When you notice that your employees are suddenly more or less productive or turnover is way up or down, do you have access to data insights to help you figure out why? If you’re monitoring important talent management metrics, you’ll be able to pinpoint potential causes and make informed choices about what to do next.
Talent management metrics give you a complete picture of how your employees are doing rather than just how productive they are. Looking at a variety of HR metrics allows you to make connections and identify patterns that are nearly impossible to pinpoint otherwise.
Track these 9 #TalentManagement metrics to dive deeper into how your employees are doing and build a better #EmployeeExperience:Do you want to get an in-depth understanding of how your talent management strategy affects your employees, replicate successful strategies, and improve the employee experience? These are nine talent metrics your human resources team needs to watch.
1. Absenteeism
Absenteeism is when an employee is chronically absent from work. Of course, employees need regular time off and sometimes may need to miss work with little or no notice. But when employees have an excessive number of unexcused absences, it creates a problem for your business.
Absenteeism reduces employee productivity and brings down morale. Imagine that one of your recruiters missed work several times per month without explanation. The rest of the team has to pick up the slack, putting in extra work to find and screen candidates or risk falling short of hiring goals. It’s likely that productivity will decrease and absenteeism cause frustration and resentment for the team.
To understand absenteeism, track different types of employee absences:
- Approved absences, like PTO, sabbaticals, parental leave, or medical leave
- Occasional unexpected absences, like sick days or bereavement leave
- Frequent, unexpected absences
When you have insight into different types of absences, you can better understand what might be driving absenteeism and address the root cause. Teams can also develop ways to prepare for when it happens to keep morale and productivity high.
2. Time to Start
Time to start sounds similar to other common HR metrics, time to hire, and time to fill, but it’s not the same.
- Time to fill refers to the length of time between when an open role is posted and when it’s filled.
- Time to hire refers to the length of time between when the best candidate applies and the date they sign an offer letter.
- Time to start refers to the time between when a job offer is signed and the new hire’s start date.
Keeping time to start down helps maintain employee productivity by getting new hires in the door fast. It’s also good for new hire engagement and retention, leaving them less time to accept a new offer or second-guess switching jobs.
Do you know why your #HR team should track Time to Start — and how it’s different from time to hire and time to fill? Find out:3. Time to Productivity
Time to productivity is the amount of time new hires need to become fully productive, taking on all duties and responsibilities of their role. Ideally, your employees achieve full productivity during their onboarding program. But if new hires are reaching full productivity before or after they finish onboarding, it could indicate an onboarding process that’s too long or too short.
You can track time to productivity by setting onboarding goals for new hires. Do your new hires easily achieve their goals on target, or are they way ahead of schedule? Understanding time to productivity enables you to build an onboarding program that sets the right pace and equips new employees for success, improving talent management processes.
4. Job Satisfaction Rate
Job satisfaction rate gives you an idea of overall employee sentiment. Are most of them happy with their roles and the company, or are many dissatisfied with some aspect of their work or company culture? You’ll never know if you don’t ask, and you’ll never be able to address their concerns if you don’t know what they are.
Send employee surveys to measure job satisfaction among your workforce and find out what’s impacting it — negative or positive. Well-managed employee surveys serve as a window into your workforce, revealing insights you can only get from their perspective. When you act on their concerns and make sure their needs are being met, you show employees that their voices are being heard, increasing their job satisfaction.
5. Healthcare Cost per Employee
Employee healthcare costs are one of the biggest expenses for most organizations. Calculating the cost of healthcare per employee helps your HR team budget accurately and ensures your company isn’t overpaying. Understanding the real costs of maintaining employee well-being helps your HR team choose cost-effective plans and providers that offer the coverage your employees want.
6. Cost per Hire
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The cost per hire refers to how much it costs to find, hire, and onboard a new employee.
You can analyze average cost per hire in many ways:
- Company-wide
- By department
- By role
To calculate the cost to hire accurately, consider these factors:
- Lost productivity due to unexpected turnover
- Time hiring managers and team members spend reviewing resumes, interviewing, and training new hires
- Cost of posting and advertising jobs
- Budget for specialty recruiting agencies
You can reduce cost per hire by:
- Preparing for unexpected turnover ahead of time
- Equipping hiring teams with Interview Guides and Scorecards for fast, fair interviews
- Using an applicant tracking system to manage job boards and access special rates
- Engaging past candidates and cultivating reliable talent pipelines
7. Employee Turnover Rate
Turnover refers to the rate of employees who leave their roles for any reason. Like absenteeism, it’s important to understand the different types of employee turnover so you can accurately measure and interpret employee turnover rates:
- Voluntary turnover, or when employees quit or resign
- Involuntary turnover, or when employees are terminated or laid off
- Turnover due to retirements, promotions, and lateral transfers
Breaking down turnover rates might alert you to an unusually high number of resignations or show that internal mobility is high. Employee turnover tells you if employees see your company as a long-term career or a stepping stone. It can also help you identify career paths, a bonus for both employees and candidates.
8. Quality of Hire
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- Quality of Recruiting Survey for New Hires
- Quality of Onboarding Survey for New Hires
- Quality of Hire Survey for Managers
Sometimes, you hire the wrong employee, and they quit within a few days or weeks or underperform and are terminated. It happens to every recruiter — but if it’s happening consistently, the hiring costs add up, and productivity takes a hit.
Gauge quality-of-hire to identify the traits of a best-fit candidate and use what you learn to make high-quality hires every time. At ClearCompany, we measure quality-of-hire by sending managers a survey after their new hire has been on board for 90 days. The survey asks managers to rate the new employee’s performance and progress.
We compare that score to the new hire’s Interview Scorecard to determine if the new hire is performing as expected when they were hired. The closer the scores, the higher the quality of hire. ClearCompany new hires score within .25 points of their Interview Scorecard, which means we excel at hiring the best candidate for every position.
9. Quality of Onboarding
New hires are at a higher risk of quitting than your longtime employees, and onboarding is a crucial stage that determines whether they’ll stay or go. A structured onboarding process can increase retention by as much as 50% and set employees up to be productive and engaged. ClearCompany measures quality of onboarding by asking new hires about their experience with a survey after they complete onboarding.
We’ve learned that more than anything else, two components of our onboarding program set us apart for employees. During their first week, every new hire has a few one-on-one meetings with a handful of people from different departments. Everyone also participates in our mentorship program. We know these strategies help strengthen our company culture because our employees said so.
End-to-end talent management is only possible with a well-rounded understanding of the employee experience at your company. Monitoring talent management metrics gives HR professionals like you clarity where there was guesswork so you can gain that understanding. And when you know the reality of the employee experience, it’s easier to make it better for your entire organization.
The first step toward improving the talent management process is understanding why these metrics matter. The next step is to start gathering data and monitoring these essential metrics for yourself. To do that, you need talent management software.
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