The many measurements of HR analytics.
The ways to analyze and measure your HR success metrics.
There are plenty of benefits to HR analytics that help businesses understand more about their business and their employees. From being able to find out more about your hires, keep employees longer, train more effectively, or understand employee morale, HR analytics tools and reporting help HR departments understand more about how to effectively run their human resource management operations. Here are some of the specific kinds of HR data analytics that can give HR departments more insight.
Churn Rate
This kind of workforce analytics measures employee churn, or turnover. Turnover can mean an employee leaving the company for any reason – resignation, layoff, termination. Understanding how many employees are leaving your company on a monthly or annual basis can tell you a lot about the health of your workforce. If your turnover rate is low, that likely indicates that you have a healthy culture. If churn is high, you may want to examine the possible causes.
Absence Rate
Another example of employee analytics that HR departments can use to tell them about the health of your employee culture is absenteeism reporting. This kind of advanced analytics can be broken down in overall absenteeism or even absenteeism by manager. If your business notices a lot of absences and PTO around the holidays, that’s probably normal. If you notice sick days piling up for people who all report to the same supervisor, it may be time to do some further investigating.
Additionally, not only does absenteeism tell you something about how much employees value your organization and are engaged in their jobs, absenteeism can be expensive for businesses, leading to higher health care costs or lower productivity.
Training Effectiveness and Efficiency
Being able to run reports on how trainings go is a valuable tool for HR teams. This can not only help them plan and improve future trainings, it gives them insight into how they rank on their employee development as an organization. Additionally, the higher the employee training effectiveness, the higher the productivity of employees, because training is generally meant to make employees better at their jobs.
Revenue
Another HR analytics example is revenue per employee. This kind of reporting can speak to the quality of each hire and can help a business understand if their staffing ratio is where it needs to be to meet its goals. While every job in a company will not necessarily directly impact revenue, this is a helpful HR metric to help companies understand the efficiency of their organization.
Employee Engagement
Companies are focused more on employee engagement these days. Engaged employees are more likely to be loyal and productive employees. They are less likely to reduce morale during stressful business ventures and are also a good measurement of how effective management is. The more engaged employees are, the better their leadership is – people are often more excited to come to work every day when they believe in the company’s vision or mission and the executive team tasked with carrying that out.
There are plenty of types of HR analytics that can help HR teams understand more about their business and the employees who are helping to make it a success. Whether it’s understanding more about engagement, turnover, the hiring process, or efficiency of teams or processes, there’s likely a type of HR analytics that can help you.
