Essential HR Dashboard Metrics with Examples

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The human resource department is becoming more data-driven with the availability of new HR software and business analytical tools. 

The main purpose of using HR metrics is to help understand how human capital can be channelized to drive the organization toward its goals. It includes operational efficiency, employee retention, and best hiring practices. 

However, creating a huge number of HR metrics will only act as a distraction rather than contributing towards achieving goals.

HR must conceptualize and use HR metrics that are practical and based on the objectives they want to achieve. 

This is where the HR dashboard can help. HR dashboard illustrates different data sets, usually not more than six or seven, in a summarized format to give a quick overview of the overall organizational health. 

What Is an HR Dashboard? 

An HR dashboard is a visual representation of all the key metrics that you need to monitor and analyze for the decision-making process. It gives an accurate picture of the progress of organizational effectiveness in relation to certain predefined objectives. 

These metrics are equally crucial for HR managers as well as decision-makers in the company. It helps them identify if the company strategy is well aligned with organizational and individual goals. 

An HR dashboard should offer a clean and intuitive display of all key performance indicators (KPIs). 

Top HR Metrics for Every HR Dashboard

The goal here is to monitor metrics that can help you align with the company’s future course of action. 

Let’s look at some of the most important HR metrics that every dashboard should have. 

1. Turnover Rate

Turnover refers to the process of replacing an employee with a new one. High turnover can be harmful to the company as it directly impacts the productivity level and disrupts the work environment. Filling open positions can consume time and effort for both employers and hiring managers. 

Moreover, the cost of turnover is exceptionally high. Losing an employee can cost 1.5-2 times the employee’s salary. 

The turnover rate is the percentage of staff members in a company that leaves within a certain period of time. 

If the turnover rate is high, you need to understand the aspects of your business that are likely contributing to it. It could be anything from lack of growth opportunity to one-way communications or your compensation structure/benefits package. 

2. Employee Net Promoter Score (eNPS)

Employee net promoter score is simply a measure of employee engagement. In other words, how likely your employees are to recommend your company as a place to work.

This method has been adopted from the NPS measure, associated with customer satisfaction surveys. Employees are asked, “how likely they are to ‘promote’ you on a scale from 0 to 10.”

Depending on the score, they are divided into three categories – Promoters (9-10); Neutrals (7-8); & Detractors (0-6). Promoters are the most engaged workers. They are more likely to recommend your company to other people. Whereas, detractors are against advocating for your company or employer. 

To calculate eNPS, 

eNPS = % Promoters – % Detractors

You should look to achieve positive eNPS. Negative eNPS implies that HR needs to come up with initiatives to increase employees’ motivation and keep them more engaged. 

3. Offer Acceptance Rate (OAR)

Offer acceptance rate (OAR) helps you understand how effective your recruiting process is. It refers to the percentage of extended offers that are accepted.

OAR = Number of jobs accepted/ Number of jobs given

A strong OAR indicates that the team has created an effective interview process and successfully filled a pipeline. OAR gives you insights into how attractive the position is for the outsiders. 

But a low OAR needs to be addressed. There could be many reasons as to why candidates are not accepting the offer letters. It could be because they didn’t find the company culture a right fit for them, the role didn’t seem challenging for their skills, or the interview process was too cumbersome. 

This particular HR dashboard metric ensures that you are able to secure the right talent for your organization. 

4. Total Overtime Cost

Overtime is when an employee works more than the specified number of hours in a week/month. For starters, calculating overtime costs can be quite tricky and complex for accountants. 

And secondly, overtime costs can be quite an expensive cost. Overtime pay is compounded by added costs in taxes and other compensations. 

If your HR dashboard shows high total overtime costs, you likely need to hire more people to allocate work efficiently. It’s also an indication that you might want to improve how the tasks are assigned to employees.

5. A metric for your top HR initiative

Despite some basic HR metrics, every HR department varies in its goals and initiatives. It could range from bringing diversity in their work culture to enrolling training programs for employees’ growth. Based on your initiatives, you can include relevant data sets to track. 

For instance, if you want to enhance employee productivity at work, you can monitor employee performance review ratings. Similarly, for employees’ skills development, you can track training course completion rates. 

Every metric in your HR dashboard should be tied down to achieving organizational success. 

Examples of HR Dashboards

Now that you know some of the essential HR dashboard metrics, it’s time to look at a few leading HR dashboards. 

1. Jobvite

Jobvite offers an analytics HR dashboard and end-to-end recruiting data aimed at helping recruiters and stakeholders make proactive decisions based on data-driven insights. It has a simple yet intuitive interface that allows tracking a vast number of HR metrics. 

2. Workday

Workday provides a powerful HR dashboard where users can combine the system data with non-native data for more detailed reports. It is an all-in-one platform for human capital management, providing insights on employee performance, retention, absenteeism, and more.

3. BambooHR

BambooHR offers a clean and concise dashboard that allows users to monitor different, relevant HR metrics. These include PTO usage, employee turnover, and more. It can generate insightful, easy-to-read reports in just a matter of a few minutes. 

Key Takeaways

Businesses need to maintain a balance between measuring nothing and measuring everything. All HR managers can follow these steps in the process of adopting an HR metrics dashboard:

• Identify why you need the information
• Identify who needs that information
• Determine the metric to define those data

Wrapping Up

Monitoring data alone won’t help you bring any change in the organization. Taking action is of utmost importance. 

For instance, simply monitoring the absenteeism rate on a quarterly or annual basis will bring no value. Businesses will need to find the underlying cause of it and try to rectify the situation. 

Try to find insights into the situations if you want to see some real effect of tracking HR metrics. 

Need any assistance in picking up the right HR dashboard for your business? Contact us.