According to a UNESCO report, a company’s human assets represent approximately 54% of its total capital. Valuable advances are being made in data processing and exploitation in order to better measure the performance of HR strategy.
WhatHR indicators are absolutely essential?
The important indicators measure, on the one hand, the attachment of employees to the company and, on the other hand, the effectiveness of the HR policy: relevance of recruitment (internal and external), training, inclusion, etc. …. We detail 5 of them in this article.
HR indicators that show your employees’ attachment to the company
Like hotels, restaurants, shows – and kids at school – French companies are now evaluated! Platforms, apps, charts, professional social networks, tools are multiplying to allow employees to rate, evaluate, rank their companies.
But when these tools are indicators set up by the HR department, they are even more valuable! Here are some of them that allow you to measure your company’s love rating…
The eNPS
This is the ” Employee Net Promoter Score ” or, in French, the “taux d’engagement des collaborateurs”. This barometer, which originally did not include the term “employee” and was therefore limited to the NPS, was created by a consulting firm to initially evaluate customer satisfaction with a simple question: “How likely are you to recommend [company name] to a friend or colleague? It only took one step to apply the question to employees and create this indicator that measures employees’ commitment to their company and their propensity to recommend it.
Retention rate
After having monitored their “Turn over” for a long time, companies are now going beyond that. Thanks to HR smart data, they now measure their employees’ attachment to the company and calculate their ability to retain them.
The “rate of ‘Cherish & Retain’ Employees” provides companies with statistics on the degree of retention of their workforce. The value of this indicator ranges from 0% to 100%. The percentage established indicates the proportion of employees who are still working for the company at the end of a reference period. A retention rate of 90%, for example, means that 9 out of 10 employees can be expected to remain with the company over time…
In addition, the analysis of the number of employees recruited in year N and still employed in year N+1 allows you to know the success rate – or failure rate – of your recruitment campaigns and to make any necessary corrections (sourcing of candidates, selection process, on-boarding, etc.).
The proportion of recruitment by co-option
The contribution of the employees to the recruitment is a proof of their attachment to the company. Co-optation is all the more useful since, according to ATS Jobvite, half of the co-opted employees are still in their jobs after 3 years, compared to 14% if they went through a job board. Thus, these recommendations are valuable both because they convey a good image of the company, and because they contribute to the “pipe” of CVs.
A high rate of “job referral” is therefore virtuous in every respect!
HR indicators that reflect the quality of your recruitment strategy
HR policy is now built with as much care as a marketing strategy. It is therefore normal that it is also subject to key performance indicators (KPIs). The HR function is therefore challenged on performance objectives related to the management of its human capital or to the performance of its recruitments. The following indicators are perfect to analyze these KPIs…
Average tenure
Analysis of this criterion makes it possible to measure the average length of time a position is occupied. Here again, it attests to the employee’s well-being in the company and, more specifically, in the position he or she has been assigned. This indicator is very important because it also makes it possible to determine so-called “penurious” profiles, i.e. those that correspond to positions that have difficulty being filled with the talents that correspond to them. In this case, this indicator also allows the implementation of ad hoc recruitment strategies, in relation to these specific positions and/or a refinement of the referential of skills…
Trial period failure rate
This indicator, which literally translates as “three-month failure rate”, measures the proportion of new recruits who are no longer with the company after the first three months. Of course, casting errors are always possible, but a high failure rate raises questions… It is then urgent to question:
– The quality of the recruitment strategy
– Or… The attractiveness of the company
In both cases, this indicator is precious and deserves to be included in the reports so that the necessary corrective measures can be put in place if the failure rate over 3 months proves to be high…
In conclusion, let’s note that all these indicators are essential in the management of your human assets. If they are good, they are valuable and constitute a strong communication axis for your employer brand. If they are not so good, they are just as important to take into account because they are a source of progress for your HR policy.
