{"id":3741,"date":"2021-10-28T14:07:42","date_gmt":"2021-10-28T14:07:42","guid":{"rendered":"https:\/\/techkow.com\/latest\/blog\/nd_blog\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/"},"modified":"2022-04-26T11:34:19","modified_gmt":"2022-04-26T11:34:19","slug":"utilizing-hr-metrics-five-metrics-to-boost-your-decision-making","status":"publish","type":"post","link":"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/","title":{"rendered":"Utilizing HR Metrics: Five Metrics to Boost Your Decision Making"},"content":{"rendered":"<p class=\"rtejustify\">Nowadays as HR has become more influential in driving innovation and changes in business, workforce analytics has also become vital for better evaluation of processes and improvements of strategies.<\/p>\n<p class=\"rtejustify\">With these five HR metrics, investors and businesses can make decisions more efficiently, which will lead to business growth and higher returns on investments.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#What_are_HR_metrics\" title=\"What are HR metrics?\">What are HR metrics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#Benefits_of_HR_Metrics_for_investors_and_businesses\" title=\"Benefits of HR Metrics for investors and businesses\">Benefits of HR Metrics for investors and businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#How_alternative_data_can_enrich_HR_data\" title=\"How alternative data can enrich HR data\">How alternative data can enrich HR data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#Five_HR_metrics_to_improve_decision_making\" title=\"Five HR metrics to improve decision making\">Five HR metrics to improve decision making<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#1_Cost_Per_Hire\" title=\"1. Cost Per Hire\">1. Cost Per Hire<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#2_Revenue_Per_Employee\" title=\"2. Revenue Per Employee\">2. Revenue Per Employee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#3_Profit_Per_Employee\" title=\"3. Profit Per Employee\">3. Profit Per Employee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#4_Retention_Rate\" title=\"4. Retention Rate\">4. Retention Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#5_Human_Capital_ROI_Ratio\" title=\"5. Human Capital ROI Ratio\">5. Human Capital ROI Ratio<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"What_are_HR_metrics\"><\/span>What are HR metrics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"rtejustify\">HR metrics, also known as human resources metrics, are key indicators that enable HR to track and measure the performance of human capital and human resource initiatives.<\/p>\n<p class=\"rtejustify\">By leveraging data from HR metrics, you can make decisions that drive better outcomes for the company and its employees. Examples of HR metrics include turnover, cost-per-hire, retention rate, and others.<\/p>\n<p class=\"rtejustify\">According to research, human resources metrics should be included in investment reviews for better financial outcomes, as there is a positive correlation between human capital and financial performance.<\/p>\n<h2 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"Benefits_of_HR_Metrics_for_investors_and_businesses\"><\/span>Benefits of HR Metrics for investors and businesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"rtejustify\">There are also many benefits that HR metrics have to offer for your company. For example, you can improve the company culture and environment by offering better-suited training and useful feedback. This will help your employees to improve performance and get access to more promotion opportunities.<\/p>\n<p class=\"rtejustify\">Among other high-level benefits of HR metrics for businesses there are:<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp; &nbsp; Decreased retention rate, as by analyzing HR metrics you identify turnover triggers, such as lack of training, fewer promotion opportunities, and more.<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp; &nbsp;&nbsp;Improved ROI within HR programs through learning which recruitment strategies are more efficient and impact engagement, and performance more.<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decreased labor costs through implementing efficient processes that lead to improved labor resources allocation.<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Optimized employee experience, improved work culture and satisfaction rate.<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Improved business performance through HR-related actions, including retention of top-performing talent.<\/p>\n<p class=\"rtejustify\">Measuring HR metrics helps organizations figure out their people strategy and see whether their current initiatives work well.<\/p>\n<h2 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"How_alternative_data_can_enrich_HR_data\"><\/span>How alternative data can enrich HR data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"rtejustify\">Alternative data is commonly used for analyzing and evaluating HR metrics. Data from outside the organization is essential, as it offers a global perspective that traditional data doesn\u2019t show.<\/p>\n<p class=\"rtejustify\">Here are alternative data sources you can use to enrich HR data:<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial data. Organization-wide financial data is essential for any HR analysis, as it helps to calculate important HR metrics, for example, the revenue per employee.<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Passive data from employees. This includes employees&#8217; posts on <a href=\"https:\/\/techkow.com\/latest\/blog\/nd_blog\/best-social-sites\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color:#0000FF\">social media<\/span><\/a> and answers to feedback surveys.