Have you ever heard of HR performance indicators? Also known as Key Performance Indicators KPIs, they allow you to visualize and measure your company’s human resources management performance over time.
In this article we present essential key figures, their calculation methods and their strategic advantages for your company.
1) Turnover rate: to reduce the cost of voluntary departures
This metric determines how many employees have left your company in a certain period of time. The calculation is simple: (Number of employees who left) / (Total number of employees) x100.
If your turnover rates are high, you need to act strategically to improve engagement in your company and reduce the costs associated with employee departures.
By regularly calculating your turnover rates, you can manage waves of attrition before they impact your company’s productivity and the resources you invest in recruiting.
2) Recruitment costs: to hire faster and more efficiently
The calculation of this HR indicator is as follows: (Total budget invested in recruitment) / (Number of recruits). The goal here is to increase the efficiency of your hiring processes by reducing the time and resources spent searching for that rare gem.
By calculating your recruitment costs, you can optimize your practices in this area: job posting, interviews and even the process of welcoming and integrating new employees!
3) Retention rate: to retain your employees and increase their motivation
Your retention rate corresponds (Number of employees remaining in their posts) / (Total number of employees) x 100.
If your retention rates are low, you need to rethink your onboarding and onboarding strategies, as well as your day-to-day employee management. Employee retention is a priority for many employers for a reason: voluntary departures are expensive for your company, and engaged employees are more productive.
4) Absenteeism rate: to avoid loss of productivity due to repeated absences
To determine your absenteeism rate, you need to do the following calculation: (Total number of absences) / (Number of days worked) x100.
A high absenteeism rate hides increasingly deeper problems that you must identify and resolve to avoid the costs and workload imbalances that come with repeated absences. Given that Absences can cost up to 5% of your payrollThe ability to calculate and reduce this rate is a significant advantage for your business.
“If you can’t measure it, you can’t improve it.” This quote from Kelvin applies perfectly to HR performance indicators, which are simply essential for optimizing your management processes.
To benefit from these tools, you need to invest in human resources management software that offers HR reporting and KPI functions. Your indicators will be automatically calculated and you will receive one Visibility of their progress over timeand all with just a few clicks!
Article written by Morgane Lança, Content Manager and Editor at Folks