Your workforce is likely your most valuable, yet most expensive assets. In fact, you can expect anywhere from 40 to 80 percent of your total company budget to go towards maintaining your workforce. Hiring costs alone are now averaging at more than $4,000 per hire. Companies must find effective ways to maximize their recruitment strategies while keeping hiring costs manageable and the quality of hire high. Utilizing the right HR analytics can make this happen.
Here’s a look at four primary HR analytics that can provide the insight you need to assess and improve your hiring strategies.
Workforce Capacity Analytics
In order to remain profitable, it is vital that you frequently assess the capacity of your workforce. This is not about determining how many open positions you have in the company. It’s about taking a comprehensive assessment of the efficiency of your organizational structure. Are your employees maximizing their work time? Do you need to hire more employees to meet production? Can you reduce the number of employees in certain departments?
Capacity analytics is at the core of recruitment and without it your company cannot grow.
It’s important to regularly track your workforce capacity analytics and use this data to create a robust hiring strategy to meet the company’s growing needs.
Skills and Attribute Analytics
Does your workforce have the skills, qualifications and other attributes to remain competitive and even grow your business? If you don’t know the answer to this questions, it’s time to take a capability analysis. Start by determining not just what specific skills, experience, qualifications your company needs now and in the future, but also look at specific attributes, such as communication, problem-solving, and motivation that are needed in the workplace.
This evaluation will help you determine if there is a skills gap in your workforce. You can use this insight to target your recruitment efforts to attract and identify prospective candidates that can help fill in this skills gap.
Talent Acquisition Analytics
The only way to enhance your current hiring strategies is to first evaluate the effectiveness of your current talent acquisition process. How successful is your company at acquiring “ideal” candidates? Track metrics, such as quality of hire, time-to-fill, hiring manager satisfaction and first-year quality. This analytics will help you monitor the effectiveness of your talent acquisition strategies and determine where improvements can be made to enhance your overall hiring practices.
Employee Turnover Analytics
With unemployment reaching record lows, 87 percent of employers rank retention as a top priority. This makes it more important than ever to take a closer look at your employee turnover analytics. Conducting exit surveys and using valuable HR metrics, such as employee satisfaction rates and employee engagement levels can provide better insight into employee turnover.
It also is important to track both voluntary and involuntary turnover. Voluntary turnover could be indicative of a poor culture fit, lack of training or growth opportunities or other issues in the workforce. Involuntary turnover, however, is most likely attributed to a poor quality-of-hire. It’s important to take a closer look at why these employees were terminated and how to prevent such terminations in the future.
Utilizing HR analytics to craft, evaluate and modify your hiring strategies can improve the quality-of-hire, reduce turnover and enhance your ability to manage talent. FurstPerson’s dynamic Employee Lifecycle Analytics Engine can provide you with the data visualization and HR analytics you need to revamp your hiring strategies. Contact us today to schedule a discussion with one of our talent experts.