HR analytics is becoming an essential tool in the modern employment landscape. With accurate HR analytics metrics, companies can form an opinion about associated costs and the performance of the HR functions. You can thus understand what’s working and establish priorities to track your progress. Virtual hiring has become the best bet for organisational efficiency, especially during the COVID-19 pandemic.
HR metrics to study in 2021
Whether you’re a small, medium, or large organisation, your growth is directly dependent on the quality of your workforce and the infrastructure in place to generate maximum productivity. A comprehensive HR management software can offer deep HR analytics metrics to improve overall efficiency by reducing time spent and costs incurred for talent acquisition and management.
Here are 8 HR analytics metrics you should know:
- Employee engagement
Knowing how committed your employees are is essential for continued business efficiency. According to Gallup, only 36% of the workforce is engaged at work. Employee engagement directly impacts employee performance and thus is a crucial metric to analyse. HR can suggest programs, activities, and sessions help employees excel at their roles depending on employee engagement.
Using employee engagement surveys, you can gain an insight into the mood and opinions of employees. Surveys and enterprise networking events can help gauge how well employees respond to cultural changes over their career with a company.
Darwinbox offers tech-driven solutions like Pulse for employee surveys and Vibe for employee social networking that helps assess, evaluate, and improve employee engagement. Click here to know more about these features.
- Time to Hire
According to Yello, the average time to hire a recruit is between 3-4 weeks, even if candidates can expect an offer letter within the first week of their interview. The HR processes include documentation, multiple interview rounds, position mapping, background verification, onboarding, and training. Hence, the ‘time to hire’ HR analytics is key to determining the ideal recruitment strategy. Using HR management software like Darwinbox, companies can streamline HR functions to hire effortlessly, quickly, and efficiently.
Conventional hiring processes take too much time and are very demanding on the HR team. A shorter time to hire using HR management software can keep the candidates better engaged and reduce the load on the HR team with innovative hiring operations. The technology used for recruitment can also boost your organisation’s credibility among employees and third-party associates by creating a more inclusive culture. It also helps you avoid the lost productivity costs and recruiting costs that emerge from qualified candidates to fill key positions in the company. An example would be applicant screening, where you save time in the documentation process while shortlisting numerous applicants to get the best match. Not only are you making the right choice for your company, but creating a resource pool for recruitment partners and employees to keep up with the latest developments.
- Hiring costs
Hiring costs are an essential HR analytics metric for any agency or company. The cost per hire shows how much of the organisation’s resources are being spent hiring, retaining, or bidding farewell to employees. Using dedicated HR management software, companies can keep track of all the costs and hiring statistics to make the best HR decisions. A centralised system of HR functions can tell you if you’re spending more or less than intended. Thus, organisations are equipped with better workforce planning and budgeting in the long run.
Candidate sourcing and talent management can be expensive and require dedicated HR analytics to track every step along the way. To calculate hiring costs, you can divide the total cost of your recruitment process by the number of fresh recruits. Depending on the HR strategy, you must include staffing agencies, job postings, and recruiter’s time.
- Workforce demographics & diversity
In an increasingly interconnected setting, diversity and inclusion should be the focus of every enterprise. You need to start tracking the career progression of employees and the organisation’s stance on diversity. Additionally, knowing the demographics of your workforce can help your plan recruitment strategies for diverse representation in the future.
Among the many ways to track diversity and demographics, you can focus on gender, age, ethnicity, tenure, and experiences. Using an applicant tracking system, companies can make more informed decisions by shortlisting candidates based on various HR analytics. An intelligent AI-powered system will shortlist candidates that are best suited to your company’s requirements.
- Voluntary turnover rate
Sometimes an employee does not gel with the organisation’s culture or work policies. Thus, organisations lose out on core functions because a qualified employee leaves. By analysing the voluntary turnover rate, you will gain insightful HR analytics that helps you develop better ways to retain employees.
Using Darwinbox, powerful HR analytics software can help monitor and assess attrition, with key insights for employee retention. The user-friendly interface projects advanced reporting and HR analytics features for headcount, mood analytics, attrition, human resources planning, etc.
- Employee absence rate
The employee absence rate is a crucial HR analytics metric to detect early signs of a problem. A CareerBuilder research stated that 40% of employees who reported sick leaves did so for reasons other than an illness.
One can monitor employee absence-rate related issues by studying the growth in overall unforeseen absences over time. Using advanced time and attendance software, HR professionals can investigate and get to the bottom of employee absence issues and strategise the path to maximum employee engagement.
- Overtime expenses
In some organisations, frequent overtime can incur additional costs to the company, especially when the nature of work requires a higher payout than the task generates. Many employees work overtime to increase their earnings. But when overtime costs increases, the payroll expense skyrockets.
Studying this HR analytics metric is crucial to identifying areas where business processes can be improved and systems can be incorporated to manage overtime successfully. Part of the HR duty is to manage employees, and the payroll is a key aspect of organisational growth. Using payroll management software like Darwinbox, companies can determine whether adding more employees is more cost-effective than overtime expenses over time.
- Employee productivity
Measuring employee productivity is vital to the overall output and income of an organisation. Usually, team morale, pay scale, job responsibilities, and many other factors impact employee productivity. However, if your company is aware, you can deploy a strategy to measure and improve employee performance over time.
Darwinbox offers a dedicated performance management framework to address the employee productivity levels of any organisation. With multiple assessments, multi-stakeholder assessments, continuous feedback, and performance journals, the many benefits of a comprehensive digital HR solution can boost employee productivity. Various other aspects of the HR strategy that require dedicated HR analytics and technology have all the answers.
If you find these HR metrics useful to your organisational objectives, click here and explore the many features of Darwinbox HR management software.