Data-Driven HR Strategy
Business decisions are driven by metrics. It could be consumer data, market research, or something else, but this is true in every facet of the business, even for human resources. Data doesn’t have to be complicated, but it must be relevant and it must be used. Every size organization should track key performance indicators (KPIs) to help make educated and informed decisions.
Here are three HR strategies and three sample KPIs you might track:
Talent Retention: How frequently and WHY are your employees leaving your organization? Was it salary or benefits related? Were you not recruiting the right skill sets? Did business needs change, and they no longer “fit”? One way to track this is to calculate employee turnover. The higher the turnover rate, the quicker employees are leaving, and the lower the turnover rate, the more you can view it as a mathematical pat on the back.
Employee Satisfaction: How are things going in their role? Do employees feel they have proper training, clear direction from management, and opportunities for professional development? Do they feel like leadership is sharing the necessary information with them? One way to track data for employee satisfaction is to ask them. Employee surveys can provide exponential insight into how the organization is doing to keep their employees happy.
Talent Acquisition: How long is it taking you to find talent? And we mean the right talent…tracking time-to-hire is a great KPI. When this metric lags – talent is not a priority for your business, but your people are what make it run!
These are just some ideas to consider, but as an organization, you must decide what is most important and relevant to you. Once you know this, the corresponding data will help you make informed decisions to enhance your business.
Revised 9/7/23
