Cheezhead Recruiting News and Opinion

Here is more research that shows why measuring metrics in recruiting yields higher productivity rates.

The Institute for Corporate Productivity recently did a study on HR metrics that demonstrated how higher-performing companies are more apt to measure talent-related metrics than lower performers.

The study evaluated 556 organizations and their common talent-related metrics including movement within the organization, quality of hires, quality of promotions and the cost of training/development.

Results shows that ninety-three percent of higher performers measure employee engagement, compared with 79% of lower performers. In addition, ninety-three percent of higher performers utilize employee engagement surveys, compared with 78% of lower performers. Ninety percent of high performers report the use of satisfaction surveys for such measures, compared with 68% of lower performers.

The study also found several other significant traits for high-performing organizations. For example, 71% of higher performers measure compliance or completion of diversity plans (52% in lower-performing companies), and 61% of higher performers, compared with 39% of lower performers, consider employee referral rates.

Conversely, the study showed that 78% of lower-performing organizations measure total labor cost to cost revenue percentage, compared with 55% of high-performing organizations. A higher percentage of lower performers (44%) also measure the employee-to-productivity-output ratio than higher-performing companies (25%).

When tracking attrition, HR is more likely to want to know how many workers leave than who is heading out the door. Overall, 81% of polled companies use turnover and voluntary termination rates in their measurement of attrition, and 74% measure length of service. On the flip side, just 40% measure termination by variables such as job grade, costs or demographics, and just 38% the termination rates of both high-potential employees and termination rates by “pivotal job.”

Study findings showed, however, that higher-performing companies are more likely to analyze who is leaving. In companies with more than 10,000 employees, 72% measure grade, costs and demographics, while 59% track the loss of high-potentials and 55% track by pivotal job.

But the study also found some areas that need vast improvement on on both ends of the performance spectrum. When it comes to employees moving within the organization, most companies are not adept at tracking those movements. Overall, 34% measure worker movement from job level, classification or rank, while 29% measure by types of move (upward, downward, lateral, short-term, etc.) and 23% track movement by demographic variables.

Entire results can be found here.

Popularity: unranked [?]