Data Driven Human Resources

We know that key performance indicators (KPIs) help managers call the shots and help businesses respond effectively to trends of the market. Sales and Marketing decisions are naturally data-driven, and KPIs play a key role in that, especially with the exponential growth of big data and relevant consumer statistics.

On the other hand, decision-making within Human Resources is often perceived as insight-driven and qualitative in nature — seems to be more the domain of humans than software. But there are many HR-specific KPIs that can help turn HR decisions into data-driven ones, enabling HR to streamline their work and improve their outcomes quite significantly.

In fact, the organization’s data should no longer be the “precious” of marketers alone. HR, too, can benefit from the insights and intelligence that KPIs offer.

A truly productive HR dashboard helps HR managers and business management to better assess the teams’ productivity, monitor the progress of key projects, measure the effectiveness of HR campaigns, and challenge employees by setting objectives over a period of time.

When building a KPI-rich dashboard for HR, there is an extensive list of KPIs that are particularly relevant to HR to choose from. The essential ones might include:

  • Financial indicators (productivity)
  • Human indicators (workforce monitoring)
  • Compensation indicators
  • Recruitment indicators
  • Social climate indicators

To choose the most useful indicators for your organization, you’ll want to select the ones that are directly related and relevant to your business’ HR strategies.

10 KPIs To Manage Social Climate and Talent Growth

As an HR manager, having the right indicators at your fingertips can help you get out in front of your decision-making and develop more effective HR policies.

If all of your business data is connected to a global performance management system, as with ClicData’s platform, you can better understand and analyze your most pressing issues and set up organizational and functional processes that advance your business objectives.

Tracking HR-related metrics with KPIs that calculate absenteeism, year-to-year turnover, change in employee engagement, and employee satisfaction rate, for example, can help you manage your social climate and talent growth.

You might also use them to create more targeted action plans to improve team productivity or correct any imbalances that are hindering business growth.

There are several useful categories of indicators for HR purposes, including engagement, absenteeism, mobility, and training and development. Here are the KPIs we recommend you start with. Choose the ones most relevant to your organization and your needs:

KPIs to track engagement

  • Turnover rate (total, voluntary, and involuntary): Percentage representing the number of employees who leave the organization for a given period compared to the average number of employees in the organization during the same period.
  • Retention rate: Measures the percentage of employees who are still employed by the organization at the end of the period.

KPIs to track absenteeism

  • Absenteeism rate: Total number of hours of absence expressed as a percentage of the hours available for work.
  • Number of days lost per employee: This indicator measures the number of days of absence per employee.
  • Bradford Factor: This is an indicator that relates to the frequency of absences to their duration. It calculates a score for the absence of each employee.

KPIs to track mobility

  • Promotion rate: This indicator gives you the number of employees who have been promoted compared to the average number of employees.
  • Internal mobility rate: This is the total movements (transfer, promotion, demotion) in an organization expressed as a percentage of the average number of employees.
  • Career path ratio: Ratio comparing total promotions versus total internal movements (promotions + demotions + transfers).

KPIs to track training and development

  • Training hours per employee: This indicator measures the average number of training hours per employee.
  • Training investment per employee: This indicator establishes training investments per employee.

KPIs For Successful Hiring Campaigns

Several KPIs make it easier to assess the quality of your recruitments as well as streamline your processes and procedures:

  • Time taken for the recruitment process
  • Selection ratios
  • Cost/rate of hiring
  • Time devoted to the selection of candidates
  • Proportion of CDD / CDI recruited
  • Diplomas
  • Diversity rate of new hires
  • Satisfaction of new candidates

With these KPIs, a more effective recruitment strategy can be developed. They also make it easier for recruiters to recruit the right profile for the position and help to reduce the search time, evaluate the submitted CVs, select the best candidate, and minimize the risk of candidate inadequacy for the job.

Because of their potential impact, it is important to set up these performance indicators before launching any recruitment campaigns. The insights you gain from them can help you determine the best course of action to achieve your organization’s goal.

Collecting and analyzing data related to all stages of the recruitment process — from the publication of the offer to the integration of the new employee at +1 year — can reveal what is hindering and what is helping the process and enable you to revise your recruitment strategy to be much more proficient and effective. Selecting and monitoring KPIs for HR can also help you determine the ROI of the actions your department undertakes — and respond as necessary.

Between the two bookends of the recruitment process — from when a job is offered or a position is opened to when the candidate is considered to be the right fit and is hired — there are numerous measurable actions to optimize each stage along the way.

For example, a high turnover rate might be the result of a series of poorly-evaluated recruitments. Key performance indicators can help you find the weak spot in the process and correct it.

KPIs to monitor recruiting

  • Need for recruitment: This KPI is preferably set to be over one year to guide all recruitment officers. Everyone will have a common goal, such as to recruit 200 people in 2020. Beyond giving everyone an objective, pre-determined, common goal, it will also be closely linked to the need for CVs to be generated.
  • Candidate pipeline: This one is easier to demonstrate by example than to describe. Let’s say I have a consulting firm, and I need to recruit 200 expert consultants over the year. Recruiters will publish job offers on job boards, career sites, and social networks and encourage employees to seek co-opting through internal emails. I, therefore, need a pipeline of 280 CVs per month, which turn into 90 exploratory interviews on the telephone, and then 30 interviews for 12 people hired.
  • Number of interviews conducted: Receiving resumes is great; it indicates that people want to work for your business. But between the moment they apply and the exploratory interview, some time elapses. The problem is that it’s highly likely that in the first 7 to 24 days, you will lose the best candidates, and your competitors will take them from under your nose.
  • Time of the recruitment process: The length of time between job posting and the integration of the new hire is an indicator that tells you:
    • the time required to recruit (1 month, 2 months, 6 months, etc.)
    • the length of time between the submission of the CV, the telephone interview, the physical interview, and integration
  • Quality of the sources: Knowing the efficiency of your promotional channels is essential. It’s just like advertising: the marketer will put the most budget on the channel which brings the most conversions. In the use case, the quality can be measured by the number of CVs you received and give an indication of which job board is worth investing in.
  • Quality of recruitment— Turnover or attrition rate: Knowing how many new employees you had in year N that are still in the same position in year N + 1 will give you your hiring success or failure rate. If so many leave after one year, find out if it’s a recurring trend or just a bad batch of employed candidates. Or, if all the people hired by the recruitment manager are still in their post two years later, you can recognize that person as being a great fit for the team and the company.

Predictive Analytics For HR

Would your HR job be easier to do and your goals be easier to accomplish if you knew exactly what positions might open up in the short or long term, which employees are at high risk of leaving, and which candidate for a position is most likely to succeed if hired? Predictive analytics can make these much more possible for you.

Data is a wonderful thing because it tells us about ourselves and our world. Predictive analytics, in particular, allows you to use data to help you see how to fine-tune your HR decision-making efforts and streamline your HR processes. With comprehensive data to draw from, you have all the information you need about your employees, your talent pool, and your candidates to identify past trends and draw conclusions about future trends.

For example, if you learn that all of your employees who have left your organization in their first year have certain things in common — say, they are roughly the same age, they have the same qualifications, and they have the same level of responsibility — then you’ll recognize that you need to incorporate more retention efforts with similar employees or do a better job of informing them about the position and the company during their recruitment process.

Using predictive analytics models in HR can mean faster, cheaper, and more efficient recruiting.

Recruiting solutions now allow you to identify factors that are common among your top-performing employees and then analyze thousands of resumes online to find that rare gem who has those same characteristics.

Without such a tool, human recruiters tend to be more arbitrary and less capable of being able to factor in the countless considerations that help identify the best fit for the job. Analytics would let you quickly compile a lot of data on the candidate, correlate the data according to a pre-established model of effective employees, and assign a rating of the likely success of the candidate.

Some companies use predictive analytics to be alerted when indications are that certain employees might be at risk of leaving and to reduce the attrition rate. Some create profiles of employees at risk, for example, with considerations of their travel time, remuneration, the number of projects they manage, and level of absenteeism. Once alerted, management can take action to help improve or reroute the situation.

Predictive analytic tools also help managers analyze human networks in the company. By analyzing how work is distributed internally, as well as emails, employee calendars, and other data, they can recognize those employees who are more committed and those who have less commitment to their work — or even are close to departure.

Executive Summary

Data-driven human resources management can help HR make better decisions for their own efficiency and to support a more productive and agreeable workforce in the organization. Both Human Resources professionals and managers, in general, are supported with data that helps them find the best fit for positions that are opening up and helps them work with their employees better. And that benefits everyone.


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