What is one new HR metric or people analytics data points to discover risks and opportunities with in their workforce?
To help you use people analytics data points to discover risks and opportunities within your workforce, we asked CEOs and HR professionals this question for their best insights. From Survivor Rate to Predictive Analytics in Talent Acquisition, there are several HR metrics and new generation people analytics that you may use to discover risks and opportunities within your workforce.
Here are 13 new generation HR metrics and people analytics for workforce improvement:
- Survivor Rate
- Diversity, Equity, and Inclusion Metric
- Impact of Child Care Issues On Productivity
- Referral Volume Per Employee
- Recognition Connections
- Psychological Safety
- General Mental Ability
- Effective Headcount
- Pre-Employment or Candidate Experience
- Skills Gap Analysis and Skill Mapping
- Number of Declined Offers of Employment
- Employer Net Promoter Score Questions
- Predictive Analytics in Talent Acquisition
Turnover rate is one of the best KPIs available to discover risks and opportunities in the workforce. Unfortunately, turnover is measured after the fact and the damage is already done. A better alternative to looking at retention of the past is to consider future turnover avoidance; the ability to anticipate turnover and take action to prevent it.
A survival rate considers time and tenure as variables, projecting how long an employee might be retained based on anticipated events. Unlike turnover, it considers specific employee characteristics, looking for patterns in attrition rates to determine the probability of an employee leaving. Survival also includes peripheral factors which may influence the decision to leave, such as economic or family considerations. Sometimes finding an out-of-the-box solution demands looking outside of the box. Monitoring survival is a different way to view turnover so HR can better target their retention efforts and focus on specific initiatives.
Diversity, Equity, and Inclusion Metric
As the saying goes, you can't change what you don't measure, so it is essential to measure diversity and inclusion (D&I). Companies can use modern recognition systems to evaluate DEI through workplace recognition and employee engagement. These modern people analytics platforms can collect relevant data points for actionable insights. When you measure DEI metrics, you can encourage further progress on the issue and identify potential opportunities and risks early.
Impact of Child Care Issues On Productivity
While nearly all companies offer healthcare benefits, the reality is that working parents miss nearly twice as much work due to Child Care issues and 65% will arrive late or leave early. This presents a significant risk on business productivity and revenue.
One opportunity to solve the issue for HR teams is to offer Child Care benefits. The U.S. Chamber of Commerce Foundation found companies that provide Child Care assistance decrease absences by 30%, and job turnover by 60% while increasing productivity by more than 30% and recruiting efforts by 80%. With Child Care benefits yielding one of the highest benefit ROIs, tracking the data on how Child Care is affecting your workforce should be a priority.
Referral Volume Per Employee
The most important metric is referral volume per employee. Just like for customers the most telling metric is if the employees are willing to recommend your organization to people in their network. A high referral volume per employee signals people are happy with their work, the organization's culture, and benefits.
Employee recognition software has come a long way in the last decade, and any modern recognition program worth its salt can map out recognition across teams. That means connections between departments, within office locations, and even on the same team.
With this kind of data, People teams can identify informational silos early on and work with teams to improve collaboration or share learnings more efficiently. This kind of information can help managers identify isolated individuals before work performance is negatively impacted. Likewise, this data can identify key connectors in an organization who act as bridges across teams.
If you're not measuring the psychological safety of your employees, you're putting your organization at risk. We know that teams with high Psychological Safety are empowered to identify, surface, and even take measured risks. They're more likely to admit mistakes and bring new ideas to the table. So if you're not measuring and cultivating the psychological safety of your teams, you're leaving innovation, cohesion, and organizational resilience on the table.
General Mental Ability
The science is clear: GMA, often referred to as Learning Agility, is the best predictor of (a) performance in complex jobs, (b) speed of knowledge acquisition, and (c) navigating complexity. It predicts up to 42% of job performance, according to most meta-analyses (we think it's higher), and it's positively correlated with job complexity. According to Korn Ferry, companies with the greatest rates of "learning agile" executives produced 25% higher profit margins than peer companies. In this world, does your organization have the collective learning agility to adapt and win? With compassion and the right messaging, it's not hard to find out.
Instead of tracking openings and job requirements, we are analyzing the needs of our locations and determining the "effective headcount" needed to perform. We feel having a standard allows us to know a few things: (1) Where we stand, (2) How work is really being accomplished, and (3) Where we need to adjust. We had to have something to counter a scarcity approach because you never get all of the openings filled. We want to look forward with our data instead of backward.
Pre-Employment or Candidate Experience
One metric that I have begun to include in my HR dashboard (KPI's) is effectiveness of the Pre-Employment/Candidate Experience. HR has the ability to capture and evaluate the experience by collecting data from those we interact with at every phase of the pre-employment experience. This includes those we do not hire to gauge opportunities and risk to employee attraction and retention. Data can be easily obtained either verbally or by email survey. Regardless of the size of your organization or HR Tech stake soliciting feedback on your pre-employment processes can provide invaluable data on indicators impacting attracting, retaining, and engaging current and future employees.
Skills Gap Analysis and Skill Mapping
Skills gap analysis allows us to find out which skills and knowledge are lacking among the employees in the organization. Once we have this information, we can address the skills gap. Think of the future, as work and workplaces continue to evolve. What specific skills does your organization need employees to possess? We can answer this with a skills map, or an overview of all the skills those future employees will need, not just technical and job-specific KSA’s, but emotional, relational, and communicative ones as well.
These types of metrics can allow an organization to boost individual learning and development, help with strategic workforce planning, and make sure you have the right number of people with the right skills in the right place. You’ll know the strengths and weaknesses of your workforce; you’ll be able to plan ahead in terms of learning and development and recruitment and optimize your organization’s performance.
Number of Declined Offers of Employment
The number of job offers that are turned down by candidates are often overlooked but illuminate critical points of information. Historical trends, comparison to industry and labor market standards, and data across different job levels in a company will highlight potential difficulties and opportunities for improvement in recruitment and selection practices. For example, problematic information in this regard should signal a deeper review of the accuracy of job postings, length of time for recruitment and selection, compensation offerings, and interview processes themselves (questions asked, competency of interviewers).
Employer Net Promoter Score Questions
I think when the question is asked right, the eNPS can be valuable in discovering risks and opportunities. "How likely are you to recommend Company X as a place to work?" is the typical question. I think if it were fine-tuned to "Would you recommend a good match to Company X as a place to work?" it could be a more powerful data point. We had people answer the first question through our performance software and we had a lot of comments that said, "Some of my friends would not be a good match for the performance-based culture that we have, but I would recommend someone if they had this focus," and they, therefore, rated us lower. You do need the specifics in the question and the qualitative comments with the score to get the context needed to take action.
Predictive Analytics in Talent Acquisition
The pandemic and great resignation have made challenging talent acquisition even more difficult. As organizations compete for talent, deploying predictive analytics in the recruiting process helps organizations meet the recruiting challenges and helps build the talent pipeline for future hiring.
Predictive analytics helps identify applicants, assess applicants, measure fitness levels, and hire the right people to augment the workforce. Predictive analytics uses historical data collected from various platforms, both structured and unstructured data, then analyzes the data using statistical modeling and machine learning techniques to predict the likely successful candidates, fit applicants from the pool of candidates, and build a talent pipeline for future hiring as well.