6 metrics all HR managers need to track
When measured correctly, metrics are a HR manager’s best friend.
To keep your organisation evolving, strengths and weaknesses need to be constantly evaluated, and the following 6 metrics will help you make data driven decisions that will move your company forward.
Revenue per employee.
Total sales revenue ÷ number of employees
If you want to measure the output of your employees on a more granular level, the calculation for average revenue per employee can help you measure your workplace’s overall productivity. When this metric is measured at regular intervals, it can give you a good idea of how many employees you need to maintain a profit.
Number of sick days taken ÷ number of workdays in the year
Sickness absence in Britain costs the economy an estimated £15 billon a year (source: Health at work - an independent review of sickness absence).
Sick days can incur significant costs to your company. By measuring absence rates, you can start to ascertain patterns, as well as set a benchmark for the company.
The average number of sick days taken in the UK per employee is 5.7 days.
Salary Competitiveness Ratio
Salary offered by your company ÷ Average salary offered by competitors
Offering a competitive salary package is essential to both the retention of staff and the attraction of new employees. Track this metric to ensure you offer your employees fair compensation compared to what the rest of the industry will offer them.
Aim to match or improve on what competitors are offering.
Average length of service
Total years service ÷ number of employees
Measuring average length of service can help you evaluate whether the benefits you’re offering your current employees is enough. Employee turnover can be costly, so measure this metric against your industry’s average.
Cost per hire
Recruitment spend + training spend ÷ number of new hires
With so many platforms open to help you with recruitment, it’s important to know where exactly you should be investing your money. UK employers spend on average £30,614 per new employee, so it’s important to get this right. (source: Oxford Economics and income protection providers Unum).
By calculating the average cost per hire, you can determine which platforms provide the best hires at the lowest price for your company.
If your company could benefit from a more efficient hiring process, People Care's HR consultancy services can help with that.
Conduct an employee satisfaction survey
Carrying out a quarterly survey for employee satisfaction is a fantastic way of measuring your employees’ happiness levels throughout the year. By getting this feedback, you can ensure that your employees are receiving personalised benefits that matter to them.