3 Key Performance Metrics for your Employee Resource Group

Jorge.
Jorge.
Jul 24, 2017 · 3 min read

ERGs struggle with measuring and tracking results. We have all heard the term key performance indicators, KPIs. A KPI is a measurable value that shows how effectively a company is achieving key business objectives. A good KPI should act as a compass, helping you and your team understand whether you’re taking the right path toward your strategic goals. To be effective, a KPI must:

  • Be well-defined and quantifiable.
  • Be thoroughly communicated throughout your ERG
  • Actually be crucial to achieve your goal. (Hence, key performance indicators)
  • Be applicable to your Employee Resource Group vision.

1. Recruiting Metrics

  • Return On Investment (ROI): We all kind of know what ROI means. It’s a way to measure your program effectiveness. The program being recruiting represented as a formula:
    ROI = (ERG Return — ERG Investment) / ERG investment, %
    ERG Investment it’s how much money you placed towards the recruiting including the cost of each recruiter, conference fees, travel cost, etc.
    ERG Return it’s a little trickier to measure. This could be many different things such as Time-to-fill, Cost-per-hire, Quality-of-hire, etc.
    Time-to-fill: the average length of time it takes a recruiting team to fill a position from the point that the job is open.
    Cost-per-hire: the average cost of sourcing a successful candidate, calculated across all positions and all cost elements of the recruiting process.
    Quality-of-hire: the average quality of new hires as measured by things like performance ratings or speed of promotion.
  • % Recruiting Events: Target % of events your ERG has had representation on over the total amount of recruiting events your company has attended. Each year you can set a higher target with a goal in mind. An example — if your ERG is a cultural diversity one you can drive Talent Acquisition to begin attending recruiting events where the population is diverse and begin to measure.

2. Development Metrics

  • Career Advancement: ERGs should identify members who have advanced their careers as a direct result of ERG program and initiative support and submit a minimum of three success stories per year to the D&I office.
  • Personal Development: Number of attendees attending developmental events provided by your ERG over the total number of ERG members.
  • Professional Development: Number of attendees attending professional growth events provided by your ERG over the total number of ERG members.

3. Retention Metrics

  • % of Member Engagement: ERG active members / ERG total members x 100, %
    What defines an ERG active member versus an ERG member?
    You can define this threshold, as an example — let’s say an active member it’s considered someone that attends 3+ events per year or it’s someone that has responsibilities for an event. An ERG member can be anyone who is registered in the mailing list.
    You set your target. See where you currently stand and set a goal for where you want to be.
  • Employee Turnover Rate (ETR): Before arriving upon your ETR, you need to have identified your ERG members, and active ERG members. Then take the number of ERG members who have departed the company and divide it by the average number of employees. If you have a high ETR in your ERG, spend some time examining your development and engagement opportunities.
  • Employee Satisfaction: Happy employees are going to work harder — it’s as simple as that. Measuring your employee satisfaction through surveys and other metrics is vital to your ERG and organizational health.

“Society for Human Resource Management” How to Measure and Improve the ROI of Your Recruiting Function. N.p., n.d. Web. 16 May 2016.

Original article was posted on my LinkedIn page.

Jorge.

Written by

Millennial. 32. Lean Six Sigma practitioner. Process engineer. Quality expert. Start-up aspirant. Tech history nerd.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade