What 5 key metrics will help HR transform business performance?

By

Steve Foster

August 15, 2018

July 11, 2018

Want to transform business performance? Tracking these five key metrics is a great place to start!

Despite all the talk about ‘Big Data’, many HR functions still find it difficult to manage ‘Small Data’ and provide their organisations with the operational and strategic data needed. Research by NGA Human Resources found that over three-quarters of CEOs said they would like to receive more data from their HR team.  Good data enables new insights – when these insights are acted on, it can lead to improved productivity, lower operating costs and shift the role of HR from a transactional to a strategic business function.

Developing a cohesive management information strategy is the first step towards delivering better insights, yet HR teams often encounter two major challenges when they attempt to improve their use of data.

The research also found that more than a third (34%) of HR departments are spending more than a day each month producing analysis, often more. It’s not that organisations are short of data – organisations accumulate vast quantities of data as a direct result of their internal processes. 

The first step is to identify those metrics that will provide the building blocks for meaningful insight. Here are five key areas that organisations should focus on:

Recruitment

Inefficient recruitment processes are not just frustrating for managers who need staff urgently, they can also be hugely expensive. To understand how hiring processes can be improved, HR teams should be monitoring the key recruitment metrics involved. Performance indicators could include the time it takes to fill vacancies as well as the costs involved.

Attrition

Given the pains of the recruitment process, employers will want to keep attrition rates as low as possible. To evaluate whether the actions to retain staff are making a difference, HR teams should be examining turnover rates. These metrics can be broken down further to analyse whether there is an issue with new hires for example, or if keeping key personnel has become a problem.

Flight Risk

When it comes to losing key personnel, you’ll want to ensure you get in front of any potential problems. Satisfaction levels amongst the workforce can prove a good indicator of how likely it is employees could leave the organisation. Looking at how probable it would be for staff to recommend their employer, via a Net Promotor Score, when individuals last had training or whether their last performance review was in-line with other colleagues, are all key metrics to monitor. Predictive analytics based on clever algorithms can now identify potential leavers.

Revenue Per Employee

Reviewing revenues generated against staff numbers is a key way to judge the productivity of an organisations’ employees. This can be broken down into organisational departments, and further still by the units within. This will allow managers to evaluate the performance and contribution of their team in the business.

Personal Data

Regulatory requirements, such as gender pay reporting, have increased the importance of maintaining good employee data for analytical purposes. Personal information about the workforce now needs to be tracked against factors such as pay to stay compliant. There have also been calls for this type of reporting to be extended to race, sexuality, religion and disabilities.

Of course, collecting this information isn’t enough. Reporting is step two in the process and this stage requires the data to be up-to-date and easily accessible for analysis. The trouble is this information is often held on disparate systems, with different permission levels and technical expertise required to access the separate data sets.

To make meaningful reporting possible, HR teams need to simplify the challenge and create one single source of truth for their HR data. Bringing all this information together within one system must, therefore, be the goal for all HR teams looking to provide actionable insights that can transform an organisation’s performance.

Get your free copy of 'The Essential Guide To HR Data' today!

To discover more about NGA ResourceLink

About the author:

Steve Foster

Head of Business Consultancy

Dr. Steve Foster is Managing Consultant at NGA Human Resources and leads the UK business consultancy practice. He has an extensive Human Resources management background and for the first part of his career, worked in a range of Human Resources management roles, including compensation/reward, recruitment and line HR management. After project managing a major HR systems implementation and working on a global HR transformation project, he worked as a consultant for The Hunter Group and as Director of e-HR at KPMG. Steve now works closely with prospects and customers helping them improve and transform their business processes, manage business change and deliver a solid return on investment against their vision.

All blogs in:

Reporting and Analytics

Reporting and AnalyticsWhat are the 5 first steps to using HR data better?

By

NGA HR

August 24, 2018

August 24, 2018

Here’s our 5 top tips to help you use HR data better and reach that allusive single source of truth…

Reporting and AnalyticsWhy HR must get better at bringing workforce data together

By

Richard Shinton

August 24, 2018

July 26, 2018

Wouldn’t it be great if we all had information at our finger tips that showed what action needed to be taken to improve employee experiences and productivity. It would empower us to make positive changes that would increase workforce satisfaction and boost performance. In this blog we explore why and how...

Reporting and AnalyticsWhat 5 key metrics will help HR transform business performance?

By

Steve Foster

August 15, 2018

July 11, 2018

Want to transform business performance? Tracking these five key metrics is a great place to start!

Reporting and AnalyticsHow to impress your CEO

By

Richard Shinton

June 19, 2018

June 7, 2018

CEOs are more dependent than ever on their HR teams for reliable, accurate and timely information - but as the demand for data increases and the expectations of HR professionals continue to grow, how can you impress your CEO?

Reporting and AnalyticsFour ways you know your reporting tool isn’t working

By

Richard Shinton

June 7, 2018

May 24, 2018

The most successful organisations rely on accurate data from their HR and payroll departments. Long gone are the days where a simple spreadsheet can deliver the wealth of data required to spot patterns within the workforce and make improvements in a timely manner.

Reporting and AnalyticsHow to reduce the impact of ‘sickies’ in your business

By

Richard Shinton

June 20, 2018

April 24, 2018

Do you know how many of your staff have taken ‘a sickie’ recently? More importantly, do you understand the reasons behind them doing so?

Reporting and AnalyticsReducing the potential for flight risks

By

Richard Shinton

June 7, 2018

April 16, 2018

As an HR professional, you know that it’s inevitable that some employees will consider moving on to pastures new. Sometimes you need to accept this as part of the employee lifecycle. But in other situations, you can be more proactive.