Top 5 Most Valuable Human Resource Metrics

Metrics are highly valuable measurement tools that help managers of the human resource department monitor and develop business strategies through the detailed analysis and presentation of human capital data. Any company, which is going to implement these metrics, aims at tracking and identifying key variables with regard to its current business needs and functional area. When analyzing human resource metrics, there is a chance to find out more about the impact of human resource programs your company uses, current HR trends and their alignment with short- and long-term corporate aims. What you should know is that it is possible to carry out metrics at different levels. Thus, you can start with common indicators such as cost per hire, days to fill, turnover rate and then proceed to analyzing more complex aspects that may comprise a combination of formulas and factors, including quality of hire, employee and customer satisfaction etc. Listed below are the most valuable and widely used HR metrics that can help you analyze your business performance accurately.

HR competencies
HR competencies

Employee engagement is probably the most popular HR metric that is used by lots of organizations these days. It is closely connected with business performance, since low rates of employee engagement signify that there is an increased need to improve productivity and increase costs per each hire. This metric also affects the rate of employee retention and personnel performance in general.

Competency development spend is the second metric, the aim of which is to help HR managers identify major talents and skills of employees that are required to meet the company’s business goals. Personnel skill levels should be reviewed consistently, which will allow HR experts work out the annual competency improvement plan in accordance with the available funds, expected outcomes and timelines.

Efficiency of HR training
Efficiency of HR training

Quality of hiring is another HR metric applied to define how exactly the abilities and skills of new employees vary from the initial expectations and requirements. This indicator is usually calculated around 6 months after a worker has been hired. This metric is typically combined with the speed and cost of hire in order to measure the efficacy of the recruitment process in general.

Resource utilization is a metric that has a serious impact upon the revenue of any organization. This indicator shows the ratio of the employees’ paid work to the general work amount. This indicator can be affected by diverse factors, including inconsistent calculations of current projects, ongoing trainings, special job demands etc.

Another simple HR metric we will consider here is revenue per employee. It helps measure the efficiency of all the initiatives and plans. Apart from this, it helps make the comparison of the performance of your company with that of similar companies and set internal goals for better HR management.

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