can involve when measuring employee productivity as a KPI. Human resources Key Performance Indicators are designed to measure and evaluate all levels of employees who work within the Human Capital or Resource sector. We’ve assembled a collection of sample Key Performance Indicators for you to use as a starting point when building scorecards. By doing this regularly, you will be on top of your business growth. Revenue per employee — the most effective way for measuring the productivity and innovation output value of your workforce. The HR strategy follows the organizational strategy. Hiring is one of the most important activities that is performed by the management team as well as the HRs. The formula for Absenteeism = (total number of workdays lost)/(number of workdays available). Passionate about entrepreneurship, startups, marketing, and productivity. Every day Bernard actively engages his almost 2 million social media followers and shares content that reaches millions of readers. It could be because he/she is happy with the culture at your place while they might be wary of a different atmosphere where they have little freedom. Also, don’t concentrate on numbers that might be an aberration and not the norm. Organizations with a low revenue per employee rate don't tend to survive long. Culture is important for everyone in the organization. They are defined based on the HR outcomes that are useful to achieve business goals. If your top performers are leaving, either you're not paying enough, OR you have a major problem with your organizational culture. S – The KPI should be measurable in such a way that you can refer back to it and use it as a benchmark. Payroll is usually the biggest cost on the P&L. If employees feel as if they are overworked, even extra pay would not act as a source of motivation for them. A high rate of roles filled by referrals is not only indicative of a good culture but is also a very cost-effective way to hire low-risk talent. Why? When measuring this metric, find out which is the recruitment source for each of them. Let’s say that the role of the Digital Marketing Head is lying vacant for a long time. Once you keep measuring these KPIs, you will need to monitor its progress both at the department and organization level. HR KPIs is a must-have measure tool. It's also reflective of the effectiveness of your training programs and talent management capabilities. By sending it to the entire organization, you can make others understand the strategic importance of the department, and it will help show how they are performing against others. What does ‘Time to Fill’ as a KPI measure? What are the things they like about your company? By not following the traditional method of hiring, you will be able to reduce your expenses as the usual method takes up a lot of time, effort, and money. This KPI applies only to big companies when they are not sure about the number of candidates that they want to select from a pool of candidates. We guarantee you. You shouldn’t make your employees think as if they are doing a disservice by taking leaves because they are well within their rights to do so.