In the last post of the HR Hangout we discussed how important the Human Resources function has become over the past decade or so – specifically how it’s no longer a one-size-fits-all department and characteristics like employee headcount and demographics, policies and culture will vary from business to business. This same line of thinking also applies to which metrics HR leaders should focus on to achieve business success and this definition of success will also vary from business to business.
According to the HR Daily Advisor, a good first step when choosing metrics for your Human Resources team is to fully understand and align with business objectives defined by other members of your executive leadership team. For example, other areas for consideration are what data should be collected and the frequency of reporting on that data.
At Motus, the key metrics that HR reports on are a direct result of the company culture we strive to uphold and the nature of our business and industry. Our People team focuses on metrics that fall under the umbrella of attracting and retaining employees and enabling them to perform at their utmost potential, namely: recruiting, turnover, performance management and employee engagement.
Our team is always trying to find the next best crop of talent — whether recruiting for our entry-level Talent Accelerator Program or searching for a Senior Vice President, the process remains the same. These metrics include, but aren’t limited to: number of applications submitted, number of interviews conducted, and time required to close an open role. It’s important to note that these will depend on the size and scope of your business.
To uncover reasons why an employee decides to leave the business, it’s crucial to measure voluntary versus involuntary turnover. Consider questions like how many employees left the company during a certain time period? Did these employees leave the company by choice, for other personal interests or were they simply not performing up to par? These data points are important for all HR leaders to showcase they have an understanding of the motivations of their employee and how to retain the human capital that’s critically important to the business.
This one may seem a bit obvious but it’s very significant. Your business likely already measures how many employees were promoted over a given quarter or how many roles were filled during a specific period of time. This metric is a strong indicator of how well your employees fit within their given roles and allows managers within your business to provide feedback around areas for improvement.
According to a study by Harvard Business Review: Analytic Services, an overwhelming 71% of respondents rank employee engagement as very important to achieving overall organizational success. A few ways to measure employee engagement include:
1. What is the attendance rate at company-hosted events? Do employees attend these events at a consistent rate?
2. Do employees attend professional development seminars and workshops? Do these workshops produce actionable results?
If your employees are motivated to come to work each day, this breeds a winning culture— which helps your business thrive and grow in the long-run.
While one company’s business objectives may be vastly different from another’s, HR leaders ultimately want to ensure they have the right reporting metrics in place. This guarantees your business is in the best possible position to thrive and grow in its respective industry. As a team, we believe a strong company culture is extremely valuable and most of the metrics our People team reports on (recruiting, turnover, performance management and employee engagement) are a byproduct of our people. If you’ve fostered a work environment that allows your employees to learn, grow, and advance each day — you’re setting your business up for continued success.
To get more tips for today’s HR leader, stay tuned for the next installment of the HR Hangout.
The HR Hangout is a recurring series on the Motus blog featuring advice from Jessica Chronchio, Director of People Operations at Motus. A proven Human Resources leader, Jessica has her Master’s Degree in Human Resources Management and is an active member of SHRM (Society for Human Resource Management). The topics covered range from empowering HR in the boardroom, best practices around people management, insights on industry trends, and advice for today’s HR leader.