HR ANALYTICS

Let’s get started..

What is your dream company?

Why?

How do you know about it?

How do you think they arrived at this?

Where shall we focus?
Benefits
Metrics
TA Metrics
Engagement
Metrics
Engagement
Scorecard
Training &
Development
Metrics
Confusion Matrix
C&B Metrics
Bottlenecks
All the Best!

Subba Dasarapalli – 78934 36754

Learn more, Earn more!
Workforce can be classified based on -
• By Employee Demographic – • By Value–
✓ Age ✓ High potential
✓ Life stage ✓ High performance
✓ Gender ✓ Critical to org success
✓ Ethnicity ✓ High demand in labour market
✓ Education level
• By Personality
• By Employee relationship with the company ✓ Learning or thinking style
✓ Tenure in the job/ organization ✓ Networking
✓ Professional stage ✓ Strengths
✓ Grade/ level of Job ✓ Personality traits
✓ Geographical location
• By health
• By work Roles ✓ Mental health
✓ Nature of work ✓ Physical health
✓ Profession or role
• By values and behavior
✓ Engagement with work
✓ Mobility
Employer branding metrics
• Candidate Quality
• Cost per hire
• Number of Applications
• Offer Acceptance Rate
• Employee Experience
• Employee Referral Rate
• Employee Retention Rate
• Brand Awareness
• Source of Hire
• Bonus Tip: External Reviews
Candidate Quality

• Number of applicants / Number of interviews =

Candidate Quality
• If your applicants-to-interview ratio is above 12%,
you’re probably attracting a lot of qualified applicants
to your company. If it is less than that, you should
think about ways to improve candidate quality.
Cost per hire

(Internal + External recruiting costs) / Total number of hires = Cost per hire

When a company earns a reputation for being a top employer, more candidates come
to them directly—and those candidates are often a better fit for the organization since
they know exactly what it stands for. With more quality candidates coming to them,
recruiters can spend less time—and of course less money—on sourcing ideal people for
open roles.
Number of open applications

• While this may not seem like a metric worth tracking,

it’s really helpful to track the number of candidates
that apply for open roles. By adding this option to
your career site, you can be sure that people who
sent in an open application know your employer
brand.
• Studying the number of applications will also help
you gain an understanding of how visible your
company is as an employer. If you focus on building a
strong employer brand and then begin to notice an
uptick in the number of open applications coming in,
you’re probably on the right track.
Offer Acceptance Rate

• Total offers made / Offers accepted = Offer

acceptance rate

• Measuring the offer acceptance rate is beneficial to

employers for so many reasons. Not only does it help
track how successful your hiring efforts are, but also
points out the number of candidates who are turning
down offers. You can calculate the offer acceptance
rate and complement it by researching the reasons for
rejection. Ask for feedback and learn as much as you
can about why you’re not the employer of choice for
candidates who reject your job offers.
Employee Experience

• While there’s no formula for calculating something like

the employee experience, there are still ways you can
measure and learn from it. Many companies analyze
insights gleaned from employee surveys and exit
interviews to get helpful feedback on the employee
experience.
• If you find out that your employee experience differs
from what you’re trying to provide as an employer, it
might be time to make changes in how you’re building
and communicating your employer brand.
Employee Referral rate

• Employee referrals help decrease cost per hire

and improve retention rates—so it goes without
saying that many companies measure employee
referral rates. By learning the number of
employee referrals, you can better understand
how effectively you’re communicating your brand
internally and externally.
Employee retention rate

• Some studies suggest that retention rate is the

most commonly measured employer branding
metric, which makes sense because it’s easy to
measure and brings a lot of insights through
conducting and learning from employee exit
interviews. Find out as much as possible about
your employees’ experiences before they jump
ship and use what you learn to improve your
employer branding and recruiting processes.
External Reviews

• Websites like Glassdoor, Comparably, and Indeed

provide overall company ratings, CEO approval
ratings, current and existing employee reviews, and
many other helpful details that you can leverage to
inform your company’s employer branding strategy.
Brand Awareness

