What Metrics Should Companies Care About?

When running a successful business, it’s important to know what to measure. Keeping an eye on the right numbers can help you understand your team better and create a great workplace.

Here are four key metrics that HR and management should pay attention to:

1. Employee Net Promoter Score (eNPS)

The Employee Net Promoter Score (eNPS) helps you see how happy your employees are. You ask them how likely they are to recommend your company to a friend.

• How It Works: Employees rate their likelihood on a scale from 0 to 10. Those who rate you 9 or 10 are promoters, while those who score 0 to 6 are detractors. The eNPS is found by subtracting the percentage of detractors from the percentage of promoters.
• Why It Matters: A high eNPS means your employees are engaged and satisfied. If it’s low, it may point to issues in your workplace that need fixing. Checking this score regularly can help you understand how your team feels and where to improve.

2. Recruitment Indicators

Recruitment indicators help you see how well your hiring process works. These numbers show if you’re attracting the right people for your team.

• Key Indicators to Track:
  • Time to Fill: This tells you how long it takes to hire someone. If it takes too long, your process may need some changes.
  • Quality of Hire: This measures how well new hires perform after joining. If they’re not meeting expectations, you might need to rethink your recruitment strategy.
• Why They Matter: Tracking these indicators helps you speed up hiring and find better candidates, ensuring your team has the right skills and fit for your company.

3. Turnover Rates

Turnover rates show how often employees leave your company. This metric is essential for understanding employee retention.

• How to Calculate: You find the turnover rate by dividing the number of employees who leave by the average number of employees during a specific time.
• What to Look For: High turnover rates can indicate problems like low morale or a lack of growth opportunities. Listening to feedback from employees who leave can give you insights into what might be going wrong.
• Why It Matters: Knowing your turnover rate helps you identify trends and take steps to keep your best employees happy. A low turnover rate usually means a more satisfied and stable workforce.

4. Learning and Development (L&D) Metrics

Investing in employee growth is vital, and L&D metrics can help you see how effective your training programs are.

• Key Metrics to Track:
  • Training Completion Rates: This tells you how many employees finish the training programs you offer.
  • Skill Acquisition: This shows if employees are learning the skills they need.
  • Employee Performance Post-Training: Look at whether there’s an improvement in performance after training is completed.
• Why They Matter: Tracking L&D metrics ensures your training is working and meeting employee needs. This investment shows you care about their growth and can lead to higher job satisfaction and retention.

Final Notes

Monitoring metrics like eNPS, recruitment indicators, turnover rates, and L&D metrics can greatly improve your company culture and performance. By focusing on these areas, you can boost employee happiness and create a workplace where everyone thrives.

Need help with these metrics in your company? At Culture Works, we can assist you in building a strong and positive work environment. 

Need Help Tracking Your HR Metrics and KPIs?

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Read on for more information about our culture assessment and other services. Then, check out our article to learn how to bring emotional intelligence into the workplace.