<\/p>\n<p class=\"rtejustify\">\u25cf&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historical data. Data on global economic, political, or environmental events offer unique insights into different patterns in employee behavior.<\/p>\n<p class=\"rtejustify\">Behind great decision-making stands thoroughly analyzed and processed data. HR metrics can provide strategic insights into the effectiveness of talent management strategy. You need to identify the right analytics that connects human capital management to strategy and key organization goals to make HR metrics meaningful to your business.<\/p>\n<h2 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"Five_HR_metrics_to_improve_decision_making\"><\/span>Five HR metrics to improve decision making<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"rtejustify\">There are many HR metrics that you can utilize to get a comprehensive overview of employees\u2019 performance, identify workforce trends, and make better data-driven decisions.<\/p>\n<p class=\"rtejustify\">Here are five key HR metrics that will help you to determine more opportunities for better financial decisions:<\/p>\n<h3 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"1_Cost_Per_Hire\"><\/span>1. Cost Per Hire<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"rtejustify\">Cost per hire refers to the average costs that occurred during the hiring process, including costs associated with searching for candidates, interviews, and hiring those who fit job requirements.<\/p>\n<p class=\"rtejustify\">Companies need these metrics to create a company&#8217;s recruitment budget. Cost per hire allows you to track the quality of talent while also providing useful insight on ways to optimize the hiring costs. Also, cost per hire helps to make wiser investment decisions, as you know how much each hire costs your organization.<\/p>\n<h3 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"2_Revenue_Per_Employee\"><\/span>2. Revenue Per Employee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"rtejustify\">Revenue per employee is another important metric, as it shows how much money each employee brings to the company. If revenue per employee is high, it\u2019s a sign of a productive company. This HR metric measures the efficiency of utilizing employees.<\/p>\n<p class=\"rtejustify\">Revenue per employee is an industry-specific metric, meaning in some labor-intensive industries, revenue per employee may be lower, while in others that require less labor input &#8211; higher.<\/p>\n<h3 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"3_Profit_Per_Employee\"><\/span>3. Profit Per Employee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"rtejustify\">This metric goes as an addition to revenue per employee and allows you to get the whole picture. Even if a business generates significant revenue, it doesn\u2019t mean that resources are divided proportionately.<\/p>\n<h3 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"4_Retention_Rate\"><\/span>4. Retention Rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"rtejustify\">The retention rate shows the effectiveness of retaining talent at your company. With the retention rate metric, you can get useful insights into how effective your HR initiatives are. This allows you to identify the opportunities for further improvement.<\/p>\n<h3 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"5_Human_Capital_ROI_Ratio\"><\/span>5. Human Capital ROI Ratio<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"rtejustify\">Human Capital Return on Investment (HCROI) is an essential metric that gets more and more used among investors and top companies. It\u2019s because it is a great sign of how the company will perform in the future.<\/p>\n<p class=\"rtejustify\">Employee productivity ratio helps to identify which important arrangements and changes need to be implemented to improve performance.<\/p>\n<p class=\"rtejustify\">Nowadays, utilizing HR metrics is a must for any HR department that wants to build an outstanding data-driven <a href=\"https:\/\/techkow.com\/latest\/blog\/nd_blog\/top-reasons-for-investing-in-online-reputation-management\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color:#0000FF\">management strategy<\/span><\/a> for the organization.<\/p>\n<h2 class=\"rtejustify\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"rtejustify\">HR metrics provide viable and measurable data that effectively connect leadership and better talent decisions. As a result, analyzing and using data from HR metrics leads to valuable business outcomes.<\/p>","protected":false},"excerpt":{"rendered":"<p>Nowadays as HR has become more influential in driving innovation and changes in business, workforce analytics has also become vital for better evaluation of processes and improvements of strategies. With these five HR metrics, investors and businesses can make decisions more efficiently, which will lead to business growth and higher returns on investments. What are [&hellip;]<\/p>","protected":false},"author":1,"featured_media":3740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[],"tags":[4433,4432],"postcategory":[],"class_list":["post-3741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-five-metrics-to-boost-your-decision-making","tag-utilizing-hr-metrics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v23.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Utilizing HR Metrics: Five Metrics to Boost Your Decision Making<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/techkow.co\/en_ca\/utilizing-hr-metrics-five-metrics-to-boost-your-decision-making\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Utilizing HR Metrics: Five Metrics to Boost Your Decision Making\" \/>\n<meta property=\"og:description\" content=\"Nowadays as HR has become more influential in driving innovation and changes in business, workforce analytics has also become vital for better evaluation of processes and improvements of strategies. 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