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five essential

HR Leading
Indicators
(and How to
Improve Them)
EMPLOYEE SATISFACTION
SURVEY SCORES
These surveys provide HR departments with insight into
overall employee experience, engagement, satisfaction
and morale. They can be instrumental in identifying
areas that need improvement.

Employee satisfaction is typically measured through


confidential surveys conducted on a regular basis
(annually, bi-annually, or quarterly, or even pulse
surveys). These surveys usually contain a set of
questions that help understand how satisfied
employees are with various aspects of their job - their
role, work environment, management, compensation,
benefits, work-life balance, etc. The scores are typically
averaged to create an overall employee satisfaction
score.

High scores can result in increased employee


engagement, higher productivity, better retention, and
a positive company culture. Low scores can indicate
disengagement, dissatisfaction, and potential turnover.
This can lead to reduced productivity, a negative work
environment, and potentially high recruitment and
training costs.
EMPLOYEE SATISFACTION
SURVEY SCORES
A list of potential actions to improve negative scores, include:
From HR:
Regularly conduct employee satisfaction surveys and ensure the
feedback is acted upon.
Implement programs for employee recognition and rewards.
Develop initiatives to improve work-life balance.
Foster a positive and inclusive company culture.
From senior leaders:
Develop a clear vision for the company and communicate it effectively
to all staff.
Ensure that managers are well-trained in people management skills.
Support and encourage initiatives to improve the workplace
environment.
Be open to receiving feedback and act on it to show employees their
opinions are valued.
From direct managers:
Provide clear communication and direction to employees.
Address any issues or feedback provided through the surveys promptly
and effectively.
Foster a positive work environment that encourages engagement and
satisfaction.
Recognize employees' efforts and contributions to motivate and boost
morale.
EARLY
TURNOVER RATE
Keeping an eye on the early turnover rate can help HR
identify issues with the onboarding process or overall
job fit. This is typically calculated by dividing the
number of employees who leave the organization
within a specified short period (for example, one year)
from their date of joining by the total number of
employees who left during that same period. The result
is then multiplied by 100 to get a percentage.

A low early turnover rate suggests successful


onboarding and initial job fit, contributing to long-term
retention and reduced hiring costs. A high early
turnover rate is a strong indicator of issues with the
hiring process, onboarding, or job alignment, which can
lead to high hiring and training costs, as well as
decreased productivity.
EARLY
TURNOVER RATE
A list of potential actions to improve negative scores, include:
From HR:
Review and improve the onboarding process to ensure new hires have
the support they need.
Implement a mentorship program for new employees.
Regularly review job descriptions to ensure they accurately reflect the
role.
Gather exit interview data from early leavers and implement necessary
changes.
From senior leaders:
Get involved in the onboarding process, such as welcoming new hires
or being part of orientation sessions.
Encourage a culture of mentorship and peer support.
Show empathy and understanding if an employee decides to leave
early, ensuring the exit process is handled smoothly.
Review job roles to ensure that they align with business needs and
employee skills.
From direct managers:
Ensure new hires receive comprehensive onboarding and initial
training.
Regularly check-in with new hires to address any early issues or
concerns.
Foster a supportive and inclusive team environment.
Recognize the efforts of new hires to make them feel valued and reduce
the likelihood of early departure.
TRAINING
PARTICIPATION RATE
This is a key measure of how engaged and committed
employees are to their personal development and
learning new skills, both of which are crucial for
business growth. This is calculated by dividing the
number of employees who participate in non-
mandatory and mandatory (separate measurements)
training programs by the total number of employees in
the organization. This can be done for specific training
programs or for all training initiatives over a certain
period. In addition, this can be analyzed further by
weighing the quality of the programs measured in a
rated scale and the impact it had on the behaviors and
actions of training participants.

High participation rates can indicate an engaged


workforce with a strong commitment to skills
development and continuous learning. This can lead to
improved productivity and innovation. Low
participation rates can signify a lack of engagement or
potential issues with the training offerings. This can
result in skills gaps, decreased productivity, and low
innovation.
TRAINING
PARTICIPATION RATE
A list of potential actions to improve negative scores, include:
From HR:
Offer a variety of training opportunities to cater to different learning
styles and interests.
Schedule training sessions at convenient times and make them
accessible remotely.
Promote the benefits of training to employees.
Regularly review and update training materials to ensure they are
relevant and engaging.
From senior leaders:
Advocate for a culture of continuous learning and improvement.
Encourage managers to promote and support training among their
teams.
Allocate resources and time for employee training and development.
Validate and acknowledge the importance of skills and knowledge
gained from training sessions.
From direct managers:
Encourage team members to take part in available training and
development opportunities.
Allocate time within the work schedule for training.
Discuss the benefits and relevance of training programs in team
meetings.
Recognize and reward employees who actively participate in training
sessions.
EMPLOYEE NET PROMOTER
SCORE (ENPS)
The eNPS measures how likely employees are to
recommend their workplace to others, offering a
snapshot of employee satisfaction and loyalty. eNPS is
calculated using responses to this sample question, "On
a scale of 0-10, how likely are you to recommend this
company as a place to work?" Respondents are grouped
as follows: Promoters (9-10), Passives (7-8), and
Detractors (0-6). The eNPS is then calculated by
subtracting the percentage of Detractors from the
percentage of Promoters.

A high eNPS means employees are likely to recommend


the organization as a great place to work. This can
enhance the employer's brand and attract top talent. A
low eNPS can harm the employer's brand, making it
more difficult to attract and retain talent. It may also be
an indicator of underlying issues that need to be
addressed.
EMPLOYEE NET PROMOTER
SCORE (ENPS)
A list of potential actions to improve negative scores, include:
From HR:
Regularly conduct eNPS surveys and act on the feedback.
Foster a positive work environment and culture.
Regularly communicate with employees about their roles, expectations,
and the company's strategic direction.
Offer competitive benefits and opportunities for career advancement.
From senior leaders:
Demonstrate leadership by living the company's values, and
encouraging employees to do the same.
Show genuine interest in employee wellbeing and happiness.
Involve employees in decision-making processes where appropriate.
Regularly celebrate and acknowledge the achievements of individuals
and teams.
From direct managers:
Foster a positive team culture that employees would recommend to
others.
Regularly acknowledge and reward the efforts of your team members.
Address any concerns or feedback raised through the eNPS survey.
Strive to improve areas highlighted as needing improvement in the
eNPS survey.
PERCENTAGE OF OPEN
POSITIONS FILLED INTERNALLY
This metric can tell HR a lot about the effectiveness of
their talent development and retention strategies. High
rates can indicate successful internal growth and
development programs. This is measured by dividing
the number of open positions filled by internal
candidates by the total number of positions filled
during the same period. The result is then multiplied by
100 to get a percentage. This reflects the effectiveness
of internal mobility, talent development, and succession
planning programs.

A high percentage signifies successful internal mobility


and talent development programs. It can lead to
increased employee satisfaction, improved retention,
and reduced hiring costs. A low percentage can indicate
a lack of career development opportunities, potentially
leading to dissatisfaction and turnover, as well as
increased hiring costs.
PERCENTAGE OF OPEN
POSITIONS FILLED INTERNALLY
A list of potential actions to improve negative scores, include:
From HR:
Create clear career pathways within the organization.
Implement a robust succession planning process.
Foster a culture of continuous learning and development.
Regularly communicate internal job opportunities to employees.
From senior leaders:
Champion internal mobility and succession planning as part of the
company's culture.
Encourage managers to identify potential successors and high-
potential employees in their teams.
Foster a culture where learning, upskilling, and internal growth are
valued.
Show recognition for employees who advance their careers within the
organization.
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