• While brand awareness is a bit more abstract than the

more tangible employer branding metrics, it’s really
important to have an idea of how many people know
you as an employer. The more well-known and well-
liked your company is, the more likely it is you’ll attract
high-quality candidates when hiring, because you will
be their employer of choice.
• Rather than calculating a number with a formula, brand
awareness can be measured through social listening. By
monitoring your social media mentions and
interactions, you can develop a better understanding of
brand awareness and sentiment—meaning how people
feel about your company as an employer
Sources of Hire

• Where did your hires come from? How did they find out
about you? Measuring source of hire helps recruiters learn
where they’re most effective and what sourcing channels
are less successful. To measure source of hire, determine
where the bulk of your hires come from and evaluate
whether you’re allocating resources effectively.
• If you recognize that very few of your new hires are coming
from more cost-effective sources like employee referrals,
you may want to consider strategies to increase referrals.
For example, many companies offer referral bonuses to
current employees who refer people for open roles.
What do Companies Measure in Engagement
Employers typically assess their employees’ engagement levels with company-
wide attitude or opinion surveys. A sampling of the criteria featured in such
instruments reveals 10 common themes related to engagement:

• Pride in employer
• Satisfaction with employer
• Job satisfaction
• Opportunity to perform well at challenging work
• Recognition and positive feedback for one’s contributions
• Effort above and beyond the minimum
• Understanding the link between one’s job and the organization’s mission
• Prospects for future growth with one’s employer
• Intention to stay with one’s employer
Engagement is measured with Employee Surveys

What do surveys measure? What do we use the information

for?
The level of engagement in the
To understand employee sentiment
workforce

How engagement varies across

To identify best practices and ‘hot
departments, countries, job levels,
spots’
demographic groups etc.

To set priorities to guide decisions

What issues underpin engagement
and organisational change

To open a dialogue with employees

Views and opinions on management
to create engagement and focus on
practices and other issues
areas of most concern
 Employee Turnover Rates
• Computing Turnover Rates:
▪ The U.S. Department of Labor suggests the following formula for computing
turnover rates:

Thus, if there were 25 separations during a month and the total number of
employees at mid month was 500, the turnover rate would be:

1–34
 Employee Turnover Rates (cont’d)
• Computing Turnover Rates (cont’d):
▪ Another method of computing the turnover rate is one that reflects only the avoidable
separations (S). This rate is computed by subtracting unavoidable separations (US) from
all separations. The formula for this method is as follows:

where M represents the total number of employees at mid month. For example, if there
were 25 separations during a month, 5 of which were US, and the total number of
employees at mid month (M) was 500, the turnover rate would be:

1–35
 Employee Absenteeism Rates
• Computing Absenteeism Rates

1–36
Attrition affects HR, other organizational functions as well as business and
delivery.
Impact of Attrition
• It is difficult to find suitable replacements for lost employees,
particularly those with high experience and special skills.
• It takes time, effort and money to recruit new employees having
required skills and experience, to train them and to help them reach
the levels of performance and quality of work, which are comparable
to the lost employees.
• Loss of an employee adversely affects ongoing projects and services,
which leads to dissatisfaction among customers and other
stakeholders.
• It takes time and effort for new employees to achieve the same
levels of expertise and productivity.
• Loss of an employee costs money, which is spent in recruitment,
training and salaries for the new employees, which are often higher
than what the lost employees were getting.
• Employee churn rates can be as high as 12–15% annually. Moreover,
attrition happens throughout the year. Thus, high churn
organizations are continuously engaged in “fire-fighting” attrition.
Root causes of Attrition
Employee Engagement
Research has shown it to be linked to important outcomes:
- Discretionary effort
- Job performance
- Employee retention
- Innovation
- Adapting to change
- Revenue & profitability
- Customer experience
Employee Engagement data shows you a snap shot in time
about the current state of Workforce Engagement.
Benefits of HR Analytics
• Feedback is required for continuous learning
• Accountability ‘What gets measured gets done’
• Quantify the value of HR
• Guide workforce strategies
• Maximize HR’s return on investments
• Show what HR contributes to business results
• Make the business case for HR’s objectives
TA Metrics
Training &
Development
Metrics