Arshia Wasif Ahmed, Candidate Acceptance Rate, car, Diversity Percentage, DP, HR metrics, HR metrics to use in Pakistan, Incremental Revenue to Compensation Ratio, IRCR, Recruitment Response Time, RRT
Management experts in Pakistan believe that in 2016, HR Departments will be able to add even more strategic value to their organisations if they utilise the following HR metrics (tools that use concrete data to analyse and forecast workforce trends).
If you are an HR professional, here are four metrics you should think
about in 2016:
1. Candidate Acceptance Rate (CAR) is calculated by dividing the number of candidates who accepted job offers by the total number of formal job offers extended by an organisation. The higher the CAR, the more effective the HR Department has been in promoting the organisation as an employer of choice. If the CAR is substantially lower than the industry average, then you must investigate the reasons causing this and devise remedial strategies.
2. Diversity Percentage (DP) is calculated by dividing the number of employees who self-identify themselves as members of a recognised diversity category (be it disabled or minorities) by the total workforce headcount. The higher the DP, the more egalitarian the organisational culture. This metric is important in promoting your organisation’s image as an Equal Opportunities Employer, an increasingly important consideration for Generation Z employees.
3. Incremental Revenue to Compensation Ratio (IRCR) is calculated by dividing the increase in the organisation’s revenue by the increase in salaries within a designated time period. A high IRCR suggests efficient and effective recruitment because it indicates that every new employee is contributing more monetary value than the compensation expenditure the organisation incurs in retaining his or her services.
4. Recruitment Response Time (RRT) is defined as the time taken to fill a vacancy. Your aim should be to minimise this metric; RRTs should ideally range between three and six weeks – without compromising on the quality of hires. To do so, stay tuned to the feelings of your employees and observe their attitude towards their work. This will help identify employees who are considering a job switch – prior knowledge will give you a heads-up in searching for replacements.
– Arshia Wasif Ahmed
The writer is a corporate trainer.