HRM 630 AU Five HR Metrics Concerning Various Terms in A Organization Discussion

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Part I

Five HR Metrics:

Return on Investment(ROI) this is a calculation used to measure the financial return on an investment made. It can be applied in a business measurement of the performance of the firm by assessing the net profit compared with the overall net worth of the company.

Training/Development Hours is used to measure course completion rates for different courses. When you have the ability to measure and track the effectiveness of the training in addition to make continuous improvements to the training. This metric is extremely important because you have to know where your opportunities lie as a company and the best way to do that is testing knowledge of employees, and based on how they do within trainings will help the organization understand where training needs improvement or if that type of training is even needed.

Absence Rate this is beneficial to organizations whose staffing and operations may be significantly impacted by an employees absence. These absences refer to sick leave, carers leave, compassionate leave, parental leave, jury duty, no-shows, and other reasons.

Cost Per Hire this refers to the average amount of money spent on hiring a new employee. It is useful when the organization is looking to create or track their recruiting budget. This is another important metric as it helps the organization know the costs and resources that go into hiring a new employee. It also helps for budgeting reasons as far as planning for new hires.

Revenue per employee this is a measurement of the revenue of the company divided by the companies total number of employees, its something that should be looked at year after year to see if it went up or down in order to help for future planning of your budget. This is also an important metric as it really is something important that can affect the organizations budget overall. This gives the organization insight as to how much each employee is bringing in and their overall worth to the company.

HR departments, large or small, should leverage HR metrics by making sure they have a full understanding of the role metrics play in talent analytics. It is also important for the organization to identify the workforce-driven components of business-driven metrics. Lastly, the organization should not compromise on data quality, this applies to choosing things you track as an organization because you want to make sure the business is being ran better.

Part II

Human resource metrics are tools used to track and measure performance on different aspects of the organization (Teeboom, 2019). These tools are a key component in ensuring the success of the organization. With the use of these formulas a company is able to foresee the conditions of the organization in the future. Most organizations use prediction methods which allows them to make an improvement plans to avoid hardships down the road.

The are many metric formulas available for the companies use however, we are going to discuss some that companies use often. For the organization to run smoothly and meet their demands their employees need to report to work. We know employees are sometimes faced with business they must take care of; however, a good attendance record is essential for employee and company productivity. Human resources personnel can calculate the absence rate for their location. To calculate the absence rate formula is # days absent in month ÷ (average # of employees during a month x # of workdays).This will provide the individual with the percentage of absences within a given month. should have some type of attendance policy in place to deter employees from constantly calling out.

To retain our employees, we have to offer them opportunities that they value such as professional development and trainings. Providing these opportunities for the employees will in turn increase employee production but they cost money. When deciding which trainings to provide and for how long. To ensure the employees receive what they need the while following the budget, they can use the program cost per an employee. To evaluate the cost of training per a person you must use this formula total cost of employee benefit/program ÷ total # of employees If need be you can check to see if a specific employee has been participating in the opportunities. The formula to calculate the number of hours per an employee is the sum of total training hours ÷ total # of employees.

Another aspect that is important to a company is the recruitment, hiring, and retention of employees. Many companies especially production and retail struggle with retaining their employees. There are many metrics that are helpful during the hiring process such as cost per hire, turnover, turnover costs, employee engagement, and the time it takes to fill a position. Before the company can hire anyone, they must have the money. The formula for the price for hire is as follows recruitment costs ÷ (compensation cost + benefits cost). When determining the number of people to hire the turnover rate and costs. When employees quit shortly after being hired the company already spent the time and money to train them. When this happens, it is a major loss for the company. To calculate the turnover rate, you must use the following formula # of employees exiting the job during 12 month period ÷ average actual # of employees during the same period. To calculate the turnover costs you must use the following formula total costs of separation + vacancy + replacement + training.

Lastly every company must take under consideration if the employees are satisfied with their jobs and the company they work for. If an employee is not engaged in their work they are more than likely to leave the company shortly after they begin. When employees are constantly quitting it effects the production, cost per a hire, and the turnover costs. We have to remember to develop training plans to ensure our employees continue working for the organization. To find our how many employees enjoy their jobs it is ideal to conduct a survey.

Part III

Usually one of the main goals on an employers list has something to do with hiring or retaining their current employees. When an employee begins a new job, they are excited, ready to work, and they want to learn everything. To ensure the employees remain engaged we must provide them with meaningful work and motivation. When working in a retail environment it is not uncommon to see new faces around the company. In North Carolina, the average turnover rate for retail businesses from 2015 to 2019 was 54% (Table 16, 2020). The turnover rate for a retail business in 2019 was 58% (Table 16, 2020). Having turnover rates within the 50% range means that within a years’ time their human resources department has replaced half of the people within their organization.

To reduce these rates the company must develop a retention plan and know what employees’ value. Even in the United States the workforce consists of individuals from many other cultural backgrounds. One opportunity to reduces these rates is developing and maintaining organizational Growth. Growing the organization is not always about the customer its advancement but also works to successfully meet the company’s goals. Managers must get to know the new employees, so they are able to pick out the hidden talents and strengths of that individual. As a company it is also important that we continue to advance by expanding consumer markets, opening new stores, and creating new products.

Sometimes companies forget that employees have lives outside of work. During major holidays such as Easter, Thanksgiving, and Christmas retail business receive a major increase in their customer traffic. During this time managers may ask employees to work extra hours to compensate for this increase. When asked many say no to the extra time during the holidays so they can spend time with their families. This generation of workers are searching for companies that allow them flexible hours, sick time, work from home options, career development options, and health insurance. When an organization is offering these benefits to the employee it makes them fee like the company cares about them and their family.

Above everything we must show appreciation to everyone in the organization for all the hard work they do. An employee can begin working and enjoy their job but as time goes along, they feel all their hard work goes unnoticed. As this feeling continues there will usually be a decline in employee performance and eventually, they will decide to leave the company. It is also possible that the former employee will give negative feedback about the job when asked or over the internet.

Part IV

Once your organization has selected the right talent to hire, it is important to have a plan set in place to retain those employees with the company. Having a solid retention plan will help improve employee satisfaction and decrease turnover rates. Below are my five key points for my employee retention plan.

Onboarding and orientation: All new hires brought into the company should be set up for success from the very start of employment. Developing an onboarding process where new hires are not only educated about their job, but also the company culture itself. Providing them with insight on how to contribute and thrive in the company.

Employee Compensation: This is a very important point in the retention of employees as the job market today is so competitive. Offering an attractive compensation package, including salaries, bonuses, paid time off, health benefits, retirement plans, and other perks. All employees should have a full understanding of all the benefits provided to them.

Recognition and Rewards Systems: Making employees feel appreciated for what they do is extremely important. Whether it is a sincere email, a gift card, or an extra day off, showing your employees they are valued makes a world of difference.

Training and Development: When management takes the time to invest in its employees it allows the employees to seek opportunities for them to grow with the company. Continued training and development will allow employees to extend their skill set, learn other job roles, and move up within the company.

Team Celebrations: Taking the time to celebrate major milestones for individuals and the team is important when it comes to employee morale and employees feeling valued. Whether its a work anniversary, birthday, or other celebration, taking the time to share with your team through a shared meal or group outing makes them feel valued and that their hard work goes unnoticed.