Human Resource (HR) departments are the backbone of every organisation. Beyond handling payroll, managing benefits, and ensuring compliance, their most crucial role is managing a company’s most valuable asset – its people.
Tracking HR metrics is essential for ensuring that HR functions operate effectively and efficiently. These metrics provide valuable insights into workforce performance, satisfaction, and retention, helping identify areas for improvement.
Implementing an effective HR management system can further enhance HR functions. Cnnect’s Business hub offers key features to streamline processes and improve overall employee experience.
1. Employee Turnover Rate
This critical HR metric measures the percentage of employees who leave the company over a specific period. High turnover rates often indicate 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 time it takes a company to fill a position, from the moment the job opening is posted to when 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 employee commitment and motivation towards their work can help companies identify factors that drive such motivation and 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 Business Hub 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 indicate 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 Management System 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, optimising their budget.
Tracking key HR metrics and implementing an effective HR management system helps companies improve their HR functions, optimise processes, and create a more engaged and productive workforce. Get in touch to learn more about how our Business Hub can improve your organisation’s employee engagement.