Human Resources (HR) is a tricky business. With responsibilities like payroll, employee orientation, dispute resolution, recruitment, and talent acquisition, it’s safe to say your HR department weighs heavily on the overall success of your company. Unlike other departments, such as sales, smart decision-making doesn’t always lead to immediate revenue for HR. The payback can be slow. Promoting a promising employee, for example, may seem prudent, but the tangible benefits may not become apparent for some time. Simply put, your HR department needs clear-cut, accurate data to forecast decisions and predict payoff.Your #HR department needs clear-cut, accurate #data to forecast decisions and predict payoff. Click To Tweet
How to Identify Problem Areas: Finding the Right HR Data Sets
Churn rate, for many HR departments, is a big challenge. By increasing retention and decreasing turnover, you can keep high-performing employees and avoid low points in productivity brought on by orientation and training. If your organization is growing, decreasing churn is even more important to make sure the number of established workers balances the new ones. Churn isn’t the only thing HR professionals should pay attention to, though.
Other important HR metrics are:
• Average Employee Revenue
• Overall Employee ROI (Return On Investment)
• HR Staff to Employee Ratio
• Rate of Promotion
ROI refers to the total cost invested in an employee compared to the profit he/she brings to your organization. If you’re looking to build up your HR department’s success, start with employee revenue and ROI. These two metrics will help you answer the question, “Are employees helping us bring in more money than we spend on them?” If your ROI is in the red, you’ve found a good place to start rethinking your HR strategy.
Similarly, promotion rate and your HR-to-employee ratio can help you identify problem areas. If your human resources lacks the manpower to evaluate and stay on the forefront of your HR metrics, you may need to expand your team. On the other hand, a dilated HR team could lead to micromanagement. With too many cooks in the kitchen, it’s easy to focus on the minute details of company process in spite of the bigger picture.
Read next: How to Create an HR Balanced Scorecard
Workforce data is better than ever, but are you wasting it?
In many ways, some HR duties have gotten easier with time. Things like legal compliance, recruiting research, and performance management are now digitized – almost completely. Data is everywhere, accessible at any time. Using data in a way that moves your organization forward is a different story, though. That’s why HR professionals have to do more than gather information; they have you manage it.
Why use data visualization in HR?
• Reports and statistics are easy to access and digest
• You can get real-time information for immediate decisions
• Visualizing HR data takes the confusion out of interpreting numbers
• It allows you to see connections between statistics
• It helps you absorb more information, faster
Imagine a scenario where your company wants to decrease its turnover rate. Predicting (and preventing) turnover involves quite a few steps, such as gathering data from exit interviews and identifying common trends among people who choose to leave your company. Finding these commonalities and creating a plan to eliminate them takes time – no one’s arguing that. However, you can significantly decrease the time it takes to compare metrics by compiling them in one place, with an easy-to-understand format through HR data visualization.You can decrease the time it takes to compare #HR #metrics by compiling them in one place. Click To Tweet
Revamp Your Strategy with HR Dashboards
At iDashboards, we live to see our customers succeed. We believe that informed decisions are – more often than not – good decisions. At the very least, and informed decision is a better one. If you’re ready to kick-start your HR dashboard project and meet your organization’s goals, get in touch with a member of the iDashboards team today – or get started now by taking our software for a test drive.
What metrics are most important to your HR department? Start the discussion by sharing this post on social media or passing it along to an HR professional in your company!