10 HR Metrics That Matter to Your C-SuiteDecember 17, 2020
HR professionals use metrics to guide decision-making every day. But when it comes to taking your data to the C-suite, make sure you’re presenting the metrics that matter most.
As a human resources professional, you could spend hours looking at data to help guide your next big decision. But when it’s time to present to your company leadership, it’s helpful to know your audience. Go into your next meeting strong by knowing the top 10 HR metrics that matter most to your C-suite.
1. Turnover Rate
When your employees leave, your company takes a hit – in both finances and morale. In fact, each departure costs about one-third of that worker’s annual earnings. And when your turnover rate is high, these expenses can add up to be quite a costly problem – a problem that your C-suite is noticing.
Start looking beyond – and before – the exit interview to find the root cause. A modern workforce solution can utilize data insights to help you predict trends and flag employees at-risk of departure.
2. First-Year Turnover Rate
Losing an employee at any time can be a challenge. But consistently losing employees during their first year of employment should put a red flag on your revolving door. In fact, new hires leaving so soon can especially impact your brand, recruitment budget, and team balance.
Considering the money, time, and resources it takes an employee to settle into a position, the astonishing fact that more than one-third of newly hired employees quit within their first year means your return on investment quickly diminishes if your first-year turnover rate isn’t under control. Look to common places of improvement, such as onboarding and learning management systems to ensure your new hires are getting the support they need during their critical transition period.
3. Cost per Hire
As you look to replace your open roles with top recruits, it’s crucial for your team to bring a thorough estimate of your cost per hire to your company leadership.
Knowing your line-item expenses including internal and external costs, salaries, and total number of hires during a set period can not only help you make informed recruiting decisions, but can also help you plan ahead when it’s time to evaluate employee performance to see how your investment has truly panned out.
4. Time to Fill Open Positions
You’ve all heard the phrase “time is money.” Well, that phrase has never been more true than when you’re trying to fill open roles (have we mentioned yet to have your cost per hire numbers handy?).
On average, it currently takes 36 days to fill an open role. The longer a position stays open, the more money you’re spending on job board listings, your current employees taking time to interview and cover tasks, and your own team sifting through resumes. Employing a recruitment dashboard backed by an all-in-one modern workforce solution will give you a bird’s-eye-view of your reach while still collecting and evaluating data. You can also get creative with your strategies, like connecting with your number one candidates through video to leave a lasting impression.
5. Diversity and Inclusion
Do your employees feel included? The value of diversity and inclusion in the workplace not only makes good people sense but business sense, too. That’s because diversity and inclusion strategies are no longer a “nice to have.” Candidates, employees, and clients are making decisions on who to work for and with based on these strategies. In fact, according to a Deloitte survey, “94% of executives and 88% of employees believe a distinct workplace culture is important to business success.”
By looking at your company’s demographics, you can empower your C-suite to make sound, data-based decisions rooted in a progressive strategy to remain competitive.
6. Performance Metrics
Your company leadership is looking at the big picture. How are employees performing? Are teams measuring up to their goals? Naturally, it would make sense to look at a metric like percentage of performance goals met or exceeded and call it a day – but you also want to make sure metrics like these are accurate.
Because most companies only do performance reviews once a year, goals can massively change due to reasons beyond the employees’ control – leaving 95% of employees feeling dissatisfied with their company's appraisal process, and 90% believing the process provides inaccurate information. Don’t dust off performance reviews once a year. Instead, make it a continuous process for both managers and employees, employing 360-degree feedback. Use a modern HR tool where you can track progress, like Journals, to consistently monitor feedback and course-correct as needed.
7. Internal Promotion Rate
Successful employee development not only leads to job satisfaction and retention, but it can also lead to an increased internal promotion rate when your top performers continue to grow their skill levels.
Employees – and managers – who are committed to high achievement can utilize a modern workforce solution and monitor progress with tracking linked directly to each employee record via a learning management system. A continuous, on-the-go learning experience with the ability to incorporate peer-to-peer options could lead to a much more effective training program and a higher internal promotion rate.
Your C-suite is always looking at the bottom line. If you’re using an HCM solution, are you getting the biggest bang for your buck by maximizing adoption and utilization? Take a look at how your employees are — or aren’t — using it. If they aren’t, it could be a sign that there’s an issue with poor experience or feature availability. A good, all-in-one suite will highlight these metrics and guide you on the best steps to take to make the employee experience better.
9. Engagement Metrics
When you think about employee engagement, your mind might not gravitate to the hard numbers. But when people like their jobs, are proud to do it, and are more engaged, they’re likely to a) deliver on their goals mentioned above, and b) stay at their company longer.
Encourage an environment of open dialogue, where employees know that their voices are being heard. A survey tool can help you measure the sentiment of your workforce, opening the door for continuous feedback and conversations to help you improve.
10. Pay Equity
A rising trend in HR is pay transparency – with some states already making this trend into law. As your company prepares to align, it’s important to make sure you don’t have any pay discrepancies that could highlight gaps due to gender identity, race, or other reasons.
Diving into your payroll metrics beforehand to analyze where you need to adjust will help you solve pay equity issues and get back on track with your overall diversity and inclusion goals.
Knowledge Is Power
Find the sweet spot between the data and your people. Use these metrics to help paint a picture for your C-suite of the full scope and help move the needle forward.
If you need assistance with finding a modern workforce solution that can create dashboards and analytics reports for you, request a demo with Paylocity. We partner with you right from the start to ensure that your priorities are met today, and that you’re set up for success well into the future.
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