Human Resources Analytics is about the people and their effectiveness in the organisation. Human Capital is important to organization because they are the people who are actually working for the organization. They build the company’s core competencies and competitive advantages to the organization. With effective management of the human capital, a company can achieve the maximum outputs from its own human capital and be superior to other competitors.
- Many organizations are unaware even of how many people do they have in their organization
- The top business leaders of the organization are unaware of the impact of HR programs whether, positive or negative.
- HR Perforamnce Indicators are important because it allows organizations to make the connection between the value of what HR is doing and the outcomes of the business.
- HR Performance Indicators such as turnover rate, average tenure,absenteeism, or the financial impact of employee turnover will show effective people management .
- These will allow HR department to help business leaders solve the people problems that matter to the organization.
Human Resources Performance Indicators
No Of Employees
No of Contract Staff
Overtime Hours
Revenue Per Employee – Company
Revenue Per Employee – Sales Dept
Absenteeism
Employee Turnover rate
Time to hire
Training Hours
Health & Safety Incidents
No Of Employees
HR dept should always have its eyes set on the total figure of employees in the organisation. This will directly relate to the salary and other well being of the employees. Adequate resources should be put in place to handle this strength.
No Of Contract Staff
With the business environment turning more uncertain, these days companies depend more on contract staff – a group which is vital but needs good training and hand holding to deliver the expected results.
Overtime Hours
Managing time is very vital in business. Hence HR should have a close track of extra man hours worked by departments to get the target results. This should be reviewed periodically and optimized.
Revenue Per Employee – Company
Manpower cost is an expense of running business that will always appreciate. Hence it should be closely watched and ensure it is within the budget.
Revenue per Employee – Sales
Sales, the cornerstone of any business will need high performing employees who are high in cost also. Hence close watch should be kept to ascertain the results and its improvement.
Absenteeism
Absenteeism is a productivity metric, which is measured by dividing the number of days missed by the total number of scheduled workdays.
Employee turnover rate
High employee turnover is detrimental to business as well as nil turnover. The rate is calculated by dividing the number of employees who left during the month by the total number of employees in the organization.
Time to hire
The number of days between a job vacancy/ new requirement creation to a new employee joining the company . This is one of the Key performance indicators which reflects HR department’s effectiveness.
Training Hours
Training is an integral part of HR development. With new challenges , employees of every organisation need to undergo good and effective training as identified periodically. The total time spend on this should be monitored regularly.
Health and Safety Incidents
HSE is an important process that should be regularly monitored and guidelines improved for an agile manpower team. HR department should track this Indicator and initiate corrective action on a regular basis.
