HR analysis helps you understand how your staff efforts are being optimised in your business, and reveal vulnerabilities that you may need to address. Do you know the return on investment of your HR programs? How much is each staff worth? Have you put a number on your company’s human resource efforts? We can support you by looking at your data and producing HR metrics to help you get a handle on the cost and benefits of HR management. Measuring the success is essential to understanding how capable the company is at acquiring and keeping talent. You may have a sense of company profit and performance, but these HR Analytics are a lot more meaningful if they also help you understand the characteristics of the workforce and guide to your future HR strategy.
As HR Practitioners we understand the key data measurements and understand why HR Reporting Metrics is critical to knowing your staff movements but also underpins your future HR strategy. We are also a little techy and feel comfortable with spreadsheets.
HR ANALYSIS AND PEOPLE ANALYTICS. Organisations are recognising the significant part HR analytics has to play in steering an organisation towards their desired outcomes. HR Analytics is widely responsible for the change in the function, and it’s empowering HR decision-makers with insights that enable them to understand their business better than ever before. HR Analytics is undoubtedly the future of HR, but with 44% of HR decision-makers reporting that they have no main focus for analytics this financial year, potentially almost half of all businesses are limiting themselves from reaching their true potential. HR Analytics within the HR function provides practical data on how organisations can reach their wider strategic goals.
When people are unsatisfied, they are likely to “vote” by leaving. That is why this statistic will give leaders a sense of how well their company is doing in keeping individuals engaged enough to stay. This metric is usually calculated by taking the number of employees who left within 12 months and dividing them by the average actual number of employees during the same period. Some leaders will compare this number to companies who are in a similar industry.
Companies need to understand the value of keeping employees on staff because there are several expenses associated with their departure. Leaders can crunch the numbers by taking the total cost of separation and adding costs for vacancy, recruitment, and training.
Retention and Attrition
It is helpful for leaders to find out how long workers are staying with the company. If rates are low, this can help facilitate a conversation on what may cause staff to want to leave so soon. Are there not enough opportunities for promotion? Are salaries stagnant? Is a competitor stealing workers away? Retention and Attrition is calculated by taking the average number of years of service across the whole company. To get even more in-depth insight, leaders should take the retention and attrition of various age groups to see how the number changes. This can help leaders understand how generational changes may be impacting the length of service at their organisation.
Are employees meeting or exceeding goals and objectives? Leaders have to drill into the story behind the numbers to understand what may be hindering employees. It could be outdated technology, a lack of clear communication, bad hires, or a simple lack of motivation. This number will help leaders work with HR to develop a plan to get performance numbers back on track. The formula for this metric is taking the number of performance targets met or exceeded and dividing it by the total number of company goals.
Staff Engagement or Satisfaction Rating
It is the percent of employees engaged or satisfied overall. This statistic will likely tie in with turnover, attrition and retention, and percent of performance goals met or exceeded. If a large percentage of employees are disengaged, this will spill into other areas that leaders need to be aware of. Results will help leaders get a sense for how many initiatives they need to establish to raise low engagement numbers.
Average Days Absent
What are the reasons they have to take vacation or sick time? This information can be invaluable and can reveal a lot more information. Are there parents who need time off to deal with family issues? You can work with your people to develop flexible working to better accommodate them and can even suggest remote work programs. Average days absent is calculated by taking an average of all employee absent days.
Compensation, Benefit Revenue Ratio and Benchmarking
How much is the company spending on salaries and benefits in relation to revenue? Can the company sustain offering raises or a more detailed benefits package? These numbers will give leaders a benchmark to know what they can offer to new and existing talent. Leaders can take compensation or benefit costs and divide by total revenue to find the ratio.
HR Cost per Employee
This information can inform the strategy of metric keeping. How much is HR spending per employee? This calculation can include the software needed to keep the metric, training and development, and programs. This number will help calculate ROI as well. You can calculate this number by taking the total number of HR costs and dividing it by the number of employees.