We live in a world that is increasingly driven by data. How we collect and measure that data can be the difference between success and failure in the business world, especially when it comes to HR metrics. In our new white paper, 6 Cutting-Edge HR Metrics to Measure, we outline the most important HR metrics available to HR professionals. We will also guide you in your calculations and help you use the data you have available to improve your organization and revolutionize your HR department.
What Are the Most Important HR Metrics?
Our white paper explores the critical compensation and HR metrics you and your team should add to your repertoire. From the prep work to the actual calculations, we can help empower you to be a bonafide HR data scientist.
Based on our research, we’ve determined there are six most important HR metrics you should prioritize.
- Quality of Hire: How do you currently score hiring decisions? In this guide, we can help you determine the best way for your company to calculate quality of hire, based on how your company measures performance. You will begin by identifying your company’s most valued characteristics of a new hire and, from there, move toward calculating the specific quality of hire score for your organization.
- Career Path Ratio: While quality of hire focuses on new recruits, career path ratio is all about your current employees’ mobility within your organization. How does career path ratio impact turnover rate? This guide will help you dig deeper into this HR metric to determine if employees are stagnating or if you are enabling them to develop their careers and move up within your organization.
- Top Performer Retention Rate: As an HR professional, you understand attracting talent is one battle and retaining that talent is an entirely different war. That’s where top performer retention rate comes into play. Retention doesn’t just mean the opposite of turnover—retention is an HR metric that measures who stays. Here’s a clue: new hires don’t factor into the calculation, meaning your statistics just includes the employees who were already in place at the beginning of your calculation. That distinction is critical, and in many ways makes retention the superior metric. Learn how to calculate this HR metric and what your results mean for your organization.
- Comp Ratio: This HR metric boils down to a very simple question: are your employees overpaid or underpaid? The answer is specific to your organization and depends on a number of factors. Learn how to calculate your comp ratio and use the results of your calculation to determine which of your employees could be a flight risk, and much more.
- Range Penetration: Range penetration is a compensation metric you should look at in tandem with a comp ratio. While comp ratio gives you information about someone’s pay relative to just one data point — the range midpoint, range penetration looks at salary in relation to the whole pay range. Calculating range penetration as an important HR metric because it is an easy way to communicate to employees about where their compensation stands in their range and whether there’s room for increase.
- Pay Disparities and Pay Equity: A pay disparity occurs when two people in the same job or very similar jobs have a large variance in pay. That difference can occur for a variety of legitimate (and illegitimate) reasons. Organizations need to understand if pay disparity is a problem, rectify the differences in pay they discover and put guidelines in place when making pay decisions to prevent this from happening in the future. To understand whether your organization has issues with pay disparity, you can run a pay equity audit. Learn how by downloading a copy of the white paper.
HR Metrics Pave the Way to Organizational Success
Being particular and intentional about the HR metrics you measure can help move your organization forward and increase retention of your top talent. Learn more by downloading the full white paper, 6 Cutting-Edge HR Metrics to Measure, today.
TELL US WHAT YOU THINK
What HR metrics have you prioritized in the past? We want to hear from you. Tell us your story in the comments.