Top talent metrics that HR Managers and CHROs must always keep track of!

July, 2017

Talent Metrics that you cannot afford to miss

RheinBrücke IT Consulting

| 2 |© www.rheincs.com / 2017 |

Introduction

It helps in forecasting the opportunities and threats to your

organisation. Hence, you can prioritize in advance

These metrics prove that your HR department is a valuable strategic

partner in enhancing your business

The act of measuring helps in improving the performance of

your entire organization

It shows you the strengths and weaknesses of your workforce

Why keep track of important talent related metrics?


What are the best HR metrics that you must track for improving your business?

Percentage of talent goals that were met

Revenue per employee

Quality of hire improvement

Cost per hire

• All business functions must meet their strategic goals. The role of the HR team is to present a report on

the percentage of goals exceeded, met and unmet for all the business units in an organization.

• To measure the performance and innovation output of your employees, divide the revenue of

your business by the total number of employees in your organization.

• You can assess the effectiveness of your competition’s workforce by checking your RPE against

theirs. If it is lesser to your competition, you must improve your bottom-line.

• When you make new hires and if they are better than their precedents it is evident

that productivity of the team will improve.

• Work with your CFO to ascertain the increase in revenue because of hiring better

performing and driven employees.

• Cost per hire (CPH) includes all the costs like advertising fees, vendor costs, travel

expenses for scouting, incentives to employees for referrals, internal recruiter

costs etc. divided by the total hires made by your company.



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Time to hire

• Time to hire tracks the speed in which a

potential candidate move through your

hiring process once they have been sourced.

• This efficiency metric gives you the clearest

picture of how the recruiting team is

performing and can easily be tracked in a

HCM solution.

Source of hire

• Tracking the source of hires with the help

of Application Tracking Systems(ATS) gives

your recruiters insights about strongest

and weakest source.

• Keeping this data helps you to modify

your team’s priorities and cost to ensure

the best possible ROI for your business.

Turnover rate

• It is the percentage of employees who leave

the organization. High turnover can be a costly

as employees must be replaced frequently.

• Filling open positions can have negative effects on your revenue and productivity. Companies

must strive to avoid high turnover rates.

Diversity hires

• Diversity hires include diverse thinkers and

international hires especially, in client facing positions

can be a huge plus.

• If your employees reflect the diversity of your

customers, your services will sell better.


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Effectiveness of a HR software • When an investment is made on a HR software, the business

leaders would like to know about the ROI.• For instance, a learning and development module in your HCM

solution can help you by providing metrics like active users, time spent on the platform, screen flow etc.

• You can determine what works for your people and device programs accordingly.

HR programs that increased productivity

• You can determine the impact of the HR programs like

training, onboarding etc. by surveying managers and

employees.

• Ask the managers the HR program that contributed to

their reaching their productivity goals.

Learning performance index

• LPI is a survey that measures organizational performance on

dimensions like Vision, Infrastructure, Culture, Learning

Dynamics, and Training Investment.

• These dimensions, make up the critical elements characteristic of

a learning organization.

• Rate your employees based on these dimensions & produce a

report based on the hours spent on learning.


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Revenue lost due to vacant positions

• There is a drop in productivity and revenue if employee quits or if there is an unfilled position. Calculate the loss per day by dividing the average yearly revenue generated by the employee by the number of working days.

• Report the decrease in vacancy days and the reduction in the amount of lost revenue due to slow hiring and job dissatisfaction.

Employee engagement rating

• Engaged employees outperform employees who

have bad managers. Engaged employees are more

productive and generate more revenue.

• It is a very important metric for assessing all your

team managers.

Performance and potential

• Most forward thinking HR organizations use the 9-box grid. It maps the performance and potential in three levels which gives you a clearer picture of your workforce.

• For instance, who overperforms, who underperforms, who has immense potential.


Conclusion

Find strategic gaps

in the workforce

Identify top talent you

need to keep

Integrate data from

multiple sources

Identify operational areas that fall

below industry-average metrics

Predict worker and team

performance and attrition

rates

Model the effects of

organizational changes

HR managers and other

decision makers need the

analytics that can help

Use a Human Capital Management solution to keep a track of the best talent related metrics

CONTACT

Kumar Mallapalli

Partner

No. 45, 5th Cross Nagar, Ekkatuthangal, Chennai, Tamil Nadu, India 600 032 Tel: www.rheincs.com.Phone +91 44 6671 7555 +91 9677060180

RheinBrücke IT Consulting GmbH

Im Zollhafen 18 (Kranhaus I)D-50678,Köln,www.rheincs.com.Phone +49(0)221 650 60 608, Mobile +49(0)173 326 8109 [email protected]

Top talent metrics that HR Managers and CHROs must always keep track of!

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