Basic metrics of effective work of the HR department. Part 1

In the mass consciousness, the phrase “HR manager” has long been synonymous with the definition of “recruiter”. The negative consequences of the substitution of concepts are obvious-professional degradation. From some average HR Julia is no longer required to conduct complex analytics and has a keen sense of the pulse of the company’s life. The main thing is to close the vacancies.

However, ” HR ” is not a recruiter, his duties include supervising each employee from the first interview and enrollment to dismissal. And the most serious layer of work falls precisely on the period of time that an employee spends in the organization as a unit of the team. The HR manager should participate in the formation of the KPI of employees and departments, monitor the efficiency of work, initiate professional development and in every possible way maintain a healthy atmosphere in the team.

Each of these points implies the presence of serious analytics for the entire state as a whole, and for individual employees in particular. And the data should be objective, not made up on the basis of personal feelings. Unfortunately, not all companies can boast of having tools that allow to collect detailed statistics. For businesses, the lack of basic knowledge always leads to an increase in employee turnover, a decrease in labor efficiency and, as a result, a drop in sales.

It is possible to avoid stagnation if you timely review the approach to personnel management and give HR the necessary tool-analytics. The Mirobase software package allows to collect all the data necessary for the productive work of the HR department and helps to solve the key tasks of the company’s development and employee adaptation.

Search Speed

Search speed is one of the main metrics that characterize the efficiency of the human resources department itself. At first glance, everything is quite simple: the more time it takes to fill a vacant position, the higher the company’s loss. After all, during this time, HR will receive a salary, and the tasks that require a new employee will not be completed.

When it comes to this indicator, almost all publications and business gurus speak in streamlined phrases that boil down to the thesis: “if you can’t find a new employee, there are problems in the company.” Which may be related to: incompetence of the HR manager, excessive requirements for the candidate, uncompetitive salary, too long resume processing process, and so on. The fact is that if you do not determine exactly at what stage the failure occurs, you will not be able to cut this Gordian knot.

With the help of Mirobase you can fix the situation in just a week. The analysis of work activity will allow to find out whether HR spends time on fulfilling job responsibilities or prefers to devote the working day to more “interesting activities”, such as coffee or social networks.

The study of correspondence in mail and messengers will give answers to questions: how quickly resumes are processed; how well HR reasonably and competently communicates with candidates; what difficulties exist with the current open vacancies and whether they meet the requirements of the labor market.

Having detected a “malfunction”, the manager will be able to reduce the time of filling an open position.

Losses from the quit of key personnel

The dismissal of an employee is a blow to the company, which leads to significant losses. And the higher the position, or the level of training of the outgoing, the more tangible the consequences.
HR should measure the percentage of voluntary layoffs relative to the total number of employees in a given position. But his duties do not end there. Ideally, the departure of a key employee should not come as a surprise to the company.

Finding dissatisfied people is not too difficult. Frequent visits to sites with work – the main indicator of the growth of dissatisfaction. Which can also be expressed in correspondence with colleagues. Well, sending emails with resume attachments is a direct alarm signal.

Fortunately, Mirobase allows to detect negative trends in a timely manner. And the HR manager will only have to hold a conversation and retain a talented employee or start looking for a replacement in advance.

The HR manager’s work is closely linked to all aspects of the company’s life. His direct responsibilities include the adaptation of newcomers, supervision of employees and departments, participation in the formation of key performance indicators, and analysis of the company’s performance based on the profit received.

By leveling the role of HR, the manager significantly complicates his life: expenses remain at the same level, but some of the work is not performed by anyone, and important nuances of the activity are out of control.

In the previous article, we discussed the basic metrics that should be monitored by the HR manager, as well as the KPI that characterize the productivity of the HR department itself. Today we will talk about not less important parameters of HR’s work.

Time of achieving performance

The time to achieve productivity is the point when a new employee begins to demonstrate the minimum required level of labor efficiency.

By determining the average number of days it takes to reach this target, the manager will be able to assess the quality of the adaptation program, as well as the work done by the HR manager.
If newcomers do not reach the specified KPIs in isolated cases, it is obvious that a mistake was made in the hiring process. However, if the problem has become widespread, you should pay close attention to the work of the personnel officer.

To find out whether HR works for the benefit of the company, or prefers to deal with personal matters, the report “Activity feed”, provided in the complex Mirobase, will help. If the HR manager turned out to be a workaholic, you will have to dig much deeper.

First, you should find employees who have successfully reached the specified labor standards and analyze their behavior patterns. And then compare the algorithms of the “leaders” with the “laggards”. For this purpose, the report “Categories/Deviations” is suitable.

Differences in actions and approach to completing tasks are the key to success, which allows you to achieve the desired KPIs. By identifying the deviations inherent in “leaders”, studying successful practices and implementing them in the adaptation and training program, the head will increase the percentage of employees who quickly reach the minimum productivity threshold.

Increase of employee efficiency

The assessment of changes in the effectiveness of each employee in particular and of the departments as a whole is a marker of the quality of recruitment and adaptation of personnel in the team.
If each new employee performs better than his predecessor, and the “old-timers” do not sit still, preferring to constantly develop, labor productivity will steadily increase, affecting the overall efficiency of the company.

