HR Metrics for 2024 That Teams Need to Know

HR metrics are quantifiable measures that offer valuable insights into various aspects of the workforce, such as recruitment, employee engagement and performance. 

By tracking and analysing these metrics, HR professionals can:

• Gain a deeper understanding of their workforce: HR metrics provide a clear picture of employee demographics, skills and satisfaction levels, enabling HR to tailor initiatives to specific needs and challenges.

• Identify areas for improvement: Metrics can identify inefficiencies in processes, talent gaps and areas where employee wellbeing needs attention. This allows HR to focus their efforts on areas with the highest impact.

• Measure the effectiveness of HR initiatives: Given the right data, HR professionals can assess the success of their strategies, such as training programmes, engagement campaigns and retention efforts. 

• Make data-driven decisions: HR professionals can move beyond intuition and make informed decisions based on data. This strengthens their credibility and fosters a culture of data-driven decision-making within the organisation.

While the concept of DE&I is broad, the metrics used to measure progress can be quite specific. These can include:

Most important, what you’ll find in this group are metrics that are reactive (identifying existing pay gaps, for instance) and those that are more proactive (like gauging sentiment to roll out new initiatives). Striking this balance is critical. 

Your eNPS remains a valuable metric, as it can help you gauge employee sentiment, potential turnover and retention overall. The first thing to know is that you should track it, but that you can also augment it. 

Consider supplementing your eNPS with more specific metrics, including: 

The trickiest part of thinking through your eNPS is keeping in mind that it is only one metric and it often lacks real, qualitative insights. To assist with that, consider the above to build out the “universe” of your eNPS. 

Many organisations implement skills gap analyses to get a read on the skills their organisations are missing. That said, for this metric to be effective it also needs to be a bit reflexible. Instead of focusing solely on gaps, consider: 

How do you go about measuring proficiency? For roles that aren’t as quantifiable, this often results in rating employees in coordination with line managers. While this is a subjective measure, it can definitely paint a clearer picture. 

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L&D programmes are often the subject of increased scrutiny when it comes to return on investment (ROI). The truth is that the impact of L&D is incredibly tangible, but your teams need to focus on how you tell that story through data. 

To communicate the efficacy of your programmes, keep these metrics in mind: 

The trickiest part of remote work is ensuring that you don’t engender a culture of presenteeism or employee monitoring. Neither of these are going to truly rate or improve your remote work effectiveness. 

Instead of generic productivity measures, keep these in mind:

Your cost per hire includes the entire amount it takes to bring someone into your organisation. This includes things like salary, benefits, time invested, hiring infrastructure, software costs, relocation fees and more. 

The problem here is that cost per hire can quickly become a monolithic metric, meaning that it’s virtually impossible to decipher and figure out where you could make improvements. Here are some ways to help add focus: 

Organisations are always looking for ways to hire faster. When it comes to time to hire, otherwise known as the average time taken to fill a role, consider the following: 

The fact of the matter is that it takes time to hire great talent, and sometimes you can’t really negotiate or change that. That said, an effective applicant tracking system (ATS), like the one Personio offers, can have an outsized impact. 

It can streamline the stages of the interview, keep in touch with candidates via built-in automations and turn candidates into employees in only a few clicks. All of that, and so much more to help your teams do great HR and recruitment work.  

Being able to track employee wellbeing has proven difficult for organisations. While you can track things like healthcare benefits usage, the trick of this metric is that you need qualitative data to understand the wellbeing of your workforce. 

So, looking beyond just healthcare utilisation, we should keep in mind:

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Too often organisations treat retention as a singular metric. It’s either high or its low when, truth be told, not all retention is the same. While focusing on it is important as a “big rock,” organisations would be wise to build this metric out with: 

The people analytics function of your organisation is only going to become more important. Now more than ever, HR professionals need to be equipped with the data that they need to make truly data-based decisions. 

To assess the maturity of the data function within your HR team, consider: 

Personio’s HR software takes the need for data incredibly seriously. We’ve built out an analytics and reporting feature that is second to none, and helps give your team access to the data they badly need – when and however they need it. 

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By leveraging any of these tangible and actionable HR metrics, HR professionals can gain valuable insights into their workforce, identify areas for improvement and make data-driven decisions that contribute to unlocking the power of your people. 

Learn more about data-based decision-making with Personio, or skip ahead and speak with one of our experts right now to bring more HR metrics to your organisation.