HR Metrics, KPIs and Analytics for Small Business Management
When you think about a small business despite the fact that it may not be as complex or difficult to manage as large businesses it still comes with its own risk and challenges. Some of the models and tools that work in large businesses may not work in small businesses.
But for those that work they are still quite useful. For example S.W.O.T. analysis, root cause analysis and even the metrics and analytics model. To go further on the metrics and analytics model because that’s what this topic is based around. It’s simply a tool you can use in your organization that can help you measure your organization’s performance. After you have gathered your data you can then review and analyze it.
This will help you to see where in your organization or what types of operations are performing poorly. That you can then seek find a solution for to solve it. The metrics and analytics strategy can be implemented into almost any area in your small business. Even in human resource management.
Although for small businesses your human resource department may not be as huge as a large business. You are still going to need to use metrics and analytics to help track your performances. This tool can help you to measure recruiting performance, employee performances, sales performances etc.
Under the umbrella of metrics and analytics key performance indicator is a popular tool you can use to help you with measuring your organization’s performance. After you have measured your data you can then use a key performance indicator report to analyze your data.
That could then be communicated to stakeholders or your team on a document using charts, graphs etc. You even use data analytics tools which are getting a lot more common these days through the rise of big data to help you showcase your collected information. A lot of different software could be found online that could help you with this.
Presenting your data through a dashboard could also be another option and a lot of persons tend to use this method as well. Below you can see a list of analytics and metrics you could track in your human resource department.
You are going to measure how often your employees are absent. A small business usually doesn’t have a lot of employees or resources. So depending on the structure of the business having employees absent on a regular basis can affect your organization’s performance. That’s one of the reasons why this is such a useful metric to track.
Tracking the rate of over-time workers in terms of the hours they’ve worked in your business is important. This is really necessary because if your small business is regularly eating into your employee’s personal time this can be bit detrimental.
They will feel overworked and will be forced to leave. You could also set up a better compensation plan for employees who are overworked.
Cost per hire
Measuring the cost that it takes your organization to hire an employee will help you to see if your return on investment is worth it.
Every business would want to hire a top performing employee at a bargain. If your hiring strategy is costing your organization a lot and there is nothing really to show for it. You may want to make some changes.
Analyzing and tracking your employee productivity rate tends to vary by organization and their goals. You can measure your employee productivity by the amount of sales calls they make and convert to customers on a given day. You could even measure the amount of work they get done on a given task. It all varies but the fundamental thing is to measure their performances.
In summary metrics and analytics can be an important tool you can take advantage of in your small business. You can use it to track, measure and analyze the different areas of your business performance.