6.25.1 Key Performance Indicators (KPIs) in HRM

• What are KPIs in HRM used for?

  Track and assess effectiveness
• The Employee Turnover Rate measures the percentage of employees who leave within a specific period
• What does the Employee Satisfaction Score assess?

  Happiness with job conditions
• Time to Hire calculates the duration to fill a vacant position.
• Training Effectiveness evaluates how well training programs improve employee skills
• What does the Cost per Hire determine?

  Expenses for recruiting and onboarding
• HR KPIs should be aligned with broader organizational goals.
• What is the purpose of the Employee Turnover Rate KPI?

  Measures employee retention
• The Employee Satisfaction Score assesses employee happiness with their jobs and working conditions
• Time to Hire measures the time taken to recruit a new employee.
• What is the Cost per Hire used to determine?

  Total expenses for onboarding
• KPIs in HRM help organizations understand if HRM activities are contributing to broader goals.
• Match the HR KPI with its description:

  Employee Turnover Rate ↔️ Measures employees who leave

  Employee Satisfaction Score ↔️ Assesses happiness with jobs

  Time to Hire ↔️ Calculates duration to fill roles

  Training Effectiveness ↔️ Evaluates skill improvement
• Why are KPIs essential in HRM?

  Track performance and align goals
• KPIs provide objective data for data-driven decisions in HRM.
• Time to Hire is measured in days to improve recruitment efficiency
• What is the focus of analysing HR KPI data?

  Identifying patterns and insights
• Interpreting HR KPI data relies on strategic knowledge and experience.
• Key Performance Indicators are measurable metrics used to track the effectiveness of HRM practices
• What are Key Performance Indicators (KPIs) in HRM used to track and assess?

  HRM practices and strategies
• Key Performance Indicators are measurable metrics used to track and assess the effectiveness and efficiency of HRM practices
• KPIs in HRM help organizations understand whether their HRM activities are contributing to overall goals.
• What does the Employee Turnover Rate measure?

  Employees who leave within a year
• The Employee Turnover Rate measures the percentage of employees who leave within a year
• Employee Satisfaction Score assesses how happy employees are with their working conditions.
• What does the Time to Hire KPI calculate?

  Time to fill a vacancy
• The Time to Hire KPI calculates the time it takes to fill a vacant position
• Training Effectiveness evaluates how well training programs improve skills.
• What does the Cost per Hire KPI determine?

  Expenses of hiring employees
• The Cost per Hire KPI determines the expenses associated with hiring new employees
• Steps to improve employee retention based on HR KPIs

  1️⃣ Measure Employee Turnover Rate

  2️⃣ Assess Employee Satisfaction Score

  3️⃣ Analyze reasons for employee turnover

  4️⃣ Develop retention programs

  5️⃣ Track retention program effectiveness
• HR KPIs provide actionable insights to enhance HR practices and support organizational goals.
• Why are KPIs essential in HRM for tracking performance?

  Align with business goals
• KPIs are essential in HRM for tracking performance, improving outcomes, and aligning HRM with business
• KPIs in HRM provide data-driven decisions, highlight areas for performance improvement, and ensure strategic alignment.
• What is one key benefit of using KPIs in HRM?

  Data-driven decisions
• Match the HR KPI with its purpose:

  Employee Turnover Rate ↔️ Identify retention issues

  Employee Satisfaction Score ↔️ Assess employee happiness

  Time to Hire ↔️ Improve recruitment efficiency

  Training Effectiveness ↔️ Measure learning impact
• What do KPIs highlight in HRM for continuous improvement?

  Areas needing enhancement
• KPIs ensure HR contributes to business objectives
• Measuring HR KPI effectiveness involves tracking performance against strategic goals.