Friday, August 22, 2008

12 HR Metrics to START with

Many times over the last few months, I have been asked, "Which HR metrics can I start with?"

My standard answer is usually, those metrics are unique to your HR department and your company strategy. What I have realized is that some people just need a starting point. Because there are so many HR metrics to choose from it gets very overwhelming. So, if I wanted to start with just 12 metrics, these are the ones I would pick:

1) Revenue per employee (to see trends which will lead to asking "what happened there?")

2) Turnover/Retention by department, supervisor, performance, age, etc.

3) Recruiting: Cost per hire

4) Recruiting: Choose appropriate efficiency measure, response time, time to fill, etc.

5) Recruiting: Average new hire performance rating

6) Total HR expense/total revenues

7) Company and departmental level employee engagement scores

8) Compensation budget variance

9) HR service delivery satisfaction rating

10) Training spend per Full time employee

11) Training: Appropriate results based metric after training i.e. customer satisfaction score

12) % of strategic competencies available in organization

These 12 should get you off to a good start and will produce the classic follow up question, "why is that?" Answering the WHY questions will help you customize your HR metrics to your own company needs.

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