Just as other business functions, human resource management could also do with some help through analytics in improving the process and making it more efficient and effective. In this post, we will take a look at some of the key HR metrics in recruitment and performance management that you should be tracking.
Recruitment
Cost Per Hire: This is one of the most important recruitment metrics to track. Hiring costs are substantial, and if they are not watched, they can spiral out of control and it will not be worth it to hire the employee in the first place.
Therefore, keeping track of the cost the organization incurs in hiring an employee will tell you how much you are spending on each hire and where, if possible, can you cut costs.
Along with cost per hire, you can also track the time it takes to hire a candidate to get a better handle on hiring.
Internal/External Hire Ratio: This is particularly useful metric to track if you are an organization that puts emphasis on promoting candidates instead of hiring managers from outside. This ratio will tell you the number of employees who were promoted in-house and how many came from outside.
Performance Management
Employee Satisfaction: Though this is a highly qualitative measure, it can also be quantified to give senior management a better understanding of the satisfaction employees have with their job roles and responsibilities.
Time Per Appraisal: The appraisal process is a complex one involving multiple stakeholders with different roles, and as such, it can take a lot of time sometimes. By coordinating properly, a lot of time can be saved. By measuring the time it takes for an appraisal to go from start to finish, senior managers will have a better idea of the process.
The above are only a few of the HR metrics that you need to track. An online HR software solution will come complete with an analytics module that helps with the above and more.
