The 4 Metrics You Must Track (And What to Do With Them)

Historically, human resources hasn’t exactly been high on the list of departments that make use of metrics. But in an age where we have more access to data than ever, there’s no reason it should stay that way. If we in the HR world truly want to create stronger, more productive organizations, it’s time we become metrics evangelists as well.

For many of us, though, the overwhelming amount of information available can provide a real barrier to entry. With so many different data points to track, which ones should you pay attention to? Of course, every company has different needs, and data will vary accordingly, but I can say that during my time as an HR leader in a number of different companies, I’ve come to rely on the following four metrics above all else.

1. Employee engagement

Tools that monitor employee engagement have gotten a lot of buzz in recent years, and they can be a great asset. But don’t be discouraged if you don’t have access to one — all it really takes to monitor engagement is anonymous employee surveys, which can be executed with any number of free, online platforms. Keeping surveys short and sweet (around 3-5 questions) will help you get a higher participation rate and more thoughtful answers. Which particular questions you should ask will depend on what you’re really curious about, but a few I like to use are:

  • Do you feel that your work makes a significant impact?
  • Are you willing to go above and beyond in your job?
  • How likely are you to recommend working at this company to a peer?

Tracking the answers to questions like these and measuring trends over time will help you identify where you’re succeeding and what you still need to work on. A word of warning, though , checking in with your employees too often can lead to burnout and inauthentic answers, so limit engagement surveys to every 6 months or so. That way, you’ll also have allowed enough time to pass so that you can measure the impact of specific initiatives, like rewarding high performers or instituting a mentorship program.

2. Performance

To accurately measure performance, you’ll need to think beyond numbers alone. Sales teams, for example, are often judged solely on whether or not they reach their quotas. But just because somebody’s consistently hitting their numbers doesn’t mean that they’re fully living up to their potential. So in addition to taking hard metrics into account, make sure to get together with managers and business leaders across the organization to determine how you define performance in qualitative terms. Ask yourselves a few questions that help you determine the bigger-picture status of your company, like:

  • Are we meeting our business goals?
  • How quickly are new hires able to start working independently?
  • Are employees learning and growing their careers?
  • Do people have the information and resources they need to do their jobs?
  • Are we nimble with decision-making in response to the market or customers?

These are all tough questions that will require a lot of discussion before you can come up with honest and valuable answers. But once you reach agreement across departments, you’re that much closer to getting an accurate assessment and then acting on that insight to improve overall performance.

3. Recruiting funnel

Okay, I know, technically I’m cheating here since this is a collection of metrics rather than an individual one. But nonetheless, I’ve included it to emphasize how critical assessing each step of the recruiting process is. With recruiting taking place at almost any given time, it’s important to check in on your funnel metrics at least once a week. Fortunately, recruiting data are probably the easiest HR metrics to quantify and analyze.

The typical recruiting funnel encompasses five steps: career website visits, applications, interviews, offers, and finally, successful hires. Your targets at each stage will vary business by business, but it’s always helpful to take a look at industry benchmarks for comparison. A quick and easy way to track progress in your funnel at a glance is by color coding each step: green for exceeding expectations, yellow for meeting expectations, and red for below expectations.

Article Continues Below

After consistently keeping tabs on these over the course of several months, note where your problem areas are and think about how you might fix it. If career site views aren’t converting to applications, for example, you might want to consider adding more engaging visuals or employee testimonials. Or maybe you’re regularly seeing low offer acceptance rates; in that case, think about sending candidate surveys to figure out where you went wrong and correct it. With a little bit of insight and action, you might just find yourself bringing talent in more efficiently than ever before.

4. Turnover

Most organizations keep a record of how many people leave each year, but if that’s all you’re doing, you’re missing out on the complete picture. Instead of just keeping a running tally of the folks that leave, categorize each departure into distinct buckets. Many people classify employee exits as either involuntary (firings/layoffs) and voluntary, but it’s well worth the effort to break it down even further. Specifically, voluntary can be broken down into two categories: true voluntary and voluntary performance management.

True voluntary refers to when an employee leaves of their own free will, whether they’ve chosen to pursue a different opportunity or outside circumstances have led them to change their career plans. Voluntary performance management, on the other hand, indicates that an employee left after a performance issue was brought to their attention. This is a critical distinction to make, since HR managers can be lulled into a false sense of comfort by low involuntary turnover rates when, in fact, a significant amount of departures may indeed be performance-related. When looking at these departures, you’ll also want to indicate whether or not these departures were “regrettable” losses — key talent that not only performs highly, but also plays a critical role in the future success of your business. Take these nuances into account to get a more holistic view of how employees are performing and how you can keep employees within your company for the long haul.

