3 Fundamental HR KPIs to Measure for Business Success
Posted on 31st March 2017 in KPIs
Written by Freya Hughes
There are so many KPIs that can be applied to the HR industry. With so many staff, clients and candidates all needing to be monitored, there’s a lot of planning to be done. It can be a struggle to keep on top of where your business may be going. To save you some much needed time, we’ve summed up the 3 main KPIs to monitor in your HR firm.
Human Resources is an industry with many fluctuating channels. Like any industry, it’s crucial to monitor and maintain a good average with each in and outgoing client, customer, employee and candidate. We spoke to our client, HR software providers Hive.HR, a while back who made the point that no matter now you operate, each and every one of your team is accountable for driving your business’ performance. FUTRLI can act as the lens through which the whole team can view and connect with the strategic narrative of the business. You can read the full case study here. But for now, let’s have a look at the three essential KPIs to be monitoring to keep your HR business on the right path.
Employee churn rate
If you’re employing candidates who aren’t sticking to the jobs assigned, something’s amiss. This means you may have a problem with employee retention. If you’re linking ten candidates to jobs per week, but they’re leaving their new employment before or at the end of their probation period, what’s not right? Is it that candidates aren’t being vetted properly? Is the company they’re assigned to not doing something crucial to retain employees? Measuring the churn rate is a reliable way of identifying whether retention is being missed.
It examines how many candidates have left during a period relative to the total number of candidates you had at the start of your chosen reporting cycle. The lower the number, the more successful you’ve been. Find out how to measure it in FUTRLI.
Leads per month
There are two parts to this KPI – it’s worth measuring them separately.
This need to be monitored, so you’re not letting down the businesses that have employed you to find their staff. Set a goal and see how you’re measuring up to that. Let’s say you need 20 fresh faces per week. How will you find them? Part of your business plan should include marketing to get your business’ name out there. Set up a trustworthy brand and candidates should flock in. Your ranking on reliable search engines needs to be high as people simply won’t sign up to a dodgy looking site.
If you’re gaining candidates by the boat load, do you have roles for them to consider? If you think each candidate is going to want at least 3 or 4 options, have you catered for that? Again gaining more businesses could be helped by marketing, but maintaining a great relationship with existing clients is key too. The existing businesses using your services are to be nurtured as they could be the ones keeping your head above water in tough times. Get a team to get out there and hunt new leads – the more you contact, the more your business’ name is getting out there too. Learn more about your Customer Acquisition Cost.
Developing your staff and candidates is so important. It’s known that an informed employee is more likely to be satisfied in their role. Nobody wants to go into work every day not having a clue what’s expected of them. Measuring staff development is also a core KPI because you’ll need to know how well each person on your books is performing. It’s not going to reflect well if you’ve placed a candidate who is unwilling to learn. It’s therefore essential that you place this at the heart of your strategy for growing the business.
Time to Train is a Staffing metric examining how long it takes for your new recruit to learn the ropes. Of course, you want them to learn as quickly as possible as it’ll provide you a faster return in your investment. Every trainee is (usually) a cost that is being paid for that is yet to deliver on the time and monetary investment made. Make informed staffing decisions with FUTRLI.