Everyone knows that in order to attract customers, a company needs to have a beloved brand. As it turns out, a company needs to have a beloved brand in order to attract employees, too.
To determine whether your brand as an employer is strong or weak, you should lean on metrics used by successful HR departments to quantify their performance, according to Inc.com contributor and human capital specialist Michael Schneider.
"Although human resource departments don't generate revenue, HR does manage your organization's best competitive advantage -- its people," Schneider says. "It also can track key metrics that provide vital insights to help you make better human capital decisions and process improvements to realize their full potential."
One of the metrics you should track, according to Schneider, is "time to start" (i.e., the average time it takes to fill a position).
"Time to start is calculated by taking the total days positions are open and dividing them by the number of positions filled," Schneider explains. "This metric can provide insights on the effectiveness of your employment brand, marketing efforts, and application process. 'High' numbers can also provide perspective on your interviewing process. You may have too lengthy of an application process, too many interviews, or a weak candidate experience."
"Time to productivity" (i.e., the average numbers of days to satisfactory productivity) also is important to monitor.
"Time to productivity is calculated by taking the number of days between the new employee's start date and the point at which he or she reaches satisfactory productivity and dividing it by the number of positions filled," Schneider says. "This metric is a vital indicator of how well your onboarding program is performing. Also, outcomes can be an indication of the quality of your recruitment process and the caliber of the applicants you're attracting."
Finally, look at your "turnover rate" (i.e., the rate at which employees are leaving your organization).
"Turnover rate is calculated by taking the number of departures during a specified period (a year, quarter, or month) and dividing it by the average number of employees during the same period, and then multiplying by 100," Schneider says. "When focused on a target group (e.g., high performers, Millennials, low performers, or critical positions), this metric provides insights into the effectiveness of your performance management, development, or culture initiatives."
Although there are many other metrics you could track, these three are a good start; when you move the needle in the right direction, both your people and your bottom line will benefit.
Questions, Comments, Suggestions?
Contact Successful Meetings Editor in Chief Vincent Alonzo with your "How To" ideas.