HRD KPIs are a must-know metric for a company’s HR team. Starting from the recruitment of new employees to managing employee productivity performance.
There are several HRD KPI indicators to measure employee performance.
Then, what are the indicators and how to measure HRD KPIs?
Read Also : What is HR Analytics? Definition, Benefits And Types
What are HR KPIs?
Key Performance Indicators (KPI) are guidelines for measuring the performance of each employee activity in a company. The HRD team is responsible for determining KPI indicators and also obtaining KPI assessments.
Meanwhile, the KPI for HRD is a metric for measuring the performance of the human resources department in an organization, both in terms of processes, programs or activities related to human resource development .
The HRD KPI serves to see the HR program in a measurable manner and has clear targets to ensure conformity with the company’s overall goals.
Read Also : Tax Accounting: Definition, Principles, Classification and Functions
List of KPIs for HRD
Here are some examples of KPI lists that can be used in the HRD field, including:
1. Level of employee satisfaction
This KPI measures the extent to which employees are satisfied with the work environment and HRD policies.
Employee satisfaction is very important to keep employees in the company. This can reduce the company’s turnover rate .
HRD can conduct regular surveys of company employees.
2. The amount of training
Companies can provide employee skill development according to the field of work.
HRD can measure how much training exists and has an impact on company growth.
3. Level of employee engagement
This KPI measures the extent to which employees are involved and participate in company activities.
Companies can provide jobdesk trust to employees. In addition, there are several corporate events that can be managed by the company.
Read Also : What is CRM? Definition, Benefits, Types and CRM Strategy Tips
4. Employee attendance rate
Employee attendance attendance can measure employee engagement at work.
This attendance indicator can provide information on the level of employee motivation towards work and contribution to company achievement.
For example, employees tend to take time off because they have no motivation to work or are unable to attend.
Steps for HRD can look for ways to lower absenteeism.
5. Cost per Hire
This indicator is used by HRD to measure the amount of costs invested for each employee.
The costs in question can be in the form of job advertisements, time to select candidates, up to the interview stage.
In addition, this fee also includes initial training when employees enter (onboarding).
Through this metric, the HR team can help other departments manage costs when recruiting.
6. Rate of layoffs
Calculation of the rate of termination of employment (PHK) by the company is referred to as the dismissal rate. This KPI is very important for the HRD field.
This indicator can be influenced by several factors, including:
- Employment contract
- Resign
- Pension
In the event of a forced layoff by the company, the HR team must conduct an investigation into the condition of the company and employees.
Read Also : 5 Examples of Employee Attendance Reports that are Often Used by HR
7. Overtime
Employees who take overtime can be related to the attendance level indicator.
If employees do overtime work, they will often take time off to rest.
HRD can identify increased overtime, including:
- Heavy workload.
- There are still flaws in the work process.
- Lack of personnel involved in the workflow .
8. Turnover Rate
The percentage of employees who resign within a certain time is known as the turnover rate.
If the turnover rate is high, it can indicate that employees are dissatisfied with working for the company.
Through the turnover rate , HRD can make a map for compensation adjustments, work environment, to corporate culture so that employees survive.
Read Also : Financial Management: Definition, Principles, Functions and Tips
9. Salary Ratio with Competitors
The percentage of salary is one of the important points when an employee accepts a job.
This HRD KPI is to measure the competitive salary offered by the company compared to competitors for similar positions.
HRD is responsible for being able to recruit talented candidates for the company.
The higher the salary the company offers, the more attractive it will be to talented candidates.
10. Net Promoter Score
Employees can recommend their workplace to others as an ideal workplace.
The HR team can provide surveys through interviews so they can find out what aspects can be improved for company branding .
Examples of HR KPIs
HRD KPIs from one company to another will definitely differ according to the function of the employee’s position.
The example of the HRD KPI above will be in accordance with the HRD position which has the task of carrying out employee recruitment, administration such as payroll , skill development, to the general affairs work area .
The HRD team can create a KPI table in excel. However, to make it more practical and automated, the HR team can use an employee performance appraisal application .
How to Measure HRD KPIs
Here are some ways to measure HRD KPIs, including:
1. Budget Calculation
The first point is to measure KPIs by calculating the budgeted expenses that come out according to the agreement within a certain period.
Successful KPIs will have an impact on a more efficient and targeted budget .
2. KPI Success Rate
The hope is that KPIs are successful and can have a positive impact on the company.
For example, there is a travel program for employees. After completing the program, employees are more enthusiastic and their work productivity has also increased.
Read Also : What are SOPs? Definition, Benefits and Examples
3. Unexpected Costs
In addition to the costs that have been set, there are still unexpected costs incurred during the KPI.
Therefore, the HR team can take these unexpected costs into account.
4. ROI calculation
Calculation of return on Investment (ROI) by HR managers by dividing the results of relevant achievements with the amount of expenditure during a certain period.
So, those are some reviews regarding HRD KPIs. Hopefully this article can help you determine what are the indicators and how to make KPIs according to company standards.