Top Ten HR Metrics – Knowing the Numbers and How to Use Them
HR metrics are sometimes overlooked by businesses who assume they're too complicated to deal with. But HR metrics can help uncover strengths and weaknesses within a company and allow you to understand which areas you need to focus on improving and which ones you need to capitalize on. From basic HR department efficiency to uncovering the exact cost of each new employee, HR metrics are invaluable for assessing your business and devising strategies. And the best HR administration programs like those from Unicorn HRO can make utilizing HR metrics simpler than ever. Here are ten of the most helpful HR metrics and what they can tell you about your company.
- Cost Per Hire – One of the most commonly used HR metrics, this can tell you just how much it really costs your company when you hire a new worker.
- Revenue Per Employee – Similar to the above HR metrics, these HR metrics help you uncover just how much each one of your employees is actually earning for your company.
- Absence Rate – One of the simplest HR metrics, this one gives you a look at just how many days your workers are missing and could indicate employee satisfaction rates.
- Benefit Cost – These HR metrics will give you an overview of just what your benefits package costs you per employee.
- Satisfaction – One of the more difficult to gauge HR metrics that tells you how satisfied your workers are. Satisfaction is more abstract, and surveys are the only real way to gather the needed info for these HR metrics.
- Turnover – These HR metrics are straightforward and give you a look at how many employees leave your company in a given year.
- Tenure – Conversely, these HR metrics help show the average amount of time that your employees have been with the company.
- Turnover Costs – These HR metrics can surprise many employers and help show you just how much it costs you when you lose an employee based on separation costs, vacancy costs, new hiring costs, and new training costs.
- Workers Comp – Actually a pair of HR metrics, these can either focus upon the number of workers comp incidences within a set time period or tell you the exact costs of workers comp per employee.
- Time to Fill – These HR metrics help highlight the efficiency of your HR department and measure the time it takes them to fill a vacant position in your company.
There are many other HR metrics that can be used to uncover all sorts of aspects involving your company. As mentioned above, many great HR systems will be able to help you track various HR metrics whenever it is needed, and the minimal investment for such a system from Unicorn HRO will pay for itself quickly when you begin to utilize the HR metrics and find out just where your companies main expenses are coming from and where your business is the most efficient. With a combination of good planning, proper analyzing of HR metrics, and effective strategy, you can use HR metrics to move your company into the future