HR KPIs are measurable values that help in tracking the organization’s human resources’ pre-defined goals. KPIs play a key role in helping HR departments to optimize recruiting processes, employee turnover rates, employee engagement, training costs, effectiveness rate, etc.
What Are the Recruitment KPIs That You Need to Track
Recruitment KPIs play a vital role in measuring the effectiveness of the hiring process and the recruiting team. Optimizing the recruiting process improves the performance of the company.
Average Hiring Time
Average hiring time is a KPI that measures the time taken to hire a new candidate for the advertised position in a company. It is necessary to promote well in advance of the requirement, and thus, optimizing average hiring time is highly important. It is measured by the number of days between the advertised job and the candidate starting the role.
Cost of Candidate Acquisition
The cost of candidate acquisition means the total amount of resources invested into recruiting the best candidate for the advertised post. The price can be determined by calculating the average total advertising, hiring process, and referral costs per hire. In brief, it helps to measure the amount invested in onboarding new candidates. Though it takes a significant part of its budget, it is an essential part of its success.
Employee Turnover Rate
Employee turnover rate is a KPI that tracks the percentage of the workforce that leaves the company in the first year of their job. This turnover can be voluntary, or it can be the decision of the company. In either of the cases, if the turnover numbers are high, it raises questions about the recruitment and onboarding process.
Average Absenteeism Rate & Cost
Average absenteeism rate and the cost is a KPI that measures the absence rate of employees due to several reasons like delays, sick leave, excused or unexcused absences, etc. The impact of absenteeism on the company’s costs can be quantified based on the employees’ average value of hours worked. This KPI measures the total number of days or percentage of working days absent. It looks at the average rate across the whole team, and if it is high, it indicates that there are problems that need to be assessed.
Effectiveness of the Training Procedure
The effectiveness of the training procedure is a KPI that measures training effectiveness and impact. This KPI assesses the efficacy of the learning solutions, improves training programs, and drives business performance. It also measures the effect of training on the trainee’s knowledge, skills, performance, and company growth. It keeps track of the number of employees who complete the training, how well training solutions map to job functions, and the behaviour change resulting from exercise. The movement has to be adequate to reach its goal.
What Are the Performance KPIs That You Need to Track
Performance KPI helps in measuring the performance of the employee’s overtime for a specific goal. They are critical KPI s to measure performance towards intended goals.
Internal Promotion Rate
Internal Promotion Rate is KPI which measures the rate at which open positions are filled through an internal promotion process within the organization. It is calculated by dividing the number of senior roles filled through internal promotion by the number of senior positions. Internal promotions are often more successful because there is more information available to make accurate decisions about the risk for bad hires.
Rate of Internal Referral Hires
Internal referral hires are when an employee from within an organization is referred to another position. It is measured by dividing the total number of referrals by the number of those hired into the open positions. This is the percentage of referrals that become the new hires. It helps in engaging the best-skilled candidate, which helps in the growth of the company.
Number of Candidates Who Meet Job Requirements
This KPI reveals the number of candidates who are qualified in relevant fields to contribute to the company’s growth. It helps in sorting out candidates who meet the interview requirements. This saves time and could be used to find the candidate that best fits the job description.
What Are the Culture KPIs That You Need to Track
KPIs can define and drive an organization’s culture, which can play a huge role in its success. Therefore it is essential to create a strong and sustaining culture. Some of the HR initiatives that define an organization’s culture may include Employee recognition, investment in training, and flexible work schedule policies.
Diversity Ratio KPI analyzes the equitable ratio of men and women and the ethnic and racial diversity within an organization. Ethnic and racial diversity has a more significant impact on a company’s financial performance. Diversity encourages workplace health and a positive environment.
Pay gap KPI visualizes and tracks the difference in pay between men and women within an organization. It is calculated by comparing the average salary of men to women’s average income as a group. It helps in tracking the gender pay gap and tracking the success of pay gap-based retention efforts.
Holiday usage is an HR KPI that keeps track of the number of holidays an employee takes annually, i.e., the number of holidays used versus the number of holidays not used. It is healthy as it gives employees time to relax and ultimately helps the firm productivity and growth.