With the rapidly growing technology, it is becoming more and more significant for the organizations to analyze and weigh the value of employees. Business intelligence lets an organization to use fact-based decision making in management and development of human resources. Here are certain measurement best practices and key properties of successful HR metrics that could be implemented in a large organization.
1. Recruiting Resources
Here are a few simple metrics that human resource managers need to follow in order to judge the recruiting effectiveness. A) The duration that the position is being vacant. B) Yearly performance score of the newly recruited when compared with the previous year. C) Manager satisfaction score of the newly recruited. D) Dollar impact E) Annual turnover rate.
2. Engaging Employees
It is highly required to balance engagement of employees with productivity for ensuring that managers are not abusing their workers to increase productivity. Managers must be promptly rewarded for increased production and increased employee engagement scores. Conduct a survey among the employees and the Metrics must include the percentage of workers willing to come to work and the percentage of employees who thinks that their reporting managers performs good management behaviors.
Retention is an extremely rated management issue The essential metrics for retention are performance turnover, preventable turnover, diversity turnover, the dollar impact of employee turnover, overall satisfaction of the managers’ rate with Human Resource manager’s retention efforts and the impact on productivity.
4. Perfect Employee Relations
The metrics that focus employee relations analyze whether poor performing workers are progressing in their performance or are sacked from the job in one year. The employee relations metrics focus on the percentage of workers, who say they have a bad manager, the annual turnover of poor performing managers and employees in one year of gaining a low rating and the number of employees who have improved after performance rating.
5. HR Costs
Though the total HR score is relatively low compared to all administrative and general expenses, it is good to have a metric for ensuring the money spent is being used for constant improvement in productivity.