Title: Key Topics Covered in HR Analytics Online Training
1Key Topics Covered in HR Analytics Online Training
2Introduction
Analytical skills are becoming a crucial job
requirement for HR as organizations strive to
become more data-driven. Unfortunately, there is
a shortage of analytical talent to meet this
need. Less than 20 of companies identify as
having a strong HR analytics function in their
business, and over 75 of HR professionals
reported difficulty recruiting for essential data
analysis positions.To remain competitive,
organizations need to rapidly upskill their HR
talent. In this blog, we will cover some of the
key topics that help learners sharpen their HR
analytics skills and knowledge.
3The Importance of HR Analytics
HR analytics came to be in the hopes that
businesses could improve internal processes that
relate to functions such as payroll, benefits,
hiring, employee onboarding, employee performance
and overall employee morale. It is the best way
to use data in order to forge an understanding of
how well a business is performing. Without
proper analytics, there is a high percentage
chance that the business could unknowingly be
losing money because of processes that just
arent resonating or working well with its
employees. Measuring data on employee processes
has provided better insight and overall
management to people teams everywhere. Without
proper HR analytics, executives wouldnt be able
to make proper business decisions that relate to
hiring, firing or promoting employees. If people
dont feel like their job is valued or that they
are performing at a high level and that the
company sees that, then it can become difficult
to retain high-performing employees. Without
proper data oversight, it also becomes more
difficult to shed the company of low-performers
who arent pulling their weight. The right data
provides legal protection against improper
employee-related decisions as they are made from
more than just opinions and feelings.
4Key HR Analytics Metrics With Examples
- There are a number of HR analytics that a
business can measure, but the right ones for you
will depend on what youre wanting to learn and
accomplish. The key HR analytics are ones that
are typically measured by most organized
businesses looking to keep track of their people
data. Here is an overview of those key metrics
that make a good starting point for most
businesses to launch an HR analytics program. - Revenue per EmployeeRevenue per employee
measures how much money the business is bringing
in for every employee it has on staff and is
paying expenses, such as salary and benefits,
for. It is calculated by dividing a companys
revenue by the total number of employees in the
company. Businesses love to track this because it
provides a way to see how efficient businesses
are at generating revenue for each new
hire.Example If a business has 100 employees
and brings in 10 million in revenue, its revenue
per employee would be 100,000.
2. Time To FillThe time to fill metric
measures how long it takes to fill an open
position at the company. It is calculated by
counting the number of days from posting the job
to someone accepting an offer. This gives good
insight into how efficient the hiring team is at
finding good candidates and moving them through
the hiring process. Example If a company posts
a job on March 1 and completes its interviewing
process, makes an offer, and gets that offer
accepted on April 20, then the time to hire would
be 51 days.
5Voluntary and Involuntary Turnover Rates
These rates measure the percentage of employees
who end up leaving the company. The voluntary
rate calculates the percentage of employees who
decided to leave the company while the
involuntary rate calculates the percentage of
employees who end up getting fired. While the
voluntary rate measures how well the company is
at retaining employees, the involuntary rate
measures how well it is at hiring the right
people and managing them efficiently. Both are
calculated by dividing the number of employees
who fall into each category by the total number
of employees in the organization. Example If 10
employees were fired in the last year, out of the
100 total employees the company had, then the
involuntary turnover rate would be 10 of
employees.
6Offer Acceptance Rate
The offer acceptance rate is another hiring
metric that measures how well the hiring team is
at convincing the people they want to take the
job. If a company is making offers to people
who are declining those offers at a high rate,
then the hiring process likely needs to be
adjusted to move candidates through the hiring
pipeline who are more interested in joining the
company. It is calculated by dividing the number
of accepted formal job offers by the total number
of job offers made. Example If the hiring team
has received 10 formal job offer acceptances this
year, out of 20 given out, then the offer
acceptance rate would be 50.
7Retention Rate
In contrast to the turnover rate above, it can be
important to see how well the business does at
keeping employees working for the business. This
can be measured company-wide or on a per-manager
level. To calculate the retention rate, you can
divide the total number of employees who decided
to stay employed over a given time period by the
total number of employees over that same time
period. Example If a business had 100 employees
in the last year and 85 decided to remain
employed, the retention rate would be 85.
8Absence Rate
The absence rate is the total number of days an
employee is absent from work, not including
approved time off such as vacation, over a
specific period of time. This is also referred to
as absenteeism and is important to measure in
positions where individuals call out of work at a
high rate, such as retail businesses. It is
calculated by dividing the number of days worked
by the total number of days that the employee
could have worked over a specific period of
time. Example When measuring the absence rate
for June, lets say there are 20 possible work
days. Our worker, John, worked 14 of those days
and was on vacation for another three days. This
means he worked 14 out of a possible 17 days.
That means he worked about 82 of the time and it
gives him an absence rate of about 18.
9Conclusion
HR analytics provide insight into the business in
a way that no other data does. It is an insight
into how your employees perform and react to the
business itself. Without proper people analytics
tools, you wouldnt be able to understand how the
hiring process is going or how you can improve
overall team performance and morale. To gain
more insights, join the HR Analytics Online
Training by MindCypress. It equips you with
latest knowledge and trends to keep you ahead.
10Slide Close and Resource
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