Analyze key HR data like employee turnover, satisfaction and retention rates to uncover areas of opportunity within your business.
Key takeaways:
- Tracking the right HR metrics helps you measure effectiveness, boost ROI and improve employee support.
- Key HR metrics include turnover rate, satisfaction, absence rate and client retention rate.
- Working with a PEO ensures you have support behind your HR functions and systems to use these metrics fully.
Gathering data about your business and the people it serves can only help you improve and grow. HR metrics in particular help you understand your workforce and customers more thoroughly. Metrics like retention rate and employee satisfaction allow you to track hiring success, job satisfaction and overall HR effectiveness, so they impact the success of your business.
But with all the data now available to businesses, it’s hard to know which HR data to prioritize. Learn why tracking HR analytics is so important in the first place and seven top HR metrics to start monitoring now.
Why Should Your Business Track HR Metrics?
Key data helps you understand your customers, your employees and your business. HR metrics help you assess the effectiveness of your HR department and how your efforts are impacting operations and company culture.
Gathering and analyzing the right data helps you understand where you should be putting more time, energy and money. Other benefits of tracking HR metrics include:
- Decisions based on facts, not speculation
- More accurate predictions and forecasts
- Improved resource allocation
- Reduced risk
- Improved ROI on HR investment
- Higher employee satisfaction
Without tracking metrics, you’re expending energy and funds without knowing if it’s working or not. You can only improve what you measure.
3 Basic HR Metrics Your Partner PEO Can Help Identify
There are simple but insightful metrics that tell you about HR and company culture. Here are seven great places to start, which relate to both your employees and your customers:
1. Reason for Turnover
Reason for turnover is a crucial indicator of employees’ sentiment about their jobs – and the company. It can tell you not just how many workers are leaving the company, but why.
Not all turnover is a negative thing; it’s normal for people to leave their jobs for a variety of reasons, like retirement. Some churn is expected.
Build exit interviews into your offboarding process and keep quantifiable track of employees’ reasons for leaving. A PEO can assist with this documentation.
Over time, you’ll see which common reasons rise to the top and if there are any changes your business should consider.
2. Employee Satisfaction
Employee satisfaction can make or break a company. Happy workers are more productive and contribute to a more positive work culture. They are committed to the job and the organization.
Unsatisfied employees, on the other hand, don’t perform as well, contribute to dwindling morale and are more likely to leave an organization.
Start measuring employee satisfaction by building open, honest dialogue into your onboarding and offboarding processes. Keep track of what’s working and what’s not.
3. Benefits Participation Rate
Start measuring how many employees are taking advantage of your perks and benefits, which can indicate satisfaction and engagement. Additionally, a PEO partner can help track and make sure participation meets carrier standard minimums and communicate to you when there is reason for concern.
Calculate the benefits participation rate this way:
Number of employees who have enrolled
Number of employees who are eligible for benefits x100
Make Your Metrics Work for Your Business
These three HR metrics may be basic, but they can help you significantly improve your people management practices. They help you evaluate employee effectiveness and satisfaction and ensure you’re using data-driven insights to make better business decisions.
When you have a professional employer organization (PEO) by your side, it’s even easier to implement metrics tracking initiatives and understand how your employees and customers are feeling. PrestigePEO helps you update your HR systems with best practices that help you continue responding to feedback and implementing more effective support strategies.
Contact PrestigePEO today to find out about our holistic solutions and talk to an expert about your HR needs.
