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5 Key HR Metrics Every Company Should Track

March 31, 2023

5 HR Metrics Every Company Should Track

Human Resource (HR) departments play a vital role in every organisation. In addition to administering payroll, managing benefits packages, ensuring compliance, and more – often their biggest responsibility is managing a company’s most valuable asset – its people.

 

Tracking HR metrics is, therefore, crucial for businesses to ensure that their HR functions are operating effectively and efficiently. These metrics allow companies to gain insights into their workforce’s performance, satisfaction, and retention rates, making it easier to identify areas that require improvement.

 

In addition to tracking these key metrics, implementing an effective HR management system can also help companies improve HR functions. Cnnect’s HR Management Solutions offers several key features to streamline HR processes and improve the employee experience.

 

In this article, we will explore the five key HR metrics that every company should track and how Cnnect’s HR hub can further streamline business processes.

 

1.     Employee Turnover Rate

This critical HR metric measures the percentage of employees who leave the company over a specific period. High turnover rates, after all, are often indicative of larger issues such as inadequate compensation, lack of employee engagement, or poor management. Tracking this metric helps HR departments identify the root causes of high employee turnover rates, allowing them to take appropriate actions to retain top talent.

 

2. Time-to-Hire

Time-to-hire measures the length of time it takes a company to fill a position, from the moment the job opening is posted to the time the successful candidate starts work. Tracking this metric is crucial as prolonged time-to-hire can indicate a shortage of qualified candidates or a lack of efficiency in the recruitment process. Companies can, therefore, use this metric to optimise their hiring process and identify areas that need improvement.

 

3. Employee Engagement

Measuring the level of employee commitment and motivation towards their work can help companies identify factors that drive such motivation and the areas that need improvement to boost engagement levels. Engaged employees are, after all, more productive, innovative, and loyal to their companies, making them valuable assets to any organisation. Cnnect’s HR management service can facilitate employee wellness programmes and applications for studies, further enhancing employee engagement and satisfaction. 

 

4.     Absenteeism Rate

Tracking this metric is crucial as high absenteeism rates can indicate issues such as poor employee morale, inadequate working conditions, or lack of work-life balance. By measuring the percentage of workdays missed by employees due to sickness, personal reasons, or any other reason, HR departments can identify patterns in employee absenteeism and take appropriate measures to address underlying issues.

A key feature of Cnnect’s HR Hub is the capability to provide easy leave balances and applications. Employees can also communicate directly with the Human Resources officer in charge of their specific role, enabling them to report problems, request information, make suggestions, and more.

 

5.     Cost-per-Hire

Cost-per-hire measures the total cost incurred by a company to fill a position. This metric includes advertising costs, recruitment agency fees, and employee referral bonuses. Tracking this metric can help companies identify the most cost-effective recruitment channels thereby optimising their budget.

 

These metrics provide valuable insights into the performance, engagement, and retention rates of a company’s workforce. By tracking these metrics, HR departments can identify areas that require improvement, optimise their processes, and create a more engaged and productive workforce. Tracking key HR metrics and implementing an effective HR management system helps companies to improve their HR functions, optimise processes, and create a more engaged and productive workforce.

Get in touch to find out more about how our HRMS can improve your organisation’s employee engagement and more.

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