Possible Analyses using KPIs of the HR Field

Before getting into the possible analyses, here are a few HR-related dashboards for inspiration.
1. Employee Attrition Analysis
2. Employee Turnover Analysis
3. Diversity & Inclusion Analysis

1. Employee Turnover Rate

Definition:

Percentage of employees who leave the company within a specified period.

Possible Analysis:

1. Trend analysis: Analyze the trend of employee turnover ratio over time to identify patterns and changes.
2. Industry benchmarking: Compare the employee turnover ratio with the industry average to assess the company’s performance.
3. Departmental analysis: Analyze the employee turnover ratio by the department to identify the departments with the highest turnover and assess the reasons for it.
4. Cost analysis: Calculate the cost of employee turnover, including recruitment, training, and lost productivity, to determine the financial impact of high turnover rates.
5. Skill gap analysis: Analyze the skill sets of employees who are leaving to determine if there is a gap in the organization’s skill requirements.
6. Engagement analysis: Analyze employee engagement scores to identify if there is a correlation with high turnover rates.
7. Succession planning analysis: Analyze the turnover of key positions critical to the organization’s success to determine the potential impact on succession planning.
8. Diversity and Inclusion analysis: Analyze the turnover of employees from different demographics to determine if there are issues with diversity and inclusion.
9. Geographic analysis: Analyze the turnover by location to determine if there are any regional differences in employee turnover rates.
10. Performance management analysis: Analyze the turnover of employees who have received poor performance reviews to assess the effectiveness of the performance management system.

2. Employee Satisfaction Score

Definition:

It measures the level of employee satisfaction with respect to their job, compensation, and benefits.

Possible Analysis:

1. Identifying areas of improvement: Analyzing the factors that contribute to low employee satisfaction scores can help identify areas that need improvement, such as leadership, communication, or employee recognition programs.
2. Assessing the impact of employee satisfaction on business performance: There is a strong correlation between employee satisfaction and business performance. Analyzing this relationship can help determine the impact that employee satisfaction has on business outcomes.
3. Identifying factors that contribute to high satisfaction scores: This can help identify best practices and areas that are working well within the company.
4. Identifying the relationship between employee satisfaction and customer satisfaction: Analyzing the relationship between employee satisfaction scores and customer satisfaction scores can help determine the impact that employee satisfaction has on customer experience.
5. Assessing the effectiveness of employee engagement initiatives: Analyzing employee satisfaction scores before and after implementing employee engagement initiatives, such as wellness programs or leadership training, can help determine the effectiveness of these initiatives and identify areas for improvement.

3. Diversity & Inclusion Index (D&I Index)

Definition:

It analyzes the diversity of the workforce & company policies/ practices.

Possible Analysis:

1. Identifying best practices: This can help identify best practices within the organization that can be shared across different departments and locations.
2. Measuring progress over time: This can help determine whether an organization is making progress in promoting diversity and inclusion.
3. Identifying barriers to inclusion: This can help identify barriers to inclusion within the organization, such as lack of cultural competency training or unconscious bias.
4. Measuring the impact on business performance: Analyzing the correlation between the diversity and inclusion index and business performance metrics, such as revenue and profitability, can help determine the impact of diversity and inclusion on the organization.
5. Comparing against diversity goals: Comparing the diversity and inclusion index against diversity goals set by the organization can help determine whether the organization is on track to meet those goals.
6. Identifying disparities: Analyzing the diversity and inclusion index by race, gender, age, sexual orientation, and other demographics can help identify disparities in representation and inclusion within the organization.
7. Comparing against industry standards: Comparing the diversity and inclusion index against industry standards can help identify areas where the organization is falling behind its peers.

4. Employee Engagement Score

Definition:

It measures the level of employee engagement with the company’s culture, values, and mission

Possible Analysis:

1. Identifying drivers of engagement: Analyzing which factors are most strongly associated with high employee engagement, such as opportunities for growth and development or positive work culture, can help identify areas for improvement.
2. Comparing engagement scores across departments: Analyzing engagement scores across different departments can help identify which departments have the highest levels of engagement and which may need more support.
3. Assessing the relationship between engagement and productivity: This can help determine whether higher engagement scores are associated with increased productivity.
4. Examining the impact of management on engagement: Analyzing how employees rate their managers in terms of their effectiveness and leadership can help determine the impact of management on employee engagement.
5. Identifying trends in engagement over time: Analyzing trends in engagement scores over time can help determine whether engagement levels are increasing or decreasing and identify any factors that may be driving these trends.
6. Comparing engagement scores with industry benchmarks: This can help determine how an organization’s engagement levels compare to others in the same industry and identify areas for improvement.

5. Employee Attrition and Retention Index

Definition:

It measures how many employees leave the organization and how many continue to stay in the organization

Possible Analysis:

1. Identifying reasons for high attrition rates: If an organization has a high attrition rate, it may be a sign of underlying problems within the company. Analyzing the reasons can help identify areas that need improvement.
2. Calculating the cost of attrition: High attrition rates can be expensive for organizations. Analyzing the cost of attrition, such as recruitment, training, and onboarding costs can help organizations understand the financial impact of high attrition rates.
3. Analyzing the characteristics of employees who leave: Analyzing the characteristics of employees who leave an organization, such as age, job level, or performance ratings, can help identify what factors contribute to high attrition rates.
4. Assessing the impact of attrition on company culture: High attrition rates can impact company culture. Analyzing how attrition rates impact company cultures, such as morale or employee engagement, can help organizations understand the broader impact of high attrition rates.
5. Benchmarking retention rates against industry standards: Analyzing how an organization’s retention rates compare to industry standards can help identify areas for improvement and help set goals for retention rates.
6. Comparing retention rates across departments: Analyzing retention rates across different departments can help identify which departments are retaining employees the best. This can be used to determine what practices or programs are working and can be replicated in other departments.
7. Assessing the impact of retention on business performance: High retention rates can have a positive impact on business performance. Analyzing how retention rates impact metrics such as productivity, revenue, and customer satisfaction can help demonstrate the value of investing in employee retention programs.

6. Employee Productivity Index (EPI)

Definition:

It measures the productivity of its employees. It is typically calculated by dividing the total output of an organization by the number of employees

Possible Analysis:

1. Comparing productivity levels between departments: This can help identify which departments are the most productive and which ones need improvement.
2. Assessing the impact of employee recognition programs: Analyzing productivity index data before and after the implementation of employee recognition programs can help assess their impact on employee productivity.
3. Comparing productivity levels between different time periods: Analyzing productivity index data over time can help identify trends and changes in productivity levels, allowing organizations to make necessary adjustments to improve productivity.
4. Setting productivity targets and goals: Using productivity index data, organizations can set productivity targets and goals for different departments and employees to improve overall productivity.
5. Evaluating the impact of training and development programs: Analyzing productivity index data before and after the implementation of training and development programs can help evaluate their effectiveness.
6. Identifying top-performing employees: Using productivity index data, organizations can identify employees who consistently perform at a high level and reward them accordingly.
7. Identifying opportunities for process improvement: This can help identify areas where processes can be improved to increase efficiency and productivity.

7. Employee Performance Rating Distribution

Definition:

It is the spread of performance ratings that an organization assigns to its employees during a performance evaluation cycle

Possible Analysis:

1. Identifying performance gaps: Analyzing the performance rating distribution can help identify any performance gaps within the organization, where some employees may be performing significantly better or worse than others.
2. Identifying training needs: Analyzing the distribution of ratings can help identify areas where employees may need additional training or development opportunities to improve their performance.
3. Evaluating the consistency of rating distribution: Analyzing the distribution of ratings over time can help evaluate the consistency of the rating system, identifying any shifts or changes in how ratings are assigned.
4. Developing performance improvement plans: This can help identify areas where employees may need support or guidance to improve their performance, leading to the development of targeted performance improvement plans.
5. Assessing the impact of performance on business outcomes: This can help evaluate the impact of employee performance on business outcomes, such as productivity, customer satisfaction, and revenue growth.
6. Identifying top performers: This can help identify top performers within the organization, who may be eligible for promotion or other recognition.

8. Benefits Cost per Employee

Definition:

The total cost of the employee benefits provided by the organization like health insurance paid time off, etc

Possible Analysis:

1. Comparing benefits costs to industry standards: This can help determine whether a company’s benefits package is competitive and attractive to employees.
2. Identifying cost drivers: Analyzing the costs of specific benefits, such as healthcare or retirement plans, can help identify areas where costs are high and where cost-saving measures can be implemented.
3. Assessing the impact of benefits costs on employee retention: Analyzing the relationship between benefits costs per employee and employee turnover rates can help determine whether benefits are an effective tool for retaining employees.
4. Identifying opportunities for cost savings: This can help identify areas where cost savings can be achieved, such as through changes in benefits offerings or negotiating better rates with providers.
5. Evaluating the ROI of benefits programs: Analyzing the costs of benefits programs in relation to the benefits they provide can help determine the return on investment of these programs.
6. Comparing benefits costs across departments or employee groups: Analyzing benefits costs per employee across different departments or employee groups can help identify where benefits costs are highest and whether there are opportunities for cost savings.

9. Absenteeism Rate

Definition:

The percentage of scheduled workdays missed by employees due to unplanned absences.

Possible Analysis:

1. Identifying patterns and trends: Analyzing absenteeism rates over time can help identify patterns and trends in employee absences, such as spikes in absences during certain seasons or days of the week.
2. Comparing absenteeism rates across departments: Analyzing absenteeism rates across different departments can help identify which departments are experiencing the highest rates of absenteeism. This can be used to determine whether certain departments need more support or resources to reduce absenteeism.
3. Examining the reasons for absences: Analyzing the reasons for absences can help identify underlying issues that may be causing employees to miss work, such as poor working conditions or lack of work-life balance.
4. Assessing the impact of absenteeism on costs: High absenteeism rates can also have a financial impact on an organization, so analyzing absenteeism rates can help determine the cost of absenteeism.
5. Evaluating the effectiveness of absence policies: Analyzing absenteeism rates can help determine whether existing absence policies are effective in reducing absenteeism.
6. Identifying potential risks: High absenteeism rates can be a sign of potential risks to the organization, such as high-stress levels or poor working conditions.
7. Benchmarking against industry standards: Analyzing absenteeism rates can help determine how an organization’s rates compare to industry standards, which can be useful for identifying areas where the organization may need to improve.

Only a few KPIs are covered in this article. I hope this gives you an idea about the HR domain.

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