The metrics outlined above are just the tip of the iceberg that is people analytics, but they also provide a great foundation for you to build on over time. Remember, though, that numbers are just half of the story — the best HR leaders have learned to drive results using their heads and their hearts in equal measure. But as long as you don’t forget the “human” in human resources when analyzing data, you’ll be on the right track to finding the best solutions for your organization.

Rachel Bitte is Chief People Officer at Jobvite (aka, head honcho of finding and keeping the geniuses who work there). As Jobvite’s Chief People Officer, Rachel brings with her a wealth of HR experience, particularly in the tech industry, with a focus on change leadership and talent management. Follow her on Twitter here.

Topics

2 Comments on “The 4 Metrics You Must Track (And What to Do With Them)

  1. The Time Tracker Enables You to Take a Break When It Is Really Needed

    When you work as a freelancer or run your own business, the last thing you want to do is to adopt corporate working style. The main goal, of course, is to get more freedom, not less. A time tracker can allow you to do that. You do, however, have to use it correctly.

    The first step is simply to start using it. This is often the hardest step, as most employees who switch to self-employment or small business ownership are not trying to recreate their former hourly employment-based existence. There are very good reasons to go ahead and start time tracking the work you put in on projects.

    Increased Pay

    For freelancers, “holidays” mean “lost pay”. This is why it’s so important to make sure you get paid what you’re due. Having the right accurate time tracker setup is a great way to make sure you don’t end up shorting yourself on hours.

    Shorting sometimes takes place because employees doing the work fail to track their time accurately and they don’t want to overbill. It can create a situation when good intentions make work a lot less commercial than it should be. The hours that are not billed for are lost and the money that should have come from the sweat put into work is not likely to ever be recovered.

    A CrocoTime time tracker allows you to track time very precisely. This can guarantee that you don’t put in abnormally long work days when they are not needful and, of course, it guarantees that you bill correctly for the time that you put in.

    This also increases the efficiency and accuracy of your bidding process. When you can look back and understand exactly who long a particular task took, it’s a lot easier to provide an accurate bid for same model of work in the future.

    Time When You’re Not Working

    For all freelancers or small business owners, it’s likely that they have to spend some of their time doing work that is off the clock. This can include research that is related to but not immediately billable to a project and so on. Tracking how much time you spend doing work is vital and can help to make better business decisions.

    For instance, imagine that you spent 2 hours studying a new software but that time was not billable to the project you were working on. This isn’t much time, but imagine that the “lessons” keep happening over and over again. Over time, you may end up having wasted many days on non-billable work.

    CrocoTime may help you to figure out whether or not it’s worth it to bid on some tasks. If the amount of side work that you’d have to do for main work would make the total pay for the job not worth it, you’ll know that at the outset rather than finding out after you’ve invested the time. This can help you to see when you should bid on a work or when the extra work it would entail makes it not worth putting in a bid at all. That time you don’t spend billing can be put toward something profitable rather than wasted on preparing for a task that isn’t going to pay well.

    Good subcontracting

    With a good time tracker, there really isn’t much of a studying curve involved. A good time tracker should also allow employees to share their data with others engaged in the same project.
    If you’re subcontracting a job out, having the subcontractors use the same time tracker can help to make sure that everyone in your team knows what everyone else is doing. This can remove redundant work and, in the worst case scenarios, may show when someone is trying to overbill for their work. If you see several employees being billed for the same task it’s an indication that there is a problem. If someone in a project’s team is billing hours but work doesn’t move forward as one would expect given work time put into it, it also indicates that there is some kind of mistake.

    A time tracker can secure you in cases where you end up paying for work that really wasn’t done or that didn’t need to be done and just served as a method for employee to fluff their hours.
    It’s important to track work time so that you know how you spend it. It’s also good to see when it’s time to rest for a while knowing that you’ve got something accomplished allowing you the mental space to relax, recharge and think about your family, hobby, etc.

    https://crocotime.com/en/

  2. First Article I have read about Metrics that made complete sense. These are true Objective qualifiers and Quantifiers the demonstrate employee loyalty; employee satisfaction; and ultimately company profit. I see too many trying to create subjective metric profiles on job positions, titles.. but don’t look at the most important aspects, that are not the same in different locations.. What is the management there like? what is the reputation of the company! How does the company treat the employees in that location. Wow.. Excellent article
    KM

Leave a Comment

Your email address will not be published. Required fields are marked *