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Key Performance Indicators in HR Analytics

The seeking, retention and engagement of human resources is one of the key functions of a company. The quality of workforce ensures growth and strength. HR managers and top management are turning to HR analytics to better understand how to use human resources to have a competitive advantage.

HR analytics helps capture the most meaningful data from current and historical sources to help you arrive at decisions that are impactful. Skill gaps, high performers, retention factors and general trends can be understood with the help of HR analytics. HR analytics helps throw up patterns and indicators that may have otherwise been missed.

In this article, we discuss some of the key performance indicators in the HR function.

Return on Investment

The cost benefit analysis for an employee is done by calculating the return on investment, in money terms.

Engagement Index

An index that is based on employee engagement with the job/ boss helps understand if the employee is happy with her profile. This further helps predict if the employee is likely to continue with the firm.

Attrition Rate and Causes

HR analytics tools can help capture attrition rates. The analytics software can also be used to analyze the survey feedbacks from exit interviews and project the main reasons for attrition. The company can then take corrective measures where possible.

Performance Assessment

Assessment criteria and employee performance across those criteria can be mapped using HR analytics. The feedback from various departments, help arrive at the assessment criteria across the company.

Skills Gap Analysis

Companies often have skill gaps, with all skills required not being properly met. A detailed analysis helps in recruitment drive. HR analytics can help alert manager about skill gaps and provide them with necessary information to take action.

Identification of Top Performers

HR analytics solution can be set to identify top or star performers in different teams. This is critical as these employees are growth drivers and motivators. HR managers can identify points of performance through online feedback forms and performance indicators.  They can then identify and reward such high performers.

The cost of recruiting, training, retaining and losing human resources are increasing for companies. They want to retain their talent pool in ways that are meaningful to them. HR analytics is the tool that will help understand and utilize their resources in the most optimum way.

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