{"id":88527,"date":"2022-12-13T22:29:59","date_gmt":"2022-12-13T20:29:59","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=88527"},"modified":"2022-12-16T15:48:20","modified_gmt":"2022-12-16T13:48:20","slug":"hr-metrics","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/hr-metrics\/","title":{"rendered":"11 key HR metrics you should be measuring"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">One of the key roles of HR is to continuously monitor the way an organization is running to ensure that <\/span><b>all processes and resources are performing as efficiently and productively as possible, especially in terms of a company\u2019s employees<\/b><span style=\"font-weight: 400;\">. The best way to do this is by tracking and analyzing the right <\/span><b>HR metrics<\/b><span style=\"font-weight: 400;\">. When managed effectively, the right metrics can help you better manage your talent so that you can build a workforce that is happy, productive, and engaged. And that\u2019s not all. According to Deloitte, <\/span><a href=\"https:\/\/www2.deloitte.com\/us\/en\/pages\/human-capital\/articles\/enabling-business-results-with-hr.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">data-driven people analytics can also help you enhance your organizational decisions and drive continuous improvement<\/span><\/a><span style=\"font-weight: 400;\"> in your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this guide, we are going to discuss <\/span><b>which HR metrics will help you obtain a clearer picture of the reality of your business<\/b><span style=\"font-weight: 400;\">. That way, you can make the necessary adjustments to your talent management processes and help your business grow and develop.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/get-started\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-86534 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-300x103.png\" alt=\"https:\/\/factorialhr.com\/get-started\" width=\"804\" height=\"276\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-1024x350.png 1024w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0-768x263.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18144227\/bENG_Blog_banner_900x308_A_v1.0.png 1350w\" sizes=\"(max-width: 804px) 100vw, 804px\" \/><\/a><\/p>\n<p><b><div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.com\/blog\/hr-metrics\/#importance-of-people-analytics\" title=\"Importance of People Analytics\u00a0\" data-target-id=\"importance-of-people-analytics\">Importance of People Analytics\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.com\/blog\/hr-metrics\/#11-valuable-people-analytics-hr-metrics\" title=\"11 Valuable People Analytics HR Metrics\u00a0\" data-target-id=\"11-valuable-people-analytics-hr-metrics\">11 Valuable People Analytics HR Metrics\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.com\/blog\/hr-metrics\/#tracking-hr-metrics-with-factorial\" title=\"Tracking HR Metrics with Factorial\u00a0\" data-target-id=\"tracking-hr-metrics-with-factorial\">Tracking HR Metrics with Factorial\u00a0<\/a><\/li><\/ol><\/nav><\/div><\/b><\/p>\n<h2><strong>Importance of People Analytics<\/strong><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><b>People analytics refers to the collection and analysis of all your HR metrics<\/b><span style=\"font-weight: 400;\">. The aim is to collect employee data in order to <\/span><b>better understand your workforce and improve the way you manage and engage with your employees<\/b><span style=\"font-weight: 400;\">. Common metrics include time to hire, revenue per employee, job satisfaction, and employee growth rate. Tracking additional metrics such as training efficiency and revenue per employee can also help you <\/span><b>quantify the return on the investment you make in your workforce<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whichever HR metrics you choose to track, your people analytics strategy should have <\/span><b>three main objectives<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Help you make data-driven strategic decisions about your business.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Enable your HR leaders to access valuable insights into your workforce so that you can improve your HR processes and activities.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Provide you with benchmarks to measure your progress towards meeting your defined business objectives.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So, why are people analytics so important? What are the specific benefits of regularly tracking and analyzing your core HR metrics?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Put simply, tracking the right people analytics <\/span><b>helps you make better decisions about your organization<\/b><span style=\"font-weight: 400;\">. It\u2019s about <\/span><b>understanding the people who work for you and how they impact your business operations<\/b><span style=\"font-weight: 400;\">. By analyzing KPIs relating to your staff you can measure the value that your policies and procedures are providing and identify areas for improvement. And this, in turn, helps you <\/span><b>improve the employee experience, boost performance, satisfaction, and engagement, and achieve your goals as a business<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><strong>11 Valuable People Analytics HR Metrics\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">There are a number of different KPIs that you might need to track depending on the nature of your business. However, generally speaking, there are <\/span><b>11 specific HR metrics that all businesses should be monitoring on a regular basis<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These <\/span><b>core HR metrics<\/b><span style=\"font-weight: 400;\"> help you ensure that your organization is running as <\/span><b>efficiently and profitably<\/b><span style=\"font-weight: 400;\"> as possible:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">eNPS<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Time to hire<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Diversity<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Labor turnover<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Job satisfaction<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Overtime expense<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Training efficiency<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Manager effectiveness<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Quality of work<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Employee growth rate<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Revenue per employee<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at these valuable people analytics in a bit more detail.<\/span><\/p>\n<h3><strong>eNPS\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The Employee Net Promoter Score (<\/span><a href=\"https:\/\/factorialhr.com\/blog\/enps\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">eNPS<\/span><\/a><span style=\"font-weight: 400;\">) is a valuable HR metric used to <\/span><b>calculate the level of employee engagement in your company<\/b><span style=\"font-weight: 400;\">. It can help you determine <\/span><b>how happy your employees are and how committed they are to your organization<\/b><span style=\"font-weight: 400;\">. If you measure the metric over time, you can also get <\/span><b>valuable insights into the impact of any organizational changes<\/b><span style=\"font-weight: 400;\"> you may have implemented. You can then use the feedback you collect to develop strategies to <\/span><b>improve your employee experience and boost engagement<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process for calculating your eNPS is simple. You just have to share a <\/span><b>survey <\/b><span style=\"font-weight: 400;\">with your employees consisting of one key question: \u201c<\/span><b><i>How likely are you to recommend your workplace to your friends and family on a scale of 0-10?<\/i><\/b><span style=\"font-weight: 400;\">\u201d (With 10 being extremely likely and 0 being not likely at all). Employees who score a 9 or 10 are known as <\/span><b>promoters <\/b><span style=\"font-weight: 400;\">(happy employees). Those who score a 7 or 8 are <\/span><b>passives <\/b><span style=\"font-weight: 400;\">(neutral). And those who score between 0 and 6 are <\/span><b>detractors <\/b><span style=\"font-weight: 400;\">(unhappy employees).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The easiest way to distribute your surveys and calculate your company\u2019s eNPS is by using the <strong>Factorial eNPS app<\/strong>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a video with a bit more information on how you can calculate your eNPS:<\/span><\/p>\n<p><iframe title=\"How to Calculate Employee Net Promoter Score\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/0gi38I9y6Ok?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h3><strong>Time to hire\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Another important people analytics metric is your <\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-to-hire\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">time to hire<\/span><\/a><span style=\"font-weight: 400;\">. This is a KPI that you can use to <\/span><b>measure how effective your hiring process is<\/b><span style=\"font-weight: 400;\">. This is important because if your hiring process is too slow, then you\u2019re more likely to lose candidate interest and limit your team\u2019s productivity. <\/span><b>Reducing your time to hire, in contrast, can improve the candidate experience as well as your company\u2019s employer brand<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Calculating your time-to-hire metric is simple. You just need to <\/span><b>calculate how many days pass between receiving a successful candidate\u2019s application and them accepting your job offer<\/b><span style=\"font-weight: 400;\">. So, for example, if you post a job on day 1, a candidate applies on day 5, and they accept your offer on day 30, then your time to hire is 25 days (30-5). Then, if your time to hire is too long, you can implement measures to help your hiring process run more efficiently so that you can attract quality talent to your business.<\/span><\/p>\n<h3><strong>Labor turnover\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Keeping track of your labor turnover helps you evaluate how well you are able to retain your employees. This HR metric is very important as it <\/span><b>reflects the overall health and stability of your company<\/b><span style=\"font-weight: 400;\">. If your turnover is too high, then it suggests that your employees are not happy. And this can have a direct impact on overall productivity and engagement. It can also <\/span><b>damage your employer brand and reputation and prevent you from hiring top talent<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your labor turnover, you need to know the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The number of employees who left within a given period<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The average number of total employees within the same period<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve collected this data, you can use the following formula to calculate your current labor turnover:<\/span><\/p>\n<p style=\"text-align: center;\"><b>Labor turnover rate (%) = (number of leavers\/avg. number of employees) x 100\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If the figure you get is high, you can then work on identifying the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/causes-high-turnover-rate\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">causes of your high labor turnover<\/span><\/a><span style=\"font-weight: 400;\">. Then, once you\u2019ve implemented corrective measures, you can evaluate your rate over time to see what sort of an impact they are having on your retention and turnover levels.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/turnover-calculator\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-75459 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/08\/07163335\/Turnover-calculator-banner-1-300x103.jpg\" alt=\"turnover calculator\" width=\"822\" height=\"282\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/08\/07163335\/Turnover-calculator-banner-1-300x103.