Despite the fact that the importance of these indicators is not in doubt, because of the pitfalls, their assessment with enviable regularity is wrong.

How to track the productivity of each employee? The “correct” template solution is to force the staff to write reports, having previously stipulated the KPI. But will such pieces of paper reflect reality?

Firstly, a small change in the numbers in the documentation in a second turns the idler into a heroic worker. And, secondly, most of these reports are not based on objective figures of the working day picture.

These problems are easily solved by Mirobase. The complex registers all the actions of the staff at the computer during working hours, and synchronization with the ACS complements the picture, recording movements around the office. Data collection does not affect the performance of computers, and the creation of reports takes a few minutes.

Creating personal reports is an excellent practice, which should not be abandoned, provided that it is supplemented with statistics of the electronic system, and there is no deception – distorting key performance indicators to please yourself. This can also be controlled by “Mirobase, which has the tool “Verification of falsifications” in its database. Any “manual” intervention in the flow of numbers leaves an indelible mark, which immediately fixes the complex.

The HR manager is an important link in the life of the company. Its tasks include searching for candidates, improving the skills of personnel, minimizing reputational risks while reducing staff. All actions of the HR manager have a direct impact on the level of efficiency of the company. If you let things take their course, and do not evaluate the effectiveness of the activities carried out, the company will stagnate, increase costs and reduce revenue.

In the first article of the series devoted to the use of analytics in the work of the HR department, we talked about the basic KPIs that allow us to evaluate the actions of the HR manager. In the second-about the parameters that need to be controlled by HR, and in the final material we will continue this topic.

Average performance rating

Average performance rating – a system for evaluating work in percentages or points. It is important for the HR manager not only to implement this practice in the organization, but also to conduct regularly cross-sections. Beginners should be evaluated at intervals of 3 months, “old — timers” – at intervals of six months. Do not forget to compare the dynamics of the work of the departments as a whole – this data can become a marker of changes in the atmosphere in the team.

The increase in the average value for individual employees indicates a qualitative improvement in training.

It is important not just to calculate the rating, but also to correlate it with profit. After all, first, the increasing contribution of employees should have a positive impact on financial flows. And, secondly, the increase in labor efficiency should always be higher than the increase in the percentage of salary expenses for the year. Simply put, while maintaining the cost fund at the same level, the profit from the activities of the staff, in a normal situation, increases.

“On paper” everything seems simple and obvious. But in life, unfortunately, it happens a little differently, and the average performance rating, with enviable persistence, does not move from the dead point. The HR manager begins to frantically search for the problem, inviting all sorts of business coaches, implementing “best practices” from the Internet and making a thousand and one more chaotic body movements that do not bring the desired effect. All this happens against the background of irrevocably passing time.

The Mirobase software package will help to cope with the task of HR. Instead of implementing incomprehensible tips that are based on someone else’s experience and completely different realities, it is easier to find working effective models in your own, native, company. To do this, it is enough to identify the “leaders” and analyze how their actions differ from the behavior of the “laggards”. The “Categories/Deviations” report can solve the problem. Differences in the performance of the same tasks are often the “success factor”. Companies using “Mirobase software conducted analytics and found that a productive manager responds to requests faster, sends out more correspondence, and has a wider range of contacts than his colleagues. The indicators that distinguish a “leader” from an “outsider” vary from business to business. But the principle is always the same. As the famous English expression says – “the devil is in the details”. Only by detecting the little things that directly affect productivity, which are specific to a particular type of business in the current environment, can we achieve an increase in financial performance. The implementation of other people’s practices, in 9 cases out of 10, leads to a deterioration of the situation. It is impossible to find the notorious “small differences” by eye, without the use of digital systems.

Another key point for HR, which Mirobase will help to understand: the analysis of the performance rating of departments. There are often situations when, against the general background of growth, a division is not only showing dynamics, but also sharply losing ground. And this is despite the fact that the company has found and implemented effective work models.
The reason for this phenomenon is often a hidden conflict that has gone beyond the “one-on-one” confrontation. This can be a mass bullying of the “white raven”, during which brothers in trade begin to think not about work, but about how to annoy a neighbor. Or the confrontation of groups in the team, differently assessing the current processes in the company. In the end, a change of head, and the non-recognition of the new head as part of the subordinates – is a great reason for confrontation.

By monitoring communication in messengers, correspondence and the circle of contacts, the head, and with him HR, will promptly detect such a situation, understand the root causes and stop the development of a conflict that negatively affects work processes.

The HR manager’s job consists of 90% analytics, and only 10% of the time is spent searching for new employees. The success of all 100% of the tasks depends on the availability of operational information based on facts, not assumptions. In order for newcomers to quickly feel like they belong in the team, labor productivity has reached the desired level, and KPI has worked, it is necessary to evaluate a number of key indicators on a daily basis. And this is not possible without analytics systems that aggregate data. Mirobase will help to collect the necessary information, conduct research activities, evaluate the implemented changes and will constantly have a keen sense of the pulse of the company’s life.

Thanks to the monitoring of personnel actions and a variety of reports, HR will finally be able to perform all the duties assigned to it and will no longer be a regular recruiter.