In this blog, will walk through how hr analytics is benefial in hr processes.
Time to hire
TAT is a metrics for HR analytics to measure the efficiency of the recruitment process of the organization. Recruitment process requires time. It measures the time frame invested between the interview and the acceptance of the job of the candidate. It is difficult to analyze a candidate for their caliber and potential. TAT analytics helps in analyzing the time frame required by the HR team to scale out the best fit candidate for the organization.
Cost per hire
Cost per hire determines the cost an organization invests in each employee since the team decided to open a vacancy for a designated role. Application such as expense management software keeps a track on such expenses. it can determine the accurate amount that an organization invests in each employee. It includes expenses such as recruitment, relocation, transportation and benefits as well.
Offer ratio
The next metric that comes in que is the ratio that indicates the total number of candidates that get selected. It notifies the numbers of the offer letters sent to the candidates and the number of candidates who accept the offer letter agreeing to join the organization.
The lower ratio of the applicants joining the organization highlights the need to introduce certain changes to attain more acceptance on the offer letter.
Turnover rate
The first question that pops in mind is what is the turnover rate?
Turnover rate in HR metrics is indicated to the percentage of the employees leaving the organization within a specific period of time. The time period is usually considered to be twelve months. The turnovers can be either voluntary or involuntary.
Voluntary turnover refers to employees leaving the organization after resigning from the position in lieu of better opportunities.
Involuntary turnover indicates a decrease in workforce after violation of policies or low performance leading to termination or suspension of the employees.
Turnover rate has a crucial role to play as it assists in measuring the potential of employee engagement.
Turnover cost
Whenever an employee quits the organization, irrespective of any reason be it voluntary or involuntary entails a certain amount of expense. Once the employee leaves the organization, it creates a gap in the workforce which may result in delay. The cycle of recruitment, selection and training to replace the employees who left. Organizations can analyze employee engagement policy to ensure longer reign of the workforce to minimize such expenses.
Achievement of goals
This is a critical yardstick to analyze the workforce performance. There are various factors that adversely affect the performance curve. Devising a well developed plan to support the employee in dealing with such struggles can help improve. It can help the HR team to provide resources in terms of technology.
Revenue ratio
Revenue ratio is the metric ratio between the compensation of the organization and annual salaries of the employees and sales. This metric helps in making a calculated decision on deciding if the company can afford a bonus. Raise or any other expenses.
These metrics help in maintaining a thorough record on expense management software. It provides a better insight to the HR team for expenses of the organization.
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