Analytics is not an easy term for any human resource professional. Data analytics can be confusing, boring, complicated, and daunting if not handled well. HR analytics is defined by the measurement of metrics that can affect the business and company. As a people-oriented analysis, HR analytics need to be thorough. It analyses the employee’s potential to work for the organization and their performance capabilities.
HR analytics can produce a success of four results. They are:
- Generating revenue
- Mitigating risks
- Executing strategic plans
- Minimizing expenses
If you are thinking about what to consider as the key metrics for HR analytics, here is a list for you to consider.
- Revenue per employee
- Offer acceptance rate
- Training efficiency
- Training expenses per employee
- Voluntary and involuntary turnover rate
- Time to hire and fill
Let’s explore the few metrics more.
Revenue Per Employee
Revenue per employee is calculated by dividing the company revenue by the total number of employees. It shows the average revenue generated by each employee for the business. Theoretically, the higher the individual numbers the better the business’s revenue per year. But this can vary from department to department depending on the role the employee handle.
Offer Acceptance Rate
The offer acceptance rate (OAR) denotes the number of candidates who accepted the offer post-interview. A normally good OAR should be above 85 percent. It shows that the company is offering the right offers to the candidates. If the rate is lower, it means that the candidates do not meet the company’s requirements or it’s time to change the talent acquisition strategies.
Training efficiency is analyzed after the training period. It analyses multiple data points like performance improvement, role transitions, and test scores during the training. The results draw insights into how much the trainee was able to progress after the training.
Training Expenses Per Employee
Training expenses per employee denotes the amount the company spent to train each employee. The results from the training can add value to the efficiency of the training. If the expenses are high with low output, then the training can be considered a failure. The HR leadership can think of re-analyzing the training content or the amount spent.
Voluntary and Involuntary Turnover Rate
Voluntary and involuntary turnover rates consider the departure of employees from the company for both voluntary and involuntary reasons. Voluntary turnover rate can be used to analyze the employee experience in the company while involuntary rate can be used to adjust the recruitment strategies.
Time to Hire and Fill
Hiring and filling the positions in a company can be long or short depending upon the availability of quality candidates and better advertisements. It is ideal to reduce the time so as not to increase expenses and reduce the delay in production. The time to hire metric can help recruiters adjust the hiring strategies. Time to fill metrics can help the organization reallocate available employees to fill the production gaps.