Speaker 1: What are the top HR KPIs that you should be tracking? Hey there, my name is Josh. I'm the founder of HR University. Now, before we hop in, make sure to subscribe to our channel, and that way you don't miss any of our information and lessons on how to become a great HR professional. Let's begin. So, HR Key Performance Indicators, or KPIs, are the metrics that are used to gauge the performance of an organization's workforce. HR uses these metrics so they can assess their strategy. And with that, let's go ahead and look at the best of these KPIs. So, starting our list is Employee Retention. This is one of the most crucial HR KPIs, and the high value means that employees are happy with their job and will stay, while a low retention rate indicates that employees are not satisfied and may just consider leaving. And tracking this KPI allows organizations to identify problem areas and take corrective action before employees leave. And you can measure this key performance indicator by tracking various HR metrics with the help of talent management programs. And second is Employee Satisfaction. This is another key metric that HR needs to track. This is an indication of how much employees enjoy their job and how motivated they are to perform well. And this is usually determined by conducting Employee Satisfaction Surveys. You can use software such as Qualtrics or SurveyMonkey and many others to create these surveys and also analyze results. And the questions should focus on the company's work culture, their happiness with their role, and whether they feel valued and respected. And the third KPI is Time to Hire. This is simply the time it takes for a company to fill an open position. You want to track this metric by recording the number of days it takes to fill an open position. And this KPI is an indication of the efficiency of their recruitment process. Now a long process might prompt you to review whether the job description is clear or the skill set you're looking for is reasonable. And fourth, Recruitment Costs. This KPI tells you how much money the company spends on recruiting new employees. And tracking expenses will help you optimize them. A simple way to track this metric is by dividing the total money spent on recruitment by the total number of employees hired. And you want to take into account the money spent on advertisement, agency fees, interviews, and even money spent on onboarding the new staff. And number five here, the Absenteeism Rate. This is simply the number of days employees are absent from work. And there are valid reasons for absence. But tracking this metric helps you identify whether the absences are taking its toll on the deliverables of your organization. And you can use an attendance management software like Complete Advantage and many others to track this KPI. And number six here, Employee Turnover Rate. This indicates how many employees are leaving your company voluntarily or involuntarily. An additional feature should also provide the reasons for their departure. And a high turnover rate may signify that there is a problem with the work environment. And to track this KPI, record the number of employees who left the company in a given period. You can track the turnover rate by dividing the number of employees left by the average number of employees who remained. And seven here is Employee Productivity. And this measures how much work an employee can produce in a given period. Productivity affects the company's bottom line. And this KPI can be tracked by looking at the number of hours worked and how much work has been produced by an employee. And you can also supplement this by tracking computer activity using software such as Asana or something called Terramind. And again, many other tools that do this as well. And identifying productivity allows you to see who's performing well and those who might need guidance. And eight, we have Training Effectiveness. You want to track the effectiveness of your training programs to see if they are yielding the desired results. And training is an essential component of any organization. You want to make sure that it is worth the investment. And you can track this KPI by assessing the number of employees who completed the training and how much they learned from it, and then tying it back to their performance. And you can use surveys to get some of this feedback. And nine, we have Benefits Administration. Benefits and perks are normal, but you need to see whether they are meeting the needs of the workforce. And if not, well, this has the potential to affect all other KPIs, especially retention. So you can track this KPI by employing self-service portals, which allow employees to check their benefits anytime. And you can also use software like Zenefits and many others to manage your employee's benefits package and better understand the utilization rate. And 10, we have Overtime Hours. This is simply the time employees spend beyond their contracted working hours. It can also indicate whether staff are working on weekends. This affects their health and well-being. And you can track this KPI by looking at the number of hours employees have worked beyond their contracted hours. And you want to use time tracking software to help you monitor the number of time employees spend on their computers. And at 11, we have Employee Engagement. This is one of the most important HR KPIs to track. A high level of engagement can lead to better performance, lower turnover rates, and reduced absenteeism. And you want to track this KPI by surveying your employees on a regular basis. And you can also use software like PollAnywhere and again, many others to conduct anonymous polls and surveys. And at 12, we have Employee Net Promoter Score, NPS. This is a metric that measures the likelihood of employees to recommend their company to others. Additionally, it indicates how employees feel about their company. And a high NPS score is an indicator of a strong company culture. And you can track this KPI by surveying your employees and asking various questions about the company. And the measure comes from subtracting the percentage of employees who will recommend your company from the percentage of those who won't. And this metric can help improve your company culture, making it more attractive to potential employees. And at 13, we have 90 Day Failure Rate. This measures how many employees are leaving the company in their first three months. It's indicative that there is something wrong with the recruiting process or that the company culture is not for new employees. And you want to look at why they're leaving and it'll help you figure out what you need to improve. And you want to track this KPI by getting the number of people who have quit within the first three months and dividing it with total recruitment numbers. And at 14, we have Training Cost Per Employee. And this metric tells you how much you are spending on employee training. This also includes expenses in onboarding new employees, upgrading their skills, making them more productive and increasing their performance. And you want to track this metric by dividing the total amount of money spent on employee training by the total number of employees. And this KPI can help you decide whether to invest more money in employee training and even assess the effectiveness of your employee training program. And if the cost per employee is too high, but the performance of your employees are not improving, well, then you need to make some changes here. And at 15, we have Diversity Metrics. So Diversity Metrics helps you assess your organization's diversity progression with using various initiatives in doing that. And this is an analysis on workforce demographics and is useful to identify the diversity gaps to make corrective actions. Measuring the diversity rate is complex, but essential. You can track this KPI by looking at the number of, let's say, women in management positions, percentage of employees from different ethnic backgrounds and other related metrics, like metrics related to the talent acquisition process and ensuring that you're recruiting from a diverse talent pool. And you can use software like Workable, among others, that can help track diversity metrics in your company. And also pretty much any applicant tracking system can also do this as well. And last, we have Workplace Accidents. This metric is measured by the number of workplace accidents over a given time. It's indicative of how safe or unsafe the workplace is and can help identify room for improvement. You can track this metric regularly to identify areas where improvements are required. And there you have it. We just went over the best HR KPIs to help you improve your organization. Now, if I missed anything, make sure to go ahead and drop some other HR KPIs that you think are very important in the comment section below. And if you feel like you have a better understanding of what HR KPIs you should be tracking, make sure to go ahead and like this video and subscribe to our channel here at HR University, so that way you can keep up to date with all of our lessons on how to become a great HR professional. And again, my name is Josh. I'm the founder of HR University, and I'll go ahead and see you in some of our other lessons. Cheers.