These 5 HR Metrics Will Transform Your Workforce Management Strategy

Workforce management metricsHow do you make decisions in the HR department? Do you go with your gut? Or have you started following the growing trend toward data-based decision-making?

We have reams of data at our fingertips these days, and using that data to make better decisions seems like an obvious choice. But it’s not always easy to pull out meaningful information from the digital stratosphere—the kind that helps you understand your workforce and improve performance.

In a forest of data, sometimes it’s hard to find individual trees.

 

Why It’s Tough to Track People Metrics

Managing people isn’t like managing products. Employee satisfaction and productivity can’t always be easily quantified, and many companies struggle with knowing what to measure. Let’s look at three reasons companies don’t succeed with HR analytics:

  • They don’t have an integrated data system. If you’re storing data in multiple places, it’s difficult to pull that data together into a meaningful report. That’s why many HR software platforms use a single database to store and track all your data, whether it’s coming from payroll, core HR, or your ATS. Platforms that use a best-of-breed model have also made great strides in data integration, giving you immediate access to the key metrics you need. Whichever model you choose, be sure you have the functionality to access key data easily.
  • They don’t gather enough data. If you don’t collect the data in the first place, you can’t analyze it later. This can be difficult if you have an outdated HRIS or you’re still operating with spreadsheets. If you’re ready to take the next step with data analytics, you may need to consider updating your workforce management software first.
  • They don’t know what to measure. Now we’re getting into the subjective realm of workforce analytics. Which metrics matter? Which ones will give the insights you need to make better decisions? That’s what we’ll look at next.

5 HR Metrics For Better Workforce Management

Once you have a robust HR software platform in place, you can gather and track data to improve the effectiveness of your workforce management strategy. Take some time to put together your key performance indicators based on your business objectives, your organizational goals, and the information that matters most to senior leaders in your company. Remember, your goal is to track data that can help you make better decisions for individuals, departments, and the company as a whole.

To get you started, we’ve put together a list 5 HR metrics that will help you keep your finger on the pulse of your workforce:

  1. Productivity

Before you can accurately gauge this metric, you’ll need to decide what productivity means for your company. Is it hours logged? Calls made? Sales closed? Projects completed? Carefully consider how you monitor employee productivity, and track performance over time.

  1. Employee Satisfaction

When measured alongside productivity, employee satisfaction can indicate how engaged your workforce is. Performance reviews help you rate employee satisfaction, but you can also use tools like performance assessments, teambuilding initiatives, and incentives to see which employees are happiest at work. Use mobile alerts and email reminders to get feedback when you need it.

  1. Voluntary Turnover

Tracking turnover rates can be helpful, but measuring voluntary turnover (people who leave your company by choice) can give you an even better look at whether your employees are satisfied in their roles. Keep your eye on numbers, but also consider conducting exit surveys to ask employees about their reasons for leaving.

  1. Training Efficiency

Is your training program getting the job done? Measure training expenses per employee, and create a checklist of training goals for each employee. Monitor increased productivity over time as trainees complete their goals and compare against your training costs to determine whether your training program is meeting expectations.

  1. Retention Rate Per Manager

Just about everyone tracks retention, but can you break down retention rates by manager or department? This will help you identify any weak points in your organizational structure, and let you know whether your managers could benefit from additional management training.

 

The right metrics can help you improve talent acquisition, performance, retention, profitability, and much more. But it all starts with the right software. Do you have the tools you need to create a strong workforce management strategy?

 

Are you in the market for new workforce management software? Find your perfect match with our HRIS comparison tool!

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