Ratio of employees to HR staff, labour turnover rates, recruitment and retention and other essential HR metrics for 2017

  23rd January 2017       Private: Bond Williams
 Employment, Company News, Human Resources, Recruitment

Data and analytics are playing an ever more critical role in HR decision-making. The main benefits of using HR metrics and analytics data are better insights resulting in informed decisions within the organisation and enabling HR to be more proactive, according to recent XpertHR research.

Ratio of employees to HR staff, labour turnover rates, recruitment and retention, absence and attendance and reward emerge as key areas for HR metrics data.

At the top of the list, the ratio of employees to HR staff which shows a continuing concern with how to resource and structure HR departments ensuring maximum effectiveness. According to the study, the median number of employees per HR practitioner was 62.5 in 2016, compared with a median of 80 in 2011. There has been a downward trend since 2007 according to the data which could be a reflection of redundancies and restructuring which occurred as a result of the recession.

However, the labour market has shown that turnover rates have steadily increased since 2012, with the median voluntary resignation rate reaching 14.1%. This reflects a healthy labour market but it is still advised to monitor turnover to ensure it stays at the optimum level. It’s inevitable that staff will leave, but some change, especially near the top of your organisation, can allow you to introduce new staff with fresh thinking. Track historical turnover to help you plan for internal development and recruitment, this will also bring attention to any potential issues before they become a problem.

Absence rates have been decreasing since 2007 and appear to have stabilised with minimal change over the last few years. Latest XpertHR analysis of absence data finds a median sickness absence rate equivalent to 2.6% of working time.

Unplanned absences can be a huge cost to the business. If you can track absences accurately, and map them against different areas of the business, you’ll have the metrics you’ll need to identify whether you have a problem, and what the appropriate solutions could be. It’s also a good measure to know how many days of holiday entitlement employees have ‘in hand’ at any time. Mainly because of the impact it has on resourcing, but this also helps with financial reporting.

Claire Bond; Director at Bond Williams comments:

“Benchmarking has become an essential tool for HR professionals; if metrics are used wisely they should measure processes, practices and results against the competition to improve overall performance. Under-use of HR metrics can make it more difficult for organisations to demonstrate their value and also to execute sound strategic decisions. However, keep in mind benchmarking is more effective when used as part of an overall business strategy; when comparing data, the information should be used as a tool for decision-making rather than as an absolute standard.”

Private: Bond Williams


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