Yesterday’s Advisor discussed the C-Suite and HR metrics; today, suggested metrics for different functions. Again, our insights come from the all-HR-in-one website, HR.BLR.com.
Here are suggested metrics for various HR functions:
Metrics for the Recruiting Function
- Time to fill a vacancy
- Quantity and quality of applications based on recruiting source
- HR cost per hire
- Voluntary/involuntary turnover rate of new hires during first year of employment
- Quality and retention rates of new hires by recruiting source
- Diversity ratios of new hires
Metrics for the Employee Relations Function
- Number of complaints filed by employees
- Percent of complaints that proceed to a state agency, court, or other external dispute resolution
- Amount of time taken to resolve an internal complaint
- Percent of cases resolved with no money paid out by the company
- Percent of cases in which large financial settlements or awards were made
- Percent of cases in which documentation was inadequate
- Dollars spent on attorney’s fees
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Metrics for Compensation Programs
- Compensation costs per dollar of profit
- Compensation costs per dollar of revenue
- Analysis of performance and production levels of employees paid in the top 30 percent of their salary range
- Total compensation costs as a percent of total company operating costs
- Analysis of compensation levels to the marketplace and key competitors
- Forecast of compensation needs based on future plans
- Compensation mix, meaning fixed salaries versus performance-driven compensation
Metrics for Training Programs
Training is another area that can be difficult to quantify. However, it may be helpful to look at metrics that target the type of training and what it was intended to accomplish. For instance:
- Cost of sales training as a percent of total sales
- Increase in hours of sales training compared with increases in sales
- Changes in performance levels of employees who received training
- Percentage of employees who cite lack of training or advancement as a reason for leaving
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Practical Tips for Using HR Metrics
Metrics should:
- Give the whole picture, including quantity, quality, time, cost, and effectiveness.
- Focus on key areas where change is necessary.
- Develop a benchmark to use for evaluating progress toward goals.
- Set goals and establish metrics for measuring progress.
- If possible, be compared to metrics with similar measures from key competitors.
- Use the language of the business leaders, including ratios and measurements they know.
Finally, don’t be afraid of data or of measuring results. Metrics can add to your professional credibility and garner support for your programs
Metrics, an important tool, but one more thing to add to the list of HR challenges—in HR, if it’s not one thing, it’s another. Like FMLA intermittent leave, overtime hassles, ADA accommodation )and then on top of that whatever the agencies and courts throw in your way).
You need a go-to resource, and our editors recommend the “everything-HR-in-one website,” HR.BLR.com. As an example of what you will find, here are some policy recommendations concerning e-mail, excerpted from a sample policy on the website:
Privacy. The director of information services can override any individual password and thus has access to all e-mail messages in order to ensure compliance with company policy. This means that employees do not have an expectation of privacy in their company e-mail or any other information stored or accessed on company computers.
E-mail review. All e-mail is subject to review by management. Your use of the e-mail system grants consent to the review of any of the messages to or from you in the system in printed form or in any other medium.
Solicitation. In line with our general non-solicitation policy, e-mail must not be used to solicit for outside business ventures, personal parties, social meetings, charities, membership in any organization, political causes, religious causes, or other matters not connected to the company’s business.
We should point out that this is just one of hundreds of sample policies on the site. (You’ll also find analysis of laws and issues, job descriptions, and complete training materials for hundreds of HR topics.)
You can examine the entire HR.BLR.com program free of any cost or commitment. It’s quite remarkable—30 years of accumulated HR knowledge, tools, and skills gathered in one place and accessible at the click of a mouse.
What’s more, we’ll supply a free downloadable copy of our special report, Critical HR Recordkeeping—From Hiring to Termination, just for looking at HR.BLR.com. If you’d like to try it at absolutely no cost or obligation to continue (and get the special report, no matter what you decide), go here.