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Why HR Metrics Matter & The Connection to Employee Happiness & Productivity

Every organization strives for a happy and productive workforce. So why is this not always the result?  Just wanting it so doesn’t make it so.  It’s not just about listening to employee’s concerns – it’s also doing something about it.   This involves measuring our data (numbers) and transforming it into useful information (meaning).  The key is to pull out the valuable numbers that are hiding in our organizations that are patiently waiting to be found.

Where To Start

HR metrics are indicators that enable us to track and measure what’s important to us as an organization.  The key here is data that is important.  Be careful not to start measuring things just to measure things. Just because something is measurable doesn’t make it valuable. The first step towards value-added information is to figure out what you’re trying to achieve.  This will help you identify what to measure and help you to stay on track.  

Let’s continue to focus on our goal in this case of achieving employee happiness and productivity.
This broad (but important) goal is an opportunity for Managers and HR to brainstorm.  Alignment of what matters to both employers and employees is key here.   Since HR is there to support the people of the organization, the employee experience should be a consideration of the HR measuring process. Once we recognize the goals, we can then learn how to turn the data into intuitive reports for decision-makers. 

The Actual Measuring Part

There is no shortage of things to measure in HR, and there is no such thing as an exhausted list (at least when brainstorming).  This list should be uniquely tailored to your own company’s size, vision, and mission when it comes to your reporting strategy. It all depends on your organization’s specific circumstances.  Therefore, your organization should have a goal for each metric that clearly relates to your organization’s overall success.  Below are some examples to help you along.

Employee Happiness

Employee happiness (also measured as employee satisfaction) can be measured in many ways.  Keep it simple to start, and then continue to build it.  Where to start? Go to the data you already have with Employee Value reporting (Performance, Employment duration, Exit/Stay Interviews, Absenteeism and Turnover, Talent Turnover Rate, Retention Rate per Leader).  After all, what we can measure that is related to employee experience and results is the place to start and data that we already have at our disposal.

Survey It           

Recall that a survey is an instrument used to collect information from people about their preferences, opinions, behaviours, attitudes, or perceptions.  Surveys typically use numeric or descriptive rating scales.  Start by checking in with employees by giving them the opportunity to share their experiences.  This will help you gage how employees are doing and what (if any) concerns they may have. It’s not all negative either:  Include positive experience questions and learn what they’ve enjoyed so you can bring this back again.   Making it anonymous could prove useful in receiving more honest feedback. 

Absenteeism and Turnover

Everyone knows excessive amounts of time off from employees is almost always cause for concern.  Additionally, an organization’s turnover rate can be correlated with how engaged and committed employees are.  If you notice unexpected spikes in these numbers, it is well worth a further investigation.  

Exit Interview

This exercise has proven to be a very valuable (and appreciated) method of data collection. This is an excellent opportunity to meet with your employees and check in with them on a more personal level. It also shows you really care as everyone knows how valuable everyone’s time is.  

Performance Reviews

This data is straightforward and easier to collect, so take a closer look and put in a little extra time in analyzing performance appraisal data: Are employees meeting expectations on performance reviews? Are they struggling? We often are quick to judge that it’s the employee that needs to make some changes – but is there more to it than that? Check if any external factors might be at play.  Is training a factor for a whole department based on similar scores? Does leadership have a strong (and positive) presence? Does someone need support (i.e., EAP)?  Paying attention to which employees are not meeting expectations may help to identify issues to rectify.  Ultimately, when employees are fully engaged, they are more motivated and productive to do their best work.  

It is also valuable to include any Performance Improvement Plans (PIP) in the results because we want insight if these tools are working and have proven to be successful.

Conclusion

The work you do and the business relationships you have with your employees is important to the success of your organization.  However, without tracking and measuring what’s important to us, it can be challenging to confirm how to achieve our goals and make impactful recommendations.

Every organization, no matter how big or small, can benefit from reports. By taking the time to analyze your employees’ feedback and experiences from a strategic point of view, you can make better decisions and make the appropriate next steps for a better overall employee experience.

There’s no getting around it:  Producing value-added reports will help us to contribute to the best care of our existing (and future) employees in our organizations, which increases our opportunities as an organization to create a happier and more productive workforce.

To learn more about HR metrics and how to implement them successfully into your organization, email us at info@culturedhr.com. Whether it is just to get started or take your existing data processing to the next level, we are here to help!

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