Key performance indicators for compensation measure an assistant’s efforts to help process payroll efficiently and accurately. Tracking this metric is vital because it indicates how long employees will remain with the organization. About 50% of all employees leave a company because of poor management. Takes significant action to develop skills needed for effectiveness in current or future job. Well-known organizations and enterprises from all over the world regularly discuss how important it is to hire and retain the right talent, and this ability is often regarded as one of the greatest predictors of organizational success. The development of KPI metrics help to create measurement systems, information systems throughout the organization. : Evaluates the importance and understanding of company-wide organizational culture. Develops and proposes a long-term (3-5 year) strategy for the organization based on an analysis of the industry and marketplace and the organization’s current and potential capabilities as compared. Regularly meets with employees to review their development progress. Understands the unspoken meaning in a situation. These valuable KPIs can help optimise candidate sourcing, streamline recruitment process, and help retain employees. Enlists experts or third parties to influence others. KPI Compensation. A scorecard is a cluster of data that helps your leadership team critically analyze the effectiveness of your HR strategies in relation to developing a competitive advantage, improving skills, managing your culture, reducing costs, etc. Future Vision – Employee considers how various scenarios will impact the future of the business. Competencies dealing with business in conceptual thinking. HR generalists are in charge daily HR activities like keeping HR data system records and organizing reports from the database, establish department goals, targets and systems, setting up interviews and execute other functions assigned and required by the company management. Strengths – Please rate the employee’s overall job strength and provide the areas in which the employee excels. Supports employees in their efforts to achieve job goals (e.g., by providing resources, removing obstacles, acting as a buffer). Tries to build relationships with people whose assistance, cooperation, and support may be needed. Having an informed and invested leadership team has been proven to increase HR budgets and department support. Average Requisition Days on Hold: Staff – Average number of days job postings for staff level positions were postponed during the hiring procedure. Expresses gratitude and appreciation to others who have provided information, assistance, or support. HR Administration Expense as a Percentage of Total HR Expense – Percentage of total HR management-related costs compared to the overall HR Department expenditure. Applies a theoretical framework to understand a specific situation. Average Requisition Days on Hold: Managers – Average number of days job postings for managerial level positions were postponed during the hiring procedure. These sample KPIs reflect common metrics for both departments and industries. Capacity to exhibit attentiveness, proficiency, and achievement in getting teams to cooperate. Total Expense: Compensation per Compensation Employee – Total dollar expenses in offering compensation services during the preceding year divided by the total number of compensations employees at the culmination of that year. Carefully reviews and checks the accuracy of information in work reports (e.g., production, sales, financial performance) provided by management, management information systems, or other individuals. : Helps track the efficiency of the hiring process. : Helps the company understand how comfortable new hires feel after their training vs. before. Candidate Notification Cycle Time – Percentage of staff members who abandon the company after the initial year divided by the total number of staff members within that year. Can be determined by dividing the average company salary by the average salary offered from competitors or by the rest of your industry. Time to Start – The average amount of time from the announcement of job opening to the day a new hire starts the job. A healthy work-life balance promotes employee engagement. Talks to customers (internal or external) to find out what they want and how satisfied they are with what they are getting. By Department. Competencies of managing performance for managers. The benefits and compensation office handles staff compensation, including salaries and bonuses, and fringe benefits like insurance, 401Ks, and other monetary and non-monetary benefits. Number of Continuing Education Participants per Year – Yearly average number of workers who engage in firm-sponsored continuing education projects. They enjoy their work and are committed to working together to achieve the company’s goals. The employee engagement objectives (KPIs) are designed to track and measure how happy and engaged your employees are. Capacity to obtain others’ assistance for theories, recommendations, plans, and methods. Turnover Rate – The percentage of posts within the firm that were vacated over one single year. KPIs not only provide an organization with a focus for strategic and operational improvement, but a way to compare achievements to similar organizations. Has an in-depth understanding of competitive products and services within the marketplace. Presents a cheerful, positive manner with customers. Questions others to assess their confidence in solving a problem or tackling a situation. Improve turnover/retention – The turnover/retention KPI measures employee engagement by looking at employee turnover versus employee retention. Job brief. The health care cost per employee – The health care cost per employee measures the total cost of health care incurred by the company for all of its employees, including the health insurance premiums, for each employee working for the company irrespective of whether they are covered under its health plan. : This is a key metric underlying talent retention. They could involve on-campus visits, interviews, and events, administrative duties, and handling marketing efforts. : This is the percentage of candidates remaining after each round of elimination in the hiring process. Selects language and examples tailored to the level and experience of the audience. Percentage of Workforