Turn to any HR magazine, blog, or conference, and you are certain to hear the term “HR Metrics” before too long. There are several terms that go along with metrics, so let’s take a moment to define and differentiate each of them:
- Measures (or measurements) are actual numbers and small bits of data used to create the metrics. For example, the number of full time equivalents in your organization and the number of terminations in a year are both measurements. As they say, Garbage In, Garbage Out – so be careful that you are gathering accurate measurements.
- Metrics are the ratios or percentages or numbers that are created using the measures. To continue the example above, if you divide the number of terminations by the number of employees in a given time period, you create the metric of a Turnover Rate for that time period.
- Analytics take metrics and apply them to trends and future-focused events. Analytics… well… analyze the data into useful information that a company can use to make future decisions. Another way to think about it is that analytics turn numbers into a story, often to help pinpoint a need for change in the organization. When used to identify future needs, they are commonly referred to as predictive
- Big Data is a conglomeration of metrics and analytics using a huge (big) pool of data. HR professionals can look to big data numbers to use as benchmarks where relevant.
HR professionals can benefit from employing metrics and analytics into their presentations. Presentations needn’t be formal executive PowerPoint slides; they can be as simple as having a 1-on-1 conversation with your boss and trying to sell him or her on an idea that you have.
I believe that HR Metrics is a hot topic because it provides some sort of measurement to HR’s value to an organization. HR is sometimes viewed as an expense in an organization. Metrics help dispel that viewpoint for effective HR functions. For example, if you can show that this year’s turnover rate is lower than last year, and can tie that to a dollar amount, you can cite the ROI of your new wellness initiative or the cost-benefit analysis of your increase in benefits.
For example, your company is tracking turnover rate, training time, and average time-to-fill for recruiting your talent. In watching the month-to-month metrics on these three items, you notice that the turnover rate has steadily increased over the past year, actual training time has decreased, and the time-to-fill has decreased. What does this tell you?
Using this limited information, we might look at the following options:
- Look at creating a more formal Onboarding program to provide more robust training at the beginning of employment.
- Investigate the recruiting process – are we hiring warm bodies, or are we doing our due diligence to hire the right person? As Jim Collins would say in his book “Good to Great,” are we making sure we are getting the right people on the bus, in the right seats?
- Interview workers and managers in the organization – especially if the turnover is high in one department – to discern if there is a communication error or something more egregious happening. You know the adage: people don’t leave jobs; they leave managers. Taking the time to gather this qualitative data will help you determine if you need to implement manager training, get executive coaching for one particular manager, or look for a way to manage the employee out of the organization.
As you can see, metrics provide the information, which we gather together to tell a story (analytics) to present a business case about WHY we need to change or offer a program. Metrics are a great tool to use to overcome the “because we’ve always done it this way” mentality, because numbers don’t lie.
Jennifer Currence, MBA, SPHR, SHRM-SCP, is president of OnCore Management Solutions. She is an HR consultant, corporate trainer, and business coach based in Tampa, Florida.
Many small businesses face challenges when it comes to recruiting new talent. The job market has changed drastically and in order to keep up with it, you have to do things a little differently. There are now many creative ways of recruiting great hires that are proving to be more effective than previous methods. On behalf of HR Shield, here are some of the best new recruitment strategies.
Self-Selection In order to get to the employees that are really interested in the job, give them an opportunity to prove their interest in between sending in a resume and showing up for the interview. You could invite them to an open house for prospective employees and see who shows up. This will help reduce the applicant pool to the ones who actually take the first step.
Avoid Job Fairs Job fairs often turn out to be huge crowds of people that don’t quite fit the role you’re looking to fill. Instead of attending events like these, look for other types of events where talent might be gathering. Even if these events aren’t necessarily recruitment events, you can still network and potentially find people that are qualified for roles in your company. Platforms like Meetup are a great place to start.
Look Back at Past Candidates There’s a reason why former candidates made it through the first round or two of interviews. If you passed on a good candidate in the past but it was a close race, they could be a good person to get in touch with now to see if the timing might be better suited for you both.
If you don’t have an in-house HR department, an HR Shield Advisor can offer assistance in recruiting talented new hires. Contact us today!
Have you recently heard the term “company loan” and wondered what it was? A company loan is a loan provided by an employer to an employee. These loans can range from third party loans to loans paid out from the company’s finances. When the loans come from a third party, they are generally at extremely high interest rates and are for short term borrowing. Loans guaranteed by a company are usually lower interest, longer term and paid directly back to the employer through automatic payroll deductions.
These programs are being touted as the financial equivalent of a health and wellness program, as they often include financial education elements as well. The goal of these loans is to help employees address unexpected financial burdens or to help consolidate long-term, high interest debt into a single loan.
According to Renaud Laplanche, the CEO of Lending Club, a peer-to-peer lending start-up, this offering is a win-win for both the employees and companies. “The program we’re putting in place gives the ability for large companies with lots of employees to make loans to their employees and use their treasury reserves, on which they are earning like one or two percent, and put them to work,” he said in a recent interview. “At the same time, they would be offering a lower interest rate to their employees than what they’re paying on their credit cards or other loans they have. It’s really an HR benefit and recruiting tool.”
Is he right? Yes and no. In a perfect world, if employees paid loans back on time and no one defaulted then everyone would win. However, as HR professionals we know that there are regularly unexpected challenges with employees. When developing a company loan program, you need to spend time with both HR Consultants such as HR Shield, and attorneys, to ensure that you are developing an iron clad system.
Contact us today to start discussing the opportunity to develop a company loan program with your personalized HR Advisor!
“Assessment Tool” is a vague term used to describe a product that evaluates potential candidates for your company. After all, avoiding bad hires is important! People aren’t always who they appeared to be during that great interview.
Scan the web and you’ll find countless assessment tools from free-downloads to expensive multi-faceted platforms. As a hiring manager, how do you know which one is going to yield the best results? Which one is the best tool for your particular organization?
The following 5 tips are brought to you by the Omnia Group, HR Shield’s preferred provider of behavioral assessment and employment consulting services.
- Make sure you can speak with someone. If it’s an online-only solution, you don’t really know who or what is behind the tool. Are there real people to evaluate the results and offer advice if necessary? Or is it a standardized and automated process?
- Do they provide customized questioning? No two companies are alike. Just like people, each company has its own personality, culture, way of doing things, preferences, and more! Why should your tool for finding “the perfect fit” be exactly the same as the company down the street?
- Is the vendor’s assessment tool EEOC & ADA compliant?
- How long does the assessment take? Studies show that drawing out assessment tests for hours on end actually discourage candidates, frustrate them, and can bring out the qualities you DON’T want to see! By the time they’ve reached “Question #78” they aren’t even being honest anymore; they just want to finish your never-ending test!
- How quickly can results from the assessment test be provided? If the turnaround time is 3-5 days and you need to hire someone tomorrow, it may not be the right product for you!
Do you want to learn more about the Omnia Group? Visit our two previous blogs, Introducing the Omnia Group and Avoiding Bad Hires with HR Shield and the Omnia Group.
Hey there! Yea, you, the business owner or HR manager looking to avoid bad hires and find the very best fit for your organization….. We’ve got great news!
HR Shield has partnered with the Omnia Group of Tampa to provide our clients with value-added hiring tools.
Who is the Omnia Group?
The Omnia Group is a behavioral assessment and employment consulting firm right here in Tampa, but they serve clients worldwide. They help companies of all sizes and industries avoid bad hires, manage more effectively, and retain top talent with remarkable results.
Through a variety of online behavioral assessment tools, their company is able to reveal an individual’s personality tendencies in the workplace, BEFORE they become a part of your team. Their “Omnia Profile” product is the only hiring tool that uses a customized position description based on client input to compare applicants to the specific employer workplace, the candidate’s future supervisor, and other employees already succeeding in the job,
How Can You Best Utilize the Omnia Group?
HR Shield Members often take advantage of our Company’s hiring and firing resources including job interview questions, new-hire forms, details on exit interviews, COBRA compliance, severance packages, non-disclosures and much more, but Omnia take your hiring capabilities to the next level! Omnia’s assessment of a candidate’s potential for success is based upon your definition of appropriate behavior for the available position within your Company; nothing is standardized.
Through this new alliance, clients of HR Shield will receive a FREE PROFILE with their initial order placed at the Omnia Group.
Never used such a tool? You’ll be pleased to learn that the Omnia Profile is independently validated as 93 percent accurate, is free of age, race, gender and cultural bias, and complies with current EEOC/ADA guidelines.
We invite you to join us in the upcoming weeks as we dive further into detail about the Omnia Group. We’ll be letting you know a little bit more about how hiring as well as internal promotion mistakes can cost your organization thousands of dollars – not to mention valuable man-hours and lost business potential. We’ll also be providing you with a quick “Vendor 101” crash course, where you will learn more about how to identify the best vendors of assessment tools. There are a lot of tools out there, but not every one is right for your organization.