HR Metrics That Every Team Needs To Track
For a modern company there is an incredible amount to think about. To be successful there needs to be a razor sharp focus on the customer. What does the customer need? How can you fulfill that need in a profitable way?
There is a litany of online reading on the metrics to track that measure how well you’re doing your job in that respect.
But what about your team?
It’s often said that people are the most important part of your business.
So how should you be measuring success with your team?
Employee Turnover (%)
Starting with the obvious one.
Measure the number of team members leaving each month as a percentage of the total headcount.
It’s a good lagging indicator of the ability of the company to create a great place to work. This needs to be tracked on an on ongoing basis.
Important caveat; how are you defining turnover here?
It’s important to exclude turnover that might be happening for reasons outside of your control. If someone is relocating to another city because their spouse has a new job (involuntary turnover), be sure to exclude.
eNPS (employee Net Promoter Score)
Net Promoter Score (NPS) is all the rage in Silicon Valley. Quite simply, it’s a rating from 1-10 on how likely a customer is likely to recommend your product or service to a friend.
It separates the casual fans from the people that are truely loving what you do. A customer might be satisfied with your service - but a true testament to the value you’re providing comes from their willingness to recommend that service to a friend.
Employee Net Promoter Score (eNPS) is exactly the same, except it measures how willing your team would recommend working for your company to a friend.
Send it out quarterly and see the results.
It’s a true test. If your team are willing to recommend working for your company to their nearest and dearest you must be doing something right!
Time to Hire
Knowing how long it takes to fill vacancies is hugely important to the rest of the company.
Hiring can often be the first domino that needs to fall for benefits to cascade across the company.
For a growing business team leaders need to know predictably when reinforcements are going to arrive. This affects the company’s goals, timelines on those goals, which can affect revenue, cash-flow, etc.
Sick day count
Measure monthly - another relatively obvious one.
Big thing here is looking for anomalies. You’d expect it to be fairly standard across the board but look out for the multiple absences that indicates a team member needs support.
Any mental health issues are likely to be spotted first in this metric. Keeping an eye out for everyone’s well being is a task that is worthy of constant effort and vigilance.
Holidays taken / untaken
Be proactive in measuring this. Have a system in place that tracks it automatically.
The best HR teams in the UK keep track of this in order to proactively encourage team members to utilise their time off allowance. Particularly something to look out for around September, while there is still time in the year for team members to take some well earned rest.