HR metrics are sometimes overlooked by small businesses who assume they are too complicated or too time-consuming to deal with.
However, HR metrics will help you uncover strengths and weaknesses within a company and give you management tools to understand which areas need improvement.
HR metrics help your businesses:
Get a pulse on the health and stability of your workforce
Understand if HR initiatives are working
Make informed HR decisions to recruit and retain the best staff
Spend HR dollars wiser
Set a foundation for long-term growth
Here are ten HR data points any business can track that will give strategic insights to HR trends, costs, efficiencies, productivity, and success.
1. Employee Retention Rate
Employee turnover is expensive. Track your employee retention rate to understand how your employee retention strategies are working, and to gauge company morale.
2. Cost of Employee Turnover
Knowing and tracking the cost of losing an employee will help you make more strategic decisions about benefits and retention activities.
3. Current and Historical Compensation Data
Track compensation data to ensure minimum wage and overtime pay compliance, and to understand employee growth within the company.
4. Training and Onboarding Expenses
Calculating your new employee training and onboarding expenses helps you understand your cost to hire, and are important for budgeting.
5. Recruiting Expenses
Calculating your recruiting expenses helps you understand your cost to hire, and are also important for budgeting.
6. Employee Happiness
Employee happiness data, such as employee surveys, are an important indicator of morale and company culture.
7. Absence Rate
Employee absence rate is a simple measurement that helps you understand how many days employees are missing, and can be an indicator of employee satisfaction.
8. Revenue Per Employee
Revenue per employee helps you uncover just how much each employees is actually earning for your company.
9. Benefit & Perks Expenses
Calculating your benefits and perks expenses helps you budget, and helps you understand how much your benefits package costs you per employee.
10. Time to Fill
Similar to recruiting and hiring expenses, knowing your time to fill a position will help you understand the true cost of employee turnover.
In the next section on how to track HR data, specific calculations will be discussed.