![]() ![]() The total cost of the workforce (TCOW) is more than salaries. It might also mean that there are no advancement opportunities, or that people feel disrespected.Ĭompensation includes salaries, bonuses, paid time off, health insurance, retirement plans, and more.īy tracking this metric, you make sure the pay scale is aligned with the market demand. It doesn’t just mean that the pay is too low. CompensationĬompensation is one of the top reasons people leave their jobs. The more diverse an organization is, the more chances it has of attracting top talent. What does diversity mean in a business context? It refers to the range of differences within the company, particularly related to race, gender, ethnicity, and age.ĭiversity, equity, inclusion, and belonging (DEIB) are becoming priorities in many organizations. DiversityĪ recent study showed that 76% of employees and job seekers look at diversity when considering a job offer. Analyzing this metric will help you understand the trends and the reasons behind the employee’s decision. You don’t have the same control over their resignation. You can control which contracts you terminate and which people you lay off. But it is the voluntary turnover metrics that should get your attention. ![]() The turnover rate comprises voluntary and involuntary departures. Resignation drivers-why do people leave the organization? Resignation trends-are more or fewer people quitting now than in the past quarter? Can you spot any patterns?Įstimated replacement costs-how much will it cost to replace those who leave the company? Predicted resignation-an approximate number of people that will leave the company in the near future. This should be a good motivation to want to reduce turnover rates. The process can sometimes cost one-half to twice the employee’s annual salary. If you thought replacing employees was easy, think again. That means better financial management and a more effective estimation of costs. It also allows you to forecast how that number may change. The headcount tells you if you have enough people to accomplish your goals. This includes permanent, temporary, and contingent employees as well as gig workers. Headcount is the total number of people working in your company at any given time. Because of that, having an accurate headcount is crucial. HeadcountĪbout 70% of an organization’s budget goes towards its people costs. 10 HR metrics you absolutely need to watch 1. We’ll talk about each metric in detail in the following section. If you want to go deeper, you can also track more advanced metrics such as productivity or manager effectiveness. Of them, we identified 10 core metrics any company must watch: There are several types of metrics, each with its role. They are the first step towards data-informed decisions aligned with your business goals. HR metrics can help you start on your analytics journey. If you don’t, you risk losing your employees’ trust and loyalty as their values shift and evolve. You need to analyze workforce and people data to create an environment where people feel valued. Who would’ve expected the rapid shift to remote work? Plus, we now see people who want to work in companies that focus on inclusion, diversity, and well-being. If the past few years have taught us anything, it is that the way we work can change from one day to the next. They can also help you better face unforeseen events. In other words, HR metrics are a way of assessing a particular area within your business. This lets companies keep a close eye on how each of their programs are functioning so that they can make adjustments if needed. HR metrics are data points that allow you to track key human resource and recruitment activities like employee performance, retention, compensation, engagement, cost-per-hire, time-to-hire, and more. So let’s see why these metrics are so important and how to use them. The sooner you start watching your HR metrics, the better. It doesn’t matter if you have 10 or 1,000 employees. People strategies, workforce analytics, and HR metrics all help you work toward achieving your business goals. Human resources are, after all, an integral part of a company’s success. ![]() HR metrics are one of the ways to do this. ![]() Have you ever wondered what successful businesses have in common? They use people data to analyze business performance and define goals. ![]()
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