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Not Now. English US , Espanol Kindle Visier special, Bd. Find the best books from To glean these deeper insights, HR leaders need to focus on related metrics that highlight the connections that drive business performance and productivity.
We live in a knowledge-based economy.
The skills of an organizations top talent represent a vital competitive advantage in the marketplace. According to research done by Cornerstone OnDemand, a global leader of cloud-based talent management software solutions, 21 million Americans are planning to change jobs in alone.
The competition for top talent, then remains a constant in both good and bad economic times. Every organization must ensure they are doing all they can to ensure they retain their top talent, so they do not go elsewhere.
Mark Murphy, CEO of executive education firm Leadership IQ and author of The Deadly Sins of Employee Retention, calculates that when the labor market rebounds companies that did not stay focused on retaining top talent will see their turnover rates go from 5 percent to 50 percent, and it will happen overnight.
To be effective, every HR leader must be aware of whether their top talent and the vitally important workers in their organization are resigning, or at risk of resigning, at a greater rate than less crucial employees. In general, there is a correlation between cost-per-hire and size of company: The larger the organization, the lower its cost-per-hire.
To uncover this critical insight, HR should begin by measuring who is leaving the organization, and related factors such as engagement, career development and compensation. Specific metrics would include: Resignation Rate: The number of employees who have resigned in a given period, expressed as a percentage of the entire workforce.
Resignation Rate of Top Performers: The number of employees with top performance ratings who resigned, expressed as a percentage of the entire workforce. Promotion Rate and Promotion Wait Time: The ratio of employees who were promoted, and the average time in years between promotions.
Engagement Index: The overall level of engagement of employees in the organization. Market Compensation Ratio: The ratio showing average direct compensation of employees compared to the average for corresponding market targets.
Additionally, to better understand knowledge and skill erosion, HR leaders should know how the overall tenure of the organization is trending. The average amount of time from interview to offer is Recruiting Effectiveness The flip side of retaining critical workers is ensuring that an organizations recruiting strategies are attracting new talent of the same caliber.
Historically, recruiting metrics have focused purely on time to fill, which by itself fails to give a true measure of the basic goal of recruitingto ensure their organization has the best people to achieve its business goals.
To adequately understand whether this goal is being met, HR leaders should look beyond how fast positions are filled to understand business-impact shortfalls in capacity, whether new hires stay on with the organization, and whether their performance exceeds or lags that of other employees.
Ultimately, the result of recruiting initiatives should consistently increase the organizations performance through improved talent. To understand the true recruiting effectiveness, organizations should look at time to fill, but also look to understand quality of hire and business capacity measures.
Specific metrics would include: Vacancy Rate: The average number of vacant positions as a percentage of all positions in the company.