If you work in a Human Resources department you’ll be deep into the annual HR report, a document where you present all kinds of data and analyses of what how the year has been regarding the company’s human resources policies, the turnover rate, working environment, salaries and compensation, etc.
Guide to Produce a Human Resources Annual Report
Something very basic before starting and worth refreshing are the HR KPI to evaluate the department results and objectives. Here at Factorial’s blog we’ve talk before about the main indicators in human resources analytics and how to measure them. Read first that article if you haven’t already, your first step is to prepare and gather all that data.
Step 1: Metrics and results you should talk about in your HR report
These are the most common results and basic metrics one sees in end of year presentations.
Feel free to add to you annual report any other KPI interesting to your company. You can gather all that data in just a few clicks with Factorial’s custom HR reports.
Most companies use this number to know the monthly cost of their turnover rate. Added to the usual costs of having to manage an employee leaving the company, you have to calculate an additional loss of 4 to 6 months of salary from the new employee. That’s the time the new person will take to learn everything and start to be productive.
Talent retention or seniority
Seniority has a very thight relationship with employee motivation and results from a good strategy of talent retention from the company. With time, is normal for employees to lose motivation from small conflicts, monotony or a feeling of being stuck. The cost of a leave is high and one has to think not only about the money but also about the knowledge that will leave with the employee. It’s been estimated that a loss of motivation can result in up to a 34% of the company’s losses.
This data is specially interesting to know the situation of the company and its staff needs. With this information the Human Resources department and Directives can understand what kind of employee they have and make decisions based on that, like what benefits to offer: kindergarten, health insurance, transport, etc.
The average salary offered in the company is really useful to see if the company is competitive enough in the market. This information can help the HR Manager to identify ways to improve an employee’s salary with, for example, flexible retribution.
Absences report and work absenteeism
These absences and absenteeism reports help companies understand what time of year produces the most absences so the company can adapt and be prepared and avoid any major productivity losses.
Something worth noticing from this report is the unjustified absenteeism. As you well know, absenteeism has a great cost for a company and is one of the principal indicators of lack of motivation from employees.
Gathering all that information is no easy task except when you use Factorial. With Factorial you’ll get real in time data without using excel or any other software to create graphics, Factorial does it for you.
Step 2: Presenting the data for the annual human resources report
Have in mind that all those numbers mean nothing by themselves, our advice is you pair them with conclusions. After gathering all the metrics you must analyze them, make conclusions and take action to improve or maintain the results for the next year. If you are preparing an end of year HR report for the directives of your company all that will help you expose your ideas and show all your efforts are in the right direction.
Usually the HR department sends a dossier with all the data and graphics to show the people in the general end of year meeting. With a PDF it will be enough to show them everything, but you can also print some copies. Furthermore you can create a presentation with each graphic and explain what it means and your conclusions.
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