There are numerous HR publications that list a plethora of metrics that a HR department must track. But, are they ‘HR Metrics that Matter’? What differentiates ‘HR Metrics that Matter’ with other nice to have HR metrics? The answer is very simple! The metrics that cover strategic goals like productivity, innovation and revenue growth. Keeping tabs on strategic metrics gives you a clearer picture of how your business is doing in terms of talent management. I am going to walk you through the best recruitment and performance related metrics.

1. July, 2017
Talent Metrics that you cannot afford to miss
RheinBrücke IT Consulting

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Introduction
It helps in forecasting the opportunities and threats to your
organisation. Hence, you can prioritize in advance
These metrics prove that your HR department is a valuable strategic
partner in enhancing your business
The act of measuring helps in improving the performance of
your entire organization
It shows you the strengths and weaknesses of your workforce
Why keep track of important talent related metrics?

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What are the best HR metrics that you must track for improving your business?
Percentage of talent goals that were met
Revenue per employee
Quality of hire improvement
Cost per hire
• All business functions must meet their strategic goals. The role of the HR team is to present a report on
the percentage of goals exceeded, met and unmet for all the business units in an organization.
• To measure the performance and innovation output of your employees, divide the revenue of
your business by the total number of employees in your organization.
• You can assess the effectiveness of your competition’s workforce by checking your RPE against
theirs. If it is lesser to your competition, you must improve your bottom-line.
• When you make new hires and if they are better than their precedents it is evident
that productivity of the team will improve.
• Work with your CFO to ascertain the increase in revenue because of hiring better
performing and driven employees.
• Cost per hire (CPH) includes all the costs like advertising fees, vendor costs, travel
expenses for scouting, incentives to employees for referrals, internal recruiter
costs etc. divided by the total hires made by your company.

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What are the best HR metrics that you must track for improving your business?
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Time to hire
• Time to hire tracks the speed in which a
potential candidate move through your
hiring process once they have been sourced.
• This efficiency metric gives you the clearest
picture of how the recruiting team is
performing and can easily be tracked in a
HCM solution.
Source of hire
• Tracking the source of hires with the help
of Application Tracking Systems(ATS) gives
your recruiters insights about strongest
and weakest source.
• Keeping this data helps you to modify
your team’s priorities and cost to ensure
the best possible ROI for your business.
Turnover rate
• It is the percentage of employees who leave
the organization. High turnover can be a costly
as employees must be replaced frequently.
• Filling open positions can have negative effects
on your revenue and productivity. Companies
must strive to avoid high turnover rates.
Diversity hires
• Diversity hires include diverse thinkers and
international hires especially, in client facing positions
can be a huge plus.
• If your employees reflect the diversity of your
customers, your services will sell better.

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What are the best HR metrics that you must track for improving your business?
Effectiveness of a HR software
• When an investment is made on a HR software, the business
leaders would like to know about the ROI.
• For instance, a learning and development module in your HCM
solution can help you by providing metrics like active users, time
spent on the platform, screen flow etc.
• You can determine what works for your people and device
programs accordingly.
HR programs that increased productivity
• You can determine the impact of the HR programs like
training, onboarding etc. by surveying managers and
employees.
• Ask the managers the HR program that contributed to
their reaching their productivity goals.
Learning performance index
• LPI is a survey that measures organizational performance on
dimensions like Vision, Infrastructure, Culture, Learning
Dynamics, and Training Investment.
• These dimensions, make up the critical elements characteristic of
a learning organization.
• Rate your employees based on these dimensions & produce a
report based on the hours spent on learning.

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What are the best HR metrics that you must track for improving your business?
Revenue lost due to vacant positions
• There is a drop in productivity and revenue if employee quits or if
there is an unfilled position. Calculate the loss per day by dividing
the average yearly revenue generated by the employee by the
number of working days.
• Report the decrease in vacancy days and the reduction in the
amount of lost revenue due to slow hiring and job dissatisfaction.
Employee engagement rating
• Engaged employees outperform employees who
have bad managers. Engaged employees are more
productive and generate more revenue.
• It is a very important metric for assessing all your
team managers.
Performance and potential
• Most forward thinking HR organizations use the 9-box grid.
It maps the performance and potential in three levels which
gives you a clearer picture of your workforce.
• For instance, who overperforms, who underperforms, who
has immense potential.

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Conclusion
Find strategic gaps
in the workforce
Identify top talent you
need to keep
Integrate data from
multiple sources
Identify operational areas that fall
below industry-average metrics
Predict worker and team
performance and attrition
rates
Model the effects of
organizational changes
HR managers and other
decision makers need the
analytics that can help
Use a Human Capital Management solution to keep a track of the best talent related metrics

8. CONTACT
Kumar Mallapalli
Partner
No. 45, 5th Cross
Nagar, Ekkatuthangal,
Chennai, Tamil Nadu, India 600
032 Tel: www.rheincs.com.
Phone +91 44 6671 7555
+91 9677060180
RheinBrücke IT Consulting
GmbH
Im Zollhafen 18 (Kranhaus I)
D-50678,
Köln,
www.rheincs.com.
Phone +49(0)221 650 60 608,
Mobile +49(0)173 326 8109
marketing@rheincs.com