Making Success Measurable
Even the most innovative initiatives are of little value if their effectiveness cannot be proven. That’s why the motto “Measure it or forget it” also applies to People Analytics. However, the question arises: which parameters should be used to evaluate activities in this field? In this blog post, you’ll learn which Key Performance Indicators (KPIs) allow for meaningful insights.
KPIs for People Analytics vary depending on the objectives and needs of your organization. However, typically, the following can be seen as essential metrics for determining the effectiveness of people analytics:
Employee Engagement
Talent Management
Diversity and Inclusion
Talent Acquisition
As you can see, it is possible for KPIs to vary by company and industry. They should also be monitored and analyzed regularly to ensure continuous improvement of the HR strategy.
Whitepaper on People Analytics
Data-driven decisions in human resources
Our whitepaper, “Data-Driven Decisions in HR,” offers a hands-on introduction to People Analytics, outlining the key steps to strategically strengthen your business and guide it toward a data-driven future.
Tracking KPIs is key to gauging the effectiveness of optimization measures. Ingentis org.manager is a powerful software solution that can help to set up these optimizations with visualizations and analyses for a sound foundation. We would now like to use two examples to show you how certain KPIs are collected:
People Analytics can be used to measure employee engagement with your company, helping to identify and monitor the relevant factors.
Turnover rate: The rate of turnover shows what proportion of employees have left the company over a certain period of time, which may point to potential retention concerns if the percentage is high.
Satisfaction: Surveys, feedback sessions, and interviews can be used to measure employee satisfaction, allowing for inquiries into the workplace and company culture to determine the contentment of employees in their jobs.
Engagement: This measures the level of commitment and enthusiasm employees feel for their work and the company. This can be determined through surveys or feedback interviews.
Number of days absent: The number of days employees have been absent, whether due to illness, vacation, or other reasons, can indicate poor employee retention.
Productivity: Productivity can also serve as an indicator of retention. For example, high productivity may indicate that employees are engaged, motivated, and feel a strong connection to their employer.
Promotions: The number of internal promotions can indicate how well a company is developing and preparing its employees for leadership positions. A higher percentage of internal promotions can also indicate that the company is investing in the career development of its workforce.
Talent retentions risk: This measures the level of likelihood that top performers and high potentials will leave the company. It can be determined based on factors such as performance, potential, loyalty, and career goals. A higher risk may indicate that the company needs to take action to improve employee retention.
Proportion of managers recruited internally: This indicates how well the company is developing talent within the organization and preparing them for leadership positions. A higher percentage indicates that the company invests in its employees and that internal career opportunities are available.
Time to fill vacancies: This parameter measures how quickly the company can fill open positions. A longer time to fill may indicate that the company is having difficulty finding and recruiting qualified employees.
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