Five key HR metrics your HRMS should be measuring
More accurate HR analytics are a key benefit to implementing an HRMS. Metric are more than static counts at a point in time - they are a means to better decision making through management intelligence and quantifiable facts. Are you taking advantage of the data in your HRMS? Here are five key HR metrics that you can use to deliver value to the business regardless of size or industry.
1. New hire turnover
Employee turnover is a basic report that tells you how many employees have left, often with details like location, job level, department and length of service. Employees leave for many reasons but the ones who leave the soonest are often the most costly as there are recruitment and training costs to get a new employee onboarded. Employees who leave in the first year of employment are a lost cost, so analyze this HRMS metric carefully and take action to lower this count as much as possible for bottom line savings.
2. Appraisal level versus pay range
‘Pay for performance’ is a standard HR phrase but are you ensuring that you are delivering on that promise? This metric should show your top performers and how their compensation compares to the pay scale. Is your top talent being paid above industry average and does their pay align with their performance and expectations?
3. Exit interview comparison to job acceptance factors
As a company your HRMS should be tracking the top reasons why a new employee accepts a position and why an employee chooses to leave. Many companies perform exit interviews and act on trends. This HR data comparing incoming to leaving can be insightful. Are your policies attracting young talent but not doing enough to retain experienced staff, for example?
4. HR spend compared to revenue
HR is often challenged to do more with less as it isn’t a profit center or revenue generator. Yet HR tasks are essential to profit creation as they help recruit and onboard the right staff while ensuring that legal and administrative activities are done. Do you know how much is spent on HR activities as a part of revenue generated? This data can help to justify increased HR spend especially when compared to industry averages.
5. Employee and manager interaction with the HRMS
This HRMS metric would not have been seen on earlier lists prior to newer functionality such as collaborative features in social HRMS. An HRMS is a tool to engage employees and empower learning on the job. HR analytics can measure enhanced learning and increased knowledge but your baseline should track what percentage of your workforce is actively logging in to the HRMS and how often they use the application.
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