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/08\/07163335\/Turnover-calculator-banner-1-768x263.jpg 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/08\/07163335\/Turnover-calculator-banner-1.jpg 900w\" sizes=\"(max-width: 822px) 100vw, 822px\" \/><\/a><\/p>\n<h3><strong>Diversity\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Aside from keeping track of how many people work at your organization, it\u2019s also important to <\/span><b>make sure that your workforce is diverse and inclusive<\/b><span style=\"font-weight: 400;\">. Including <\/span><a href=\"https:\/\/factorialhr.com\/blog\/diversity-metrics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">diversity metrics<\/span><\/a><span style=\"font-weight: 400;\"> in your people analytics model can be a great strategy for achieving this.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Diversity metrics are the measurable numerical values that help HR identify workforce demographics and assess the efforts of the company towards inclusive practices. As with other HR metrics, <\/span><b>diversity metrics allow you to gain insight into your workforce and the overall health of your company<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first step with diversity metrics is understanding which ones are of the most value to you according to the specific characteristics of your workforce. Essentially, this means <\/span><b>evaluating the demographics of your organization to determine where there is room for improvement<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, there might be a notable gender imbalance in certain departments, or you might uncover an issue with age bias that you need to address. You should <\/span><b>pay particular attention to diversity metrics that relate to hiring, promotion, employee satisfaction, and retention<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a video with a bit more information on the importance of DEI data:<\/span><\/p>\n<p><iframe title=\"The Importance of DEI Data\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/r_H2IP7ql4Q?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h3><strong>Job satisfaction<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">One of the most essential HR metrics for your business relates to job satisfaction, also known as <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-satisfaction\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">employee satisfaction<\/span><\/a><span style=\"font-weight: 400;\">. Job satisfaction is how happy an employee is in their role. Your overall job satisfaction rate reflects your employee experience as well as the attitudes of your workforce towards your business. <\/span><b>The higher your job satisfaction rate is, the more likely you are to have an engaged and committed staff that strives to help you meet your organizational objectives<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The job satisfaction metric is influenced by a number of aspects. These include <\/span><b>working conditions, the relationships between employees and managers, the employee benefits you offer, and the clarity of your job descriptions and responsibilities<\/b><span style=\"font-weight: 400;\">. It\u2019s important to work on improving all these areas. That way, you can improve your overall employee experience and develop a more satisfied workforce.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to measure job satisfaction is through regular <\/span><b>employee pulse surveys<\/b><span style=\"font-weight: 400;\">. These are brief surveys consisting of short, open-ended questions. The idea is to send them out on a regular basis. That way, you can keep your finger \u2018on the pulse\u2019 of employee sentiment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other important metrics that reflect employee satisfaction include <\/span><b>turnover and absence rates<\/b><span style=\"font-weight: 400;\">. Plus, you can also gather a lot of valuable feedback by conducting <\/span><b>regular employee reviews and appraisals<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h3><strong>Overtime expense HR metrics<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The overtime expense metric helps you keep track of <\/span><b>how much you are spending on overtime<\/b><span style=\"font-weight: 400;\">. Aside from helping you manage your <\/span><b>internal budgets<\/b><span style=\"font-weight: 400;\">, this HR metric is also valuable in terms of <\/span><b>employee engagement and productivity<\/b><span style=\"font-weight: 400;\">. This is because if your employees are regularly working long hours, they are at risk of <\/span><b>burnout and stress<\/b><span style=\"font-weight: 400;\">. Long overtime hours also often lead to <\/span><b>higher rates of absenteeism and increased turnover<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By monitoring your overtime expenses regularly, you can identify potential problem areas and implement measures to address them. These might include <\/span><b>outsourcing certain tasks, automating some of your work processes, or hiring additional employees<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h3><strong>Training efficiency HR metrics\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Training efficiency HR metrics help you evaluate <\/span><b>how effective your learning and development initiatives are<\/b><span style=\"font-weight: 400;\">. They also help you understand <\/span><b>how much you are investing in training<\/b><span style=\"font-weight: 400;\">, and whether the L&amp;D you offer is <\/span><b>driving the desired effects and boosting business performance<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can focus on a number of aspects here:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The number of employees who successfully complete training.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Training assessment pass\/fail rates.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How employee performance evolves as a result of training.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The impact of training solutions on your overall KPIs and objectives.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Financial return ratios.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are a number of methods you can use to determine how efficient the training you offer is. You can share <\/span><b>post-training quizzes or tests, track training goals with specific benchmarks, or share self-assessment questionnaires<\/b><span style=\"font-weight: 400;\">. You can also collect <\/span><b>informal feedback<\/b><span style=\"font-weight: 400;\"> from peers and managers or conduct on-the-job observations to determine how training has impacted an employee\u2019s performance. All this will help you establish <\/span><b>whether you are getting the ROI you need from your L&amp;D programs<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><strong>Manager effectiveness HR metrics<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In order to grow and develop as a business,<\/span><b> it\u2019s important to have the right managers leading your teams<\/b><span style=\"font-weight: 400;\">. And this is why it\u2019s essential to include manager effectiveness in your HR metrics dashboard.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Put simply, manager effectiveness is <\/span><b>the ability of your leaders to help your company reach its goals<\/b><span style=\"font-weight: 400;\">. It also takes into account <\/span><b>how effective a manager is at supporting employee development and managing employee expectations<\/b><span style=\"font-weight: 400;\">. And this requires a range of skills including <\/span><b>leadership, communication skills, decision-making, and mentoring<\/b><span style=\"font-weight: 400;\">. It\u2019s also vital that your managers understand what their roles entail and what you expect from them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are a few examples of different <\/span><b>HR metrics you can use to measure manager effectiveness<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Turnover and retention per manager<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Engagement scores per manager<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Absenteeism per manager<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Team performance metrics<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Management performance review results (including 360 appraisals)<\/span><\/li>\n<\/ul>\n<h3><strong>Quality of work HR metrics<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The increasing popularity of remote and hybrid working models that we have seen since the pandemic has <\/span><b>changed the way companies measure employee performance<\/b><span style=\"font-weight: 400;\">. Instead of focusing on hours in the office and employee behavior, many organizations are now evaluating quality of work by measuring specific outcomes with clear performance metrics. As a result, <\/span><b>tools like the 9-box grid are being used more often for talent mapping and measuring performance<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 9-box grid, also known as the 9-box assessment model, is a <\/span><b>talent management tool used to analyze and compare employee work performance and potential<\/b><span style=\"font-weight: 400;\">. It helps managers identify future leaders. The 9-box can also be used to <\/span><b>reevaluate talent placement, improve succession planning, and identify performance issues and talent gaps<\/b><span style=\"font-weight: 400;\">. It facilitates employee growth and contributes to retention, engagement, and productivity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the 9-box grid, you map your employees against <\/span><b>two axes<\/b><span style=\"font-weight: 400;\">: <\/span><b>current performance and future potential<\/b><span style=\"font-weight: 400;\">. Where each employee falls on the grid will depend on their combined score. The higher the score, the more potential for growth. This information can then be used to <\/span><b>strategically develop employees for future positions within the company<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h3><strong>Employee growth rate\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Your employee growth rate is an HR metric that reflects<\/span><b> how much a company is either growing or shrinking according to its number of employees<\/b><span style=\"font-weight: 400;\">. This is an important metric to monitor for a number of reasons. Firstly, it helps you determine <\/span><b>if your workforce is increasing in line with projected growth<\/b><span style=\"font-weight: 400;\">. If it\u2019s not, then it could suggest that you have an issue with employee retention. Secondly, it\u2019s a great tool for <\/span><b>succession planning<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your employee growth rate for a specific period (a quarter or a year, for example), you just need to <\/span><b>calculate an employee headcount at the start of the period<\/b><span style=\"font-weight: 400;\"> (\u201cPoint A\u201d) <\/span><b>and at the end of the same period<\/b><span style=\"font-weight: 400;\"> (\u201cPoint B\u201d). You then subtract the headcount at Point A from the headcount from Point B, then divide this figure by your original Point A headcount. Once you\u2019ve done that, simply multiply your result by 100 to represent it as a percentage.<\/span><\/p>\n<h3><strong>Revenue per employee\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The last of all the HR metrics we are discussing today is <\/span><a href=\"https:\/\/factorialhr.com\/blog\/revenue-per-employee\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">revenue per employee<\/span><\/a><span style=\"font-weight: 400;\">. This metric reflects <\/span><b>how much revenue the average employee is generating for your business<\/b><span style=\"font-weight: 400;\">. You can calculate this by measuring the total revenue that your organization generates over a given period (usually a year), then divide this figure by your current number of employees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can then use your results to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Determine the efficiency and productivity of the average employee at your company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Compare revenue per employee year-on-year to see if there are any notable changes.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Track the performance of your employees (the lower the ratio, the more likely you are to experience losses such as an unexplained high turnover rate and increased labor costs)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Evaluate any historical changes within your organization so that you can make improvements to your operations and encourage growth through the right hiring practices, training, and retention programs.<\/span><\/li>\n<\/ul>\n<h2><strong>Tracking HR Metrics with Factorial\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Tacking the right HR metrics is great, but in order to get the most from the process, <\/span><b>you need to analyze your metrics in the right way<\/b><span style=\"font-weight: 400;\">. You also need to create an effective system so that you can collect all the people analytics data you need and access insights in real-time. That way, you can <\/span><b>use your data to predict future behaviors, measure the impact of any changes you make to your HR processes, and make better informed strategic decisions about your business<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where advances in workplace technology and data management tools can help you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These days, instead of relying on intuition and manual processes for collecting employee data, most companies use <\/span><b>HR analytics software<\/b><span style=\"font-weight: 400;\">. The right software can <\/span><b>streamline your HR metrics data collection processes<\/b><span style=\"font-weight: 400;\"> and give you access to the tools you need to accurately <\/span><b>track, analyze, and interpret your data<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you are using <\/span><b>Factorial\u2019s human resources software<\/b><span style=\"font-weight: 400;\"> then you will already have access to <\/span><b>customizable and scalable reports and dashboards to help you with this<\/b><span style=\"font-weight: 400;\">. Moreover, Factorial automatically generates these reports from the information already introduced by you and your employees. This saves you a lot of time as there\u2019s no need to manually enter your data. You can then use these <\/span><b>custom HR reports<\/b><span style=\"font-weight: 400;\"> to create <\/span><b>effective benchmarks <\/b><span style=\"font-weight: 400;\">so that you can make informed decisions about your future business strategies. And, best of all, you can visualize your metrics and manage your reports straight from your own <\/span><b>HR dashboard<\/b><span style=\"font-weight: 400;\">. All this makes it much easier to <\/span><b>stay on top of your HR metrics so that you can generate the insights you need to grow your business<\/b><span style=\"font-weight: 400;\">. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the key roles of HR is to continuously monitor the way an organization is running to ensure that all processes and resources are performing as efficiently and productively as possible, especially in terms of a company\u2019s employees. The best way to do this is by tracking and analyzing the right HR metrics. When<a href=\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":88530,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[347],"tags":[],"class_list":["post-88527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-management"],"acf":{"topics":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>11 key HR metrics you should be measuring | Factorial<\/title>\n<meta name=\"description\" content=\"Essential HR metrics that you need to include in your people analytics strategy in order to boost employee engagement and productivity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"11 key HR metrics you should be measuring\" \/>\n<meta property=\"og:description\" content=\"Essential HR metrics that you need to include in your people analytics strategy in order to boost employee engagement and productivity.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/people\/Factorial\/100064908455810\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-13T20:29:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-16T13:48:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/12\/13221058\/HR-metrics.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"830\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cat Symonds\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialapp\" \/>\n<meta name=\"twitter:site\" content=\"@factorialapp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cat Symonds\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"13 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/factorialhr.com\/blog\/hr-metrics\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\"},\"author\":{\"name\":\"Cat Symonds\",\"@id\":\"https:\/\/factorialhr.com\/blog\/#\/schema\/person\/39a0e312e3aae9ac2b6461196e8b1620\"},\"headline\":\"11 key HR metrics you should be measuring\",\"datePublished\":\"2022-12-13T20:29:59+00:00\",\"dateModified\":\"2022-12-16T13:48:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\"},\"wordCount\":2686,\"publisher\":{\"@id\":\"https:\/\/factorialhr.com\/blog\/#organization\"},\"articleSection\":[\"People Management\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\",\"url\":\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\",\"name\":\"11 key HR metrics you should be measuring | Factorial\",\"isPartOf\":{\"@id\":\"https:\/\/factorialhr.com\/blog\/#website\"},\"datePublished\":\"2022-12-13T20:29:59+00:00\",\"dateModified\":\"2022-12-16T13:48:20+00:00\",\"description\":\"Essential HR metrics that you need to include in your people analytics strategy in order to boost employee engagement and productivity.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/factorialhr.com\/blog\/hr-metrics\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/factorialhr.com\/blog\/#website\",\"url\":\"https:\/\/factorialhr.com\/blog\/\",\"name\":\"Factorial\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/factorialhr.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/factorialhr.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/factorialhr.com\/blog\/#organization\",\"name\":\"All-in-one business management software - 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