Major human resource kpi explained
In order to analyze something you need to know how to measure it. This is a universal rule in business. Any business is a complex structure with numerous elements that directly or indirectly influence business success. In order to survive in the Morton business and highly competitive markets you need to be constantly monitoring business performance. In order to be fully informed on what is happening to your company, what strengths and weaknesses it has and what needs to be improved, you should certainly use special automated performance evaluation software, like balanced scorecard system.
Balanced scorecard system is widely used by professionals in me humorous business areas. This tool measures so called key performance indicators, KPIs for short. These indicators represent business performance through evaluation of different business aspects.
Select most important human resource kpi
No big company can function without efficient HR Department. It is not a big problem to manage 10 people who work for your company. But what if your business employs hundreds or even thousands of people? If you cannot properly manage your personnel, even the best professionals will not show their best performance. It is like using an expensive and smart computer program without any knowledge on how to operate it and use all its features.
Human resource KPIs mostly concern costs spend to hire, train and measure personnel performance. Let’s review major human resource KPIs
Cost per hire. Any company usually spends a certain amount of money to find and hire at professional employee. The work of HR specialist is to spend as little money as possible to find the best professional in a particular area. We refer here such costs as advertising costs, age and fees etc.
Length of employment. This is a very interesting indicator which in a way characterizes employee loyalty to the company. If qualified managers refuse to work in your company for more than a year than there is certainly something that bothers them. This may be compensation, working conditions or any other factors.
Training and development. This category includes a number of KPIs related to costs spend for training and coaching of personnel. This KPI should be constantly compared with expected revenue rate, since goal of any training session is to make employee bring more profit for the company.
Time to fill. This is the time HR department needs to find and you employee to a vacant position. The faster you can do that the less money you spend and the more you save.
Human resource kpi measures HR performance
