The world of work is changing fast, and HR managers need to adapt to keep pace. According to a study byInstitut de Veille Sanitaire, 2.5 million employees in France, or 34%, are expected to suffer from burnout in 2024. Measuring your company's social climate is therefore one of the top priorities for preventing and anticipating extreme situations such as burn-out, disengagement and rising staff turnover.
In this ultra-competitive environment, a high-performance HR dashboard has become essential to ensure the growth and sustainability of your business.
But how do you find your way through the jungle of HR indicators and choose the ones that will help you effectively manage your human resources? Don't panic, we're here to guide you! In this article, we'll reveal the secrets of HR indicators, how to set them up and which ones to track to optimize your strategy.
What are HR KPIs?
HR KPIs, or key performance indicators for human resources, are quantitative and qualitative measurement tools for assessing and steering human resources management activities within a company. They provide a global and synthetic view of key human capital data, facilitating strategic and operational decision-making.
These indicators are designed to measure the effectiveness of defined human resources actions and objectives, such as recruitment, talent retention, training, employee performance, job satisfaction, and many other aspects.
It is important to note that HR KPIs need to be adapted to the specific objectives and challenges of each company. They must also be regularly reviewed and adjusted in line with the company's evolving strategy and priorities.
The 5 main families of HR indicators
In the field of human resources, there are several types of indicators for measuring and evaluating different aspects of employee and organizational management. Here is an overview of the main types of HR indicators and their usefulness:
Socio-demographic indicators :
These indicators provide an overview of the composition of your workforce in terms of gender, age, ethnic origin, level of education and seniority. They enable you to measure your company's diversity and implement diversity and inclusion policies.
Examples of socio-demographic indicators :
- Employees by gender
- Breakdown of employees by gender and SPC.
- Employees by level of education
- Turnover rate
HR indicators :
These indicators are used to anticipate future human resources needs, such as recruitment, training or internal mobility requirements. They help plan HR actions to support the company's strategy and objectives.
Examples of forecast HR indicators :
- Internal mobility rate
- Age pyramid
- Promotion success rate
- Percentage of positions with an identified successor
HR performance indicators :
These indicators enable us to assess the effectiveness of HR policies and actions in terms of recruitment, retention, training and employee development. They help identify areas for improvement and adjust HR strategies to maximize overall company performance.
Examples of HR performance indicators :
- Employee engagement rate
- Assessment and evolution of payroll
- Target bonus payout rates and amounts
- Annual appraisal rates and trends
HR indicators related to recruitment :
These indicators assess the efficiency and quality of the recruitment process, including speed, cost, and candidate and manager satisfaction. They help optimize the recruitment process to attract and hire the best talent.
Examples of HR indicators related to recruitment :
- Vacancy fill rate
- Average cost per hire
- Average recruitment time
HR indicators related to training :
The importance of HR indicators linked to training cannot be underestimated, as training and the skills development are key factors in a company's success. According to a study conducted by LinkedIn 94% of employees say they would stay with a company longer if it invested in their professional development.
These indicators measure the effectiveness of training and skills development programs in terms of participation, satisfaction, success and cost. They help tailor training programs to the needs of employees and the company to maximize performance and competitiveness.
Examples of HR indicators related to training :
- Percentage of employees trained
- Number of training hours per employee
- Training satisfaction rate
- Training costs
Important HR indicators to monitor in 2024
Visit 2024To ensure optimum management of human resources and anticipate the challenges and opportunities of the job market, a number of HR indicators will be particularly important to monitor. Here are the main indicators to keep an eye on:
Employee Net Promoter Score:
Employee engagement is a key factor in a company's success.eNPS enables organizations to understand the level of employee satisfaction and their willingness to recommend the company as a place to work to friends or colleagues. It provides valuable insight into the work climate, and helps identify areas for improvement to increase talent engagement and retention... Measuring this indicator enables actions to be taken to improve employee commitment and motivation.
Turnover rate :
The turnover rate measures the number of employees who leave the company over a given period. A high turnover rate may indicate problems with talent retention, employee satisfaction or commitment. It is important to monitor this indicator to identify the causes of departures and implement measures to improve employee retention.
Absenteeism rate :
Absenteeism can have a significant impact on a company's productivity and performance. A high absenteeism rate may indicate a problem with well-being or working conditions. Tracking this indicator can help identify the causes of absenteeism and implement actions to improve quality of life at work.
Diversity and inclusion indicators :
Diversity and inclusion are major challenges for companies in Europe. 2024. Measuring indicators linked to employee diversity (gender, age, ethnic origin, etc.) and inclusion initiatives helps to ensure an inclusive corporate culture and to leverage the benefits of diversity in terms of innovation, creativity and performance.
Training and skills development indicators :
With the rapid evolution of skills required in the job market, it is crucial to track indicators related to employee training and skills development. These indicators include the percentage of employees trained, the number of training hours per employee, the training satisfaction rate and the training success rate. They help ensure that employees have the skills they need to face future challenges, and contribute to the company's competitiveness.
By tracking these key HR indicators in 2024This will enable companies to anticipate future needs, optimize human resources management and support overall organizational performance.
Why set up and monitor HR indicators?
Implementing and monitoring HR indicators is crucial for a number of reasons. Here are some of the main benefits of implementing and monitoring these indicators:
Decision support :
HR indicators provide quantitative data that enable decision-makers to make informed decisions based on objective information, improving the effectiveness and efficiency of HR processes and policies.
Strategic alignment :
Monitoring HR indicators ensures that human resources efforts and resources are aligned with the company's strategic objectives, thus contributing to the achievement of these goals.
Identifying trends and problems :
HR indicators enable the rapid identification of trends, problems and opportunities within the organization. This enables HR managers to react quickly to challenges and seize opportunities to improve business performance.
Measuring the effectiveness of policies and actions :
By tracking HR indicators, managers can assess the effectiveness of their policies and actions, enabling them to adjust them as necessary and constantly improve performance.
Improved employee satisfaction and commitment:
HR metrics help identify areas where employees are satisfied and engaged, as well as areas requiring improvement. This enables HR managers to implement initiatives to improve employee satisfaction and engagement, which can have a positive impact on talent retention and overall company performance.
Benchmarking and comparison :
HR metrics enable companies to benchmark themselves against similar organizations and assess their performance against industry standards. This can help identify areas for improvement and set realistic, achievable performance targets.
Implementing and monitoring HR indicators offers many advantages to companies. They help improve decision-making, align HR efforts with strategic objectives, identify trends and issues, measure the effectiveness of policies and actions, improve employee satisfaction and engagement, and benchmark against other organizations.
How do you set up and monitor your HR indicators?
Setting up and monitoring HR indicators is essential for effective human resources management and to support the company's strategic objectives. Here are some key steps for setting up and monitoring your HR indicators:
Identify the relevant indicators:
Determine which indicators are most relevant to your company, based on your HR objectives and priorities. The indicators you choose must be aligned with the company's strategic objectives and enable you to measure key aspects of HR performance.
Collect data:
Set up a process to regularly collect the data needed to calculate your HR indicators. This data can be collected from a variety of sources, such as HR management systems, employee surveys and annual interviews.
Calculate the indicators :
Once you've collected the data, calculate the indicators using the appropriate formulas. Make sure you understand how each indicator is calculated and what data is required for the calculation.
Analyze the results:
Analyze the results of your indicators to identify trends, areas for improvement and opportunities for growth. Use this information to adjust your HR strategies and actions to improve your company's performance.
Communicate the results:
Share the results of your HR indicators with relevant stakeholders, including executives, managers and employees. Transparent communication of results promotes accountability, commitment and understanding of corporate objectives and expectations.
Follow and adjust :
Make sure you regularly monitor your HR indicators and adjust your strategies and actions according to the results. Implementing a continuous improvement process will enable you to remain agile and responsive to the challenges and opportunities of the job market.
Setting up and monitoring HR indicators is essential for evaluating and improving your company's human resources management performance. By following these steps, you can put in place an effective monitoring system that will help you make informed decisions and ensure your company's success.
Conclusion:
In conclusion, let's not forget that HR indicators are our allies in boosting our company's performance and propelling it towards a promising future. By choosing the right indicators and monitoring them regularly, we cultivate a fulfilling work environment, where employee commitment, satisfaction and productivity are the order of the day.
