Without people, companies are nothing, and the internal public is one of the most important in organizations, since it is this that makes companies grow and evolve. People Analytics is the process of collecting, organizing and analyzing employee behavior data in order to contribute to decisions made in the company, anticipating trends and adjusting strategies. This term is increasingly important to companies and is expected to grow in importance over the next few years, which means that more and more data on employees exists and there is a need to do something useful with that data. KPIs help us work on information and gain insights for decision making. In today’s article, we present the best human resource KPIs your business can have!
Employee turnover rate
It indicates the number of employees who leave and enter the company, during a certain period. For the company, this index should be as low as possible because it means there is retention of talent. A high index may indicate a low attractiveness of the company in relation to the competition.
Absenteeism measures employee absence rates and indicates the actual reasons for absences or delays. Absenteeism may be linked to poor working conditions, such as ergonomics in the company or bad environment in the team.
In order to calculate this indicator, it’s necessary to include all the expenses with the payment of the contractual terminations and to add all legal and procedural costs. It is also necessary to add the expenses with the replacement of the professional who left, besides the investment in training.
Ratio between extra hours and worked hours
This indicator is linked to the concept of productivity and demonstrates the relationship between the amount of overtime (paid or accumulated in the time bank) and total hours worked. It’s an important indicator for analysing the overload, operational capacity and labor allocation.
Employee satisfaction index
This index is calculated by collecting opinions from employees, who can respond to surveys where they show their satisfaction on a numerical scale. The higher this level, the better the human resources area will be and the greater the motivation of employees to work.
Average cost by employee
This indicator shows us how much it costs, on average, each employee of the company. It is obtained after adding all personnel expenses (salary, food allowance, holiday and Christmas allowances, contributions to the State, among other expenses) and divided by the total number of employees of the company.