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5 HR Metrics to Drive Your Business Goals

12/12/18 11:31 AM

This year is coming to a close and as your business reviews the success of your 2018 HR goals, there are a few metrics to keep in mind when devising your 2019 goals. HR leaders and managers need to understand how the organization is performing currently by defining and tracking the right set of metrics to plan for the future.

Because collecting data and calculating HR metrics is no small feat, it’s important to focus on the ones that really matter; tracking too many metrics can be overwhelming and counterproductive. Determining which metrics to measure and report will depend on an organization’s overall strategy and goals, so collaboration across many departments is strongly recommended. This approach helps HR focus on those metrics that support operational managers and most directly impact progress toward business goals.

Some of the most powerful and commonly used HR metrics include:

1. Employee Turnover

Tracking turnover not only helps an organization budget more accurately for replacement and training costs, but it alerts HR and operations to potential problems, such as non-competitive salaries or low employee engagement, that require immediate attention.

2. Overtime Costs

Overtime is a value metrixReliance on overtime can quickly send labor costs spiraling out of control. Tracking overtime can help managers identify patterns, understand relationships to demand, and limit use only to those circumstances where it 

3. Employee Mix

Tracking the number of part-time, full-time, temporary, and contract workers — and how that correlates to supply and demand — helps organizations maintain an optimal employee mix that balances service and cost.

4. Unplanned Absences

Follow the patterns of unplanned absencesTracking employee time off provides insight to help control the costs of unplanned absenteeism including overtime pay and temporary replacement labor. The more accurately time off is monitored and managed, the better organizations can plan and budget for unplanned absences.

5. Cross-training

Because cross-training is fundamental for building functional flexibility into the workforce, it’s important to track employee skills and certifications. These metrics make it easier for managers to fill open shifts or replace absent workers with qualified employees to meet service level agreements and minimize compliance risk.

Visual, valuable dataIn order to capture all the data needed to set these metrics and goals, including labor hours and costs, absences, leave, schedules, skills, certifications, and more, needed to calculate and track employee metrics and stores it in a single, you will need a unified workforce technology. Access to centralized employee data provides a wealth of information that can be extracted to evaluate performance and keep the workforce aligned to meet — or exceed — performance standards and achieve corporate goals.

To learn more about our unified workforce management solution and how our HR module can assist in gathering data to help you set goals, download our HR Product Guide.

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