The pandemic crisis has put human resources professionals in a fix. The transition from an office environment to work from home is now a concrete reality.

Most workers will not be returning to work until 2021, thus leaves the HR professionals to rethink their strategies. At a recent survey conducted by BambooHR, it was seen that almost one-third of the executives expect to receive regular updates from their HR teams. This is where HR metrics play a significant part in the industry. The survey also mentions that almost 80 percent of professionals in the human resources industry find HR metrics somewhat useful, useful, and extremely useful.

If you’re still wondering what is HR metrics, here’s a simple answer to your question. HR metrics are certain factors that help organizations gauge or determine the effectiveness of multiple HR responsibilities. For instance, hiring, onboarding, training, employee retention, return over investment, cost-per-hire, or benefits participation rate.

Employers are eager to measure the roadblocks to gain visibility into where their organization is headed. Besides human resources professionals, even the talent managers have started using talent management metrics to determine inflow, throughflow, and outflow of talents within the organization.

You will find multiple factors that need a metric to keep track of, from the headcount to the benefits participation, the organization needs to know where they’re headed and what will determine the success of their organization.

However, every report strategy depends on the total size of the organization, the company’s priorities, or the human resources team.

We will further discuss major HR metrics that have been proven successful for organizations.

Value of the employee and performance

Cost per employee: This can be calculated by taking the total amount of the revenue generated divided by the total number of employees in the organization.

Performance of the employee: Self-assessments, assessment of the manager, peer reviews, or perhaps a combination of all three factors could give you an overall picture of the performance of the employee.

Performance of the organization: An overall comparison between how their employees feel engaged versus their performance can be determined.

Potential of the employee: With the help of the nine-box matrix (the employee’s performance is measured based upon the combination of both their current performance and the potential performance).

Engagement and retention of employees

Turnover rate: This can be calculated by taking the total number of employees who left the organization within a certain period divided by the number of total employees in the organization multiple by 100. This gives you the turnover rate percentage.

Retention rate: Take the total number of employees who stayed in the company for the whole time divided by the number of total employees at the start of the time then multiple by 100.

Employee satisfaction: Calculate by taking the total number of employees who recommended your company versus the number of employees who didn’t recommend using the Employee Net Promoter Score (eNPS).

It has become a challenge for talent managers and human resources professionals to retain employees in organizations if they’re not happy.

Training and development of employees

The total training expenses per employee: You can get the results by calculating the total cost the company is charging for training and programs divided by the number of total employees.

Training completion rate: Calculate this by taking the total number of employees who completed the training divided by the number of employees in an organization multiplied by 100.

Effectiveness of the training: You can easily calculate the training effectiveness by using methods like running assessments to get the pass or fail results.

Time tracking

Rate of absence: The rate of absence of an employee is determined by calculating the average number of days the employee has taken leave of absence within a given duration (this does not include the paid time off (PTO).

Overtime hours spent: This can be calculated by taking note of the average hours an employee spends in a given period.

Recruitment

Total headcount: Determining the total number of employees working within the organization or the department.

Time to hire: Calculate the number of days from when the job was posted and when the candidate accepted the offer.

Rate of acceptance: This can be calculated by taking the total number of offer letters the organization extended, then divide this by the total number of the candidates who accepted the offer.

Why HR or talent management metrics matter?

With the help of HR and talent management metrics, every organization can enable businesses with results that matter to the organization. To gain better insights, many human resources and talent management professionals have started implementing metrics in organizations. To achieve this, they have started upgrading knowledge from certification bodies offering the best talent management and HR certifications.

Human resources professionals need to rethink their strategies to address whether the practices followed by the organization are effective or ineffective.