As in all cases, the first step in outlining your recruiting metric is to ask, what are we trying to solve? Every business is at different stages, strategy development, aligning your recruiting strategy with your business goals will always be key. Let's begin, creating your recruiting strategy and measuring its success, you want to look at things like, what is your reputation in the industry? Where does your company lineup compared to competition? Things to think about when creating your strategy is, what does a good hire look like? How do we reward and monitor the actual recruiters? Do you have a bench for your next level performers and what is your employee value proposition? Quality of hire is the most underutilized metric in human resources, if we can effectively manage and measure the output of a hire in the first 6-12 months compared to that of an average worker, we have the ability to adjust our hiring and recruiting strategies as well as the competencies that create an effective contribution to the bottom line. Let's go through a few other quality metrics that you can do for your hiring function, quality, we talked about the percent of new hires to perform or out deliver the top sales quotas, the percent of hires who outperform their prior hiring group a year ago. Look at things like turnover percent and retention percent of top performers, where are they going? Quantity of hires, let's look at these, the percent of applicants who click on a job and apply versus those who don't, why do you care about this very cumbersome application processes? Great hires don't want to take the time to apply, so think through what are the steps that someone needs to go to apply for a job at your company. What percent of applicants are hired internally? This helps you look at not only a internal promotion process, but it helps you look at, do you think that your internal team has the right competencies to build your business to the next level? What are the number of associates who are terminating within the first six months, nine months, a year? This is important because it's going to also help you back into the quality of your hires. What are the percent of the applications that you receive for under-represented groups and what percent of those under-represented groups do you hire? This helps you with diversity, this will also help you determine if you are losing more people than you are hiring in. What is your speed or time to hire? If you look at the response to initial requisition, how long does it take for your hire to be fully hired? Do they have three interviews, 12 interviews? What's that process look like? How long does it take for a new hire to be fully trained? We call it get to bright in my organization, so how long are they fully able to get to the end result of making their sales quota or knowing a process without depending on other people. This metric is really important because it also can help you determine the cost of terminations. Lastly, look at time from interview, selection, and hire numbers, that's important because if the process takes too long or if it's too fast, it could be impacting your quality or quantity of higher metrics. Customer satisfaction, what percent of your candidates are satisfied with the entire process? Do you interview or survey both candidates you didn't hire and the ones that you did hire? Do you survey your managers to see if they're satisfied with your candidate selection? Do you get feedback from stay interviews or from candidates in general? Then let's look at money and cost, what percent or dollar amount produced of a salary versus a team member is happening with the new hire. If you look at the starting pay of a new hire versus the industry, what are you paying? Are you underpaying, overpaying, are you paying right in the middle? Why does that matter? Because as you build a five-point metric story, let's say you hire someone at the low end of the pay scale, but you're realizing that your turnover is quite high or that your quality of hire is less than those that you pay in the middle of the pay scale. These different attributes of the hiring functions will help you determine where you might have gaps in your overall hiring methodology. The costs of an employment service. Think of a temp agency, versus the industry norms, versus if you were to hire them yourselves. Then also what's the profit per employee? If you look at just cost per hire but you don't look at how much money that person brings in, you might be measuring something that's giving you the wrong lens to look at. As you can see with this, many of these metrics are easily combined to make a five-point metrics story. Another example, if we focus on diversifying our talent pool, we could say 50 percent of our recent hires are underrepresented. However, if we're losing 75 percent of those hires then our hiring efforts aren't very effective. It's important that you look at each of these attributes because they will help you find gaps, achieve a goal, or solve a problem. Each of the attributes will tie into your story, and that's what's critical. First and foremost, you need to know what you're trying to solve. Now let's look at training. Training in my opinion is the most complex function in HR. Roughly 50 percent of organizations training sits inside HR, the other 50 percent it's outside. In multiple surveys, when training does sit inside HR, it's not being measured. It goes without saying, the employees development is both an intrinsic and extrinsic need and value to the employee and the business. Businesses will invest a significant amount of money in both formal and informal training of employees. Measuring what works and what doesn't is critical to the success of any organization. Specifically an HR team looking to invest in more training and development tools. Effectively measuring training depends on where your organization's training strategy sits. If you do not have a strategy yet, it's time to create one. One of L&Ds primary responsibilities is to manage the development of people and to do so in a way that supports key business priorities. If we bring ourselves back to the five attributes of a metric, the quality of our training is key. Are you measuring performance differentiation? For example, when reviewing performance and talent assessments, think of your name box. Are your managers ranking every employee a rock star? And if so, does that align with the bottom line numbers in that business unit? If not, what are you going to do? What tools and trainings are you going to offer managers to help them better differentiate? How are you going to help equip them to effectively rate people, coach them, and develop them. Think about quantity. Are you looking at what training courses you offer, the time it takes to complete and what you're getting out of it? How is the business benefiting? With online tools, classes, and courses, it's easy to buy the farm. But are you measuring what you're buying and what you're getting from it. This really does dovetail nicely until looking at money and cost metrics as well. Let's talk about time in speed metrics. These are critical in my organization. In a warehouse world, this speed to which employees can effectively pick, pack and ship is tremendous. It allows us to monitor if our quality of training is matching our expectation for time to speed of being what we call, bright. Lastly, in a world were continuous development and personal need for growth is key to the employee experience. Are you measuring what your employees and managers are asking for and what you're delivering? HR is more important than just the administer of compliance trainings. We make or break our business outcomes. The L&D team needs to offer trainings and development that enhances the core competencies of our business needs, which will help us evolve and grow. This means you need to measure, if you're trainings are effective in adding to the core competencies and the value that puts your business on the map. As you create your strategies, you will want to ensure your trainings are adding interest value to your employees while also giving bottom line value to your employer. As we wrap up this module, we must look at the overall rewards we offer our employees. Total rewards are typically the benefits, compensation and rewards. Think perks, bonuses and commissions that create the overall monetary package an employee receives in working for your company. Rewards are key drivers in attracting and retaining employees. There is much more than being the highest paying company to attract or the company with the least number of perks or rewards to detract a person from accepting an offer. In the critical to map out your reward strategy to ensure that it aligns with your company's structure, goals, and culture. You will also find reward strategies cross and impact almost every HR function. The total rewards function in HR must ensure it is effectively measuring ROI, as healthcare and salaries are the highest spend in almost every company. ROI, cost, revenue impact, increased productivity, and performance, these are key metrics HR should measure and all of these can be found in the rewards function. Let's talk compensation. Are you renewing your internal and external benchmarks and comparing those comfort ratios to your hiring practices? For example, how many people are accepting the job? How many counteroffers are you asked to review? How many counteroffers are you extending to keep an employee? Do you know where they're leaving to? Have you looked at your internal equity between underrepresented groups? Why is this important? Because you can review internal and external compensation programs to determine if you need to lift and shift your pay practices. How well are you monitoring and measuring your employee's understanding of the packages they are being offered? The total rewards package is beyond just pay. Do employees know how much they are truly costing your company? Are you communicating, highlighting, and benchmarking your program, bonuses, time off, and pay? What about other perks that you give to your employees? Are you monetizing this? Additionally, how do you reward employees? In a world where we hear pay-for-performance, are you really paying for performance, and are you measuring this? When you look at your commissions and bonuses, are they differentiated enough? Are you truly paying the lion's share of your dollars to those who bring in the most impact to your bottom line? Does your company value risk-taking? If so, how do you reward that? Are you highlighting and communicating those risk-takers and the rewards in which they are receiving? It is critical to measure the cost of your programs and how they drive bottom-line growth. Here is where your rewards and learning programs cross and metrics can be measured together. Benefits think health care is the most metric packed function in HR. It is also a critical component in the rewards package. Realizing the overall costs of health care and it's continued rise, is an important aspect, both in attracting employees and your ability to look at your overall plan utilization versus gesture plan enrollment. When you look at your plan utilization, you can determine what benefits people use and don't use. You can then make changes to your health care programs with a bigger bottom-line impact for the business and less employed disruption. The healthcare space is booming a savings opportunities. Are you looking at your workers' compensation claims and comparing them with your short and long-term disability rates? Are you monitoring PTO usage? Do you see a correlation and burnout, fatigue, and mental health concerns? This is another example of where training, engagement, and turnover data can be helped and enhanced by looking at your healthcare data. Your rewards function allows for greater metric transparency. In organizations that do not yet have a defined DNIT, you can incorporate diversity and equity metrics in your reward strategy. For example, how are your referral programs outlined and established? Do your programs have an unconscious bias in them? As you review the reasons why people come, leave, and stay, Many times, the reward function has a large impact on the answers to these questions. You can incorporate how underrepresented groups are being impacted by your referral programs, pay practices, and benefits and if you find correlations, you can use this data to fix them. As you can see, the reward function touches each and every function in HR. How you reward recruiting, attract, and retain employees, reward employees, and train employees are all co-own strategies between the various HR functions. This is a fantastic example in which metrics collide together. The importance of a five-point story and creating a meaningful metric to solve business problems. In most cases, the metric solve, the solution, and the data will reveal a larger answer than just one single function's KPI or metric concern.
