Let’s start with the simplest of all. The number of Full Time employees in the business.
Not all the people in your company are going to be employees. So it’s a good idea to also track the number of Contractors in the business. You could also track Part-time Employees.
When you know how many people you have, you can combine it with your revenue KPI to calculate the Revenue Per Employee.
The best companies are able to maintain or even accelerate their Revenue Per Employee. It indicates that the company is achieving economies of scale and understand the increasing or decreasing efficiency of the business.
Employee Happiness and company performance are linked. This is why employee surveys are becoming commonplace as they allow you to track KPIs like Employee Happiness which is the % of people self-selecting a level of happiness like Very Happy.
Similar to Employee Happiness is a KPI called Employee Satisfaction. Again this is captured through a survey and can be expressed as an Index.
A KPI that should correlate with Happiness and Satisfaction is the Absenteeism Rate. Happy employees take less sick days. If they don’t correlate or absenteeism is too high you should find out what is wrong.
How long your talent stays is another indication of how you’re going to perform. So tracking the Average Length Of Time Employed is an essential KPI to track and create goals from.
People will leave the company. It’s really useful to track the number of employees that have voluntarily left.
It’s also useful to know the flipside of that coin. The number of employees that have involuntarily left the company.
A variation on the leaver theme is The Staff Attrition Rate, which is the % of employees that leave in a given period divided by average number of employees in the same period.
People leave and need to be replaced. You also need to hire for growth. Hiring talent can be an expensive process and tracking the Cost Per Hire means you can focus on ways to reduce it, and understand the cost of not retaining talent.
One of the ways you can bring down the Cost Per Hire is to get more candidates and hires referred by existing employees. Again, tracking this as a KPI and then using it as a Key Result means you focus on ways to improve it.
Vacancies that remain unfilled can be costly. Which is why you’d want to track and focus on reducing the average amount of time it takes to fill a job vacancy.
Measuring interviews per hire is a good indication of your ability to attract talent for interview. You’d rather not be seeing only one person per hire. The KPI is simple and literally the average number of interviews required to fill positions during a period.
Hiring from within is always a good sign of company health, assuming people have the ability to step-up. It also shows other employees that the company is a place where people are able to progress and evolve. So track the ratio of jobs filled through internal promotion vs an external hire.
If you’ve attracted talent to interviews, job offers should follow. But interviews are a two way process and the best candidates need to say yes. So tracking the job acceptance to job offers made as a % makes sense as it would indicate hiring challenges and also provides a focus for improvement.
If you hire well people settle quickly and stay. You will need to track KPIs like the % of new hires that leave in the first 90 days to diagnose issues and set goals.
Glassdoor is going to be reviewed by people you’re looking to attract as well as used by current employees. You need to track and target improvements. Here are KPIs you should keep track of and set goals against.
If you want to improve KPIs, creating KPI Dashboards is the natural next step.
These KPIs can and should also be used inside Key Results as part of setting goals using OKRs. Remember that when setting your targets to be ambitious. Goals are deliberately designed to be hard to achieve, as this is what drives greater creativity, efficiency and effectiveness.
You can integrate Google Analytics and other Marketing Analytics Software to make the updating of metrics easy, or update KPIs manually.
Inside ZOKRI you can create Dashboards and create OKRs from KPIs. You can also create and manage Initiatives targeting these KPIs and OKRs in ZOKRI or by connecting task managers like Trello and Asana.
Measuring KPIs that matters, setting goals and aligning and optimizing your operations is the key to performance growth and is what ZOKRI is designed to do.
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