Why hr metrics

It helps you get more clarity. Given that many organizations regard the human resource department as more operational than strategic, that means being proactive.

Incorporating HR data into business strategy requires something of a cultural shift. Exactly how the department gets its message out depends on the size of the employer. You have to come to the other function with more than thoughts, but something concrete.

The effort could be about improving sales performance or reducing turnover in IT. Also, be ready to take advantage of opportunities as they arise. For example, you might train people in new procedures and compare the outcome with the results of previously established practices, Courtois suggests. One thing is certain: Developing base lines can require a significant investment of time and effort. As an example, Sparkman talks about time-to-hire—how many days, weeks or months it takes to acquire top talent in a particular area.

Does it vary by month, quarter or season? How do university graduation dates affect the number? The impact of this must be measured against the average cost per hire and your own corporate culture and values. For example, linking the right type of call center employee directly to customer satisfaction is pretty straightforward.

Consistent —The data underlying the metric must be measured steadily over time. Accurate —Information should be precise, with few to no errors in recording it.

Efficient —The cost of collecting the data must be minimal. Mark Feffer is a freelance business writer based in Philadelphia. Was this article useful?

SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more. You may be trying to access this site from a secured browser on the server. Please enable scripts and reload this page. Introduction 1. Always Build a Business Case 4. Learn to Ask the Right Questions 7. Work Across the Organization 8. Embrace Measurement 9.

By Mark Feffer September 21, The costs and number of hires will both reflect a selected measurement period — such as monthly, or annually. Early turnover is also very expensive. This metric shows the efficiency of the organization as a whole. Check this Business Insider article to view how the top 12 tech companies in the world score on this metric. This model shows which employees are underperformers, valued specialists, emerging potentials, or top talents.

This metric is great for differentiating between, for example, wanted and unwanted turnover. In another article, we wrote about the qualitative and quantitative ways to measure employee performance. Metrics include Net Promoter Score, management by objectives, number of errors, degree feedback , forced ranking, etc.

This is the most concrete example of a performance measure, and it is especially relevant in professional service firms e. Relating this kind of performance to employee engagement or other input metrics makes for an interesting analysis.

This metric also relates to employee utilization rate , which refers to the amount of working time employee is spending on billable tasks. An engaged workforce is a productive workforce. People who like their job and who are proud of their company are generally more engaged, even if the work environment is challenging and pressure can be high. Engaged employees perform better and are more likely to perceive challenges as positive and interesting.

Do you have the competencies needed to remain relevant? Take the 5 minute assessment to find out! An organization with fully developed analytical capabilities should be able to have a smaller number of HR professionals do more. A similar metric to the previous one. Again, a set of highly developed analytics capabilities will enable HR to measure and predict the impact of HR policies. This will enable HR to be more efficient and reduce the number of business partners.

This metric shows how many workers leave the company in a given year. Preferably you would like to see low performers leave and high performers stay. This metric also provides HR business partners with a great amount of information about the departments and functions in which employees feel at home, and where in the organization they do not want to work.

Turnover is very useful data to know when shaping recruitment strategies. For a deep dive into how to calculate employee turnover , click the link! This is a more complex metric. According to the U. Bureau of Statistics, the average turnover rate in the U. Turnover is a measure of employee separation when the employee is replaced by a new hire. Attrition includes all separations, whether or not the position vacated is filled.

Anyone able is likely to walk away. It steals time from managers and wastes employee talent and energy. While some can survive, most want more from their team and management. Improved communication can improve work culture which reduces turnover. Training managers is paramount. Tax forms. Health plan information.

PTO structures. Company policies. New hires, especially, can feel overwhelmed when presented with seemingly endless paperwork. Employees complete workflows from the same HR dashboard. HR is still there when they need it. But the portal provides answers to most HR issues. People who run their lives with their smartphone prefer self-service. When employees have tools to solve HR problems, it de-stresses their jobs considerably. This is especially important for remote workers because they can't talk to HR in person.

Human Resources is the business function that manages all employee-related processes. Some companies outsource all or some Human Resources functions.

Depending on the size of the company, there may be a manager and team for all the HRM functions previously listed. For example, the Talent Acquisition manager oversees the hiring team. Most Human Resources processes are well-defined. This makes them well-suited to automation. How does an employee use an HRMS? The employee opens the company HR portal and are greeted by a branded dashboard.

If they are an hourly worker, they clock in for their shift. The portal gives the manager complete employee oversight. They have all employee information in a centralized location. It is updated in real time.

They can easily see which employees are clocked in and when they clocked in. GPS-enabled timekeeping lets them see where mobile or offsite employees are working. Managers approve shift changes and time off requests. They monitor and approve time cards. In the schedule module, managers create employee schedules. The scheduling tool has drag-and-drop. They drag employees into shifts to build schedules quickly. The hiring team tracks applications, evaluates candidates, posts jobs and manages interviews in the recruiting module.

Administrators handle new hire onboarding paperwork. The benefits management team handles new hire benefits enrollment, employee benefits changes and open enrollment. The training and development team manages training materials. HR software automates Human Resources processes. These processes include hiring, onboarding, timekeeping, payroll, performance management, training and development, benefits management, and employee scheduling.

Within each process are dozens or more sub-tasks. Good HR software helps employers manage their people in a way that will ensure individual success as well as the overall success of the company. What is integrated HR software? Each term refers to work tech that manages multiple core and non-core HR functions. Before cloud computing, companies purchased HR software and stored it on their company computers.

SaaS works like a subscription. The HR software vendor takes care of updates, data security and technical support. How does HR software help HR professionals? Reducing or eliminating the repetitive and mundane actions that every Human Resources employee is tasked with on a daily basis is the ultimate dream. When HR employees use an HRMS to automate workforce management, they can focus on high-value activities such as enhancing company culture and strengthening employee satisfaction. An HRMS can also help a company scale quicker by improving workplace efficiency.

How does HR software help employees? HR software can help employees do their jobs better by simplifying HR tasks. An HRMS timekeeping module accurately tracks hours. The clock reminds employees of missed punches so they can fix them before payday. Employees know they will be paid extra when they come in early or stay late. They know that overtime will be correctly calculated. They have confidence that their accruals are tracked accurately. If benefits eligibility depends on full-time status, an HRMS can validate hours requirements.

Payroll accountability brings peace of mind to employees. It takes the hassle out of shift trading. When a shift opens up, employees who want extra hours can request it. This eliminates the need for a manager to beg unwilling employees. Part-time employees can better juggle two jobs when their employers use HRMS scheduling.

Employees appreciate having access to the big picture. Real-time feedback is a powerful motivator. HRMS performance dashboards are objective. They remove the subjectivity inherent in manager evaluations. Team oversight is essential.

But it can be challenging even when all employees are in the same office. Managers with mobile, offsite, or remote employees have even greater challenges. An HRMS mobile app allows managers to monitor teams from a smartphone or tablet. The hours are tallied with each shift.

Managers have all timecards in a centralized location. HR software prevents missed punches and other timecard mistakes. Without a formal system, managers are at risk of scheduling employees who are on vacation. Managers can see all the requested dates together, side by side. Managers never have to remember which requests they have approved. The software finds eligible employees to cover open shifts. Managers can view schedules by team, week, or location.

Companies that want to maximize their human capital use advanced HR software to improve efficiency and productivity, control labor expenses, maintain compliance with workplace laws and drive employee engagement and loyalty.

When you use an onboarding system with a well-designed process, you will increase new hire engagement. This speeds up time-to-productivity. In addition, it lowers the risk of the employee quitting in the first year. Successful companies make sure managers do performance reviews often. Performance management software helps teams track performance over time. Tracking PTO, state and federal family leave, and other types of leave with spreadsheets is hard. Leave management software makes it a lot easier.

Employers can customize the software for their company PTO policies, state and federal laws, and union or government contracts. Automating this process saves time, improves accuracy and protects against compliance issues. A Learning Management System What is a learning management system? Companies use LMS for employee training. Educational institutions use LMS for student instruction. Modern LMS generally include self-directed training courses or modules.

Digital training is also called eLearning. Until the introduction of cloud computing, companies could purchase ready-made software or have custom LMS built for their organizations. How large is the learning management system market? The worldwide LMS market is growing rapidly. It is projected to increase from USD However, low motivation and engagement by organizations may restrain the market growth.

When your LMS integrates with other HR platforms, it streamlines onboarding, training and development, performance reviews and HR analytics. What are the advantages of integrating a learning management system with your HRMS?

These products often integrate with onboarding or performance management software. Time tracking is a foundational business process. To best use your workforce, you need to-the-minute employee Time and Attendance What is time and attendance? Time and attendance, in the HR world, is the process of tracking employee work hours.

How does time and attendance influence an organization? Modern cloud-based work tech automates time tracking. Your staff can clock in with a physical time clock or through an online web portal.

Mobile and remote employees can clock in with an internet-connected device wherever they are working. These systems align time tracking with overall HR management. What are the benefits of automated employee time tracking?

Choosing the right timekeeping system is a critical. Your system has a profound influence on culture, efficiency and productivity. Payroll depends on it. Project management depends on it. The process used to track time and attendance is integral to the employee experience.

An inaccurate or confusing method wreaks havoc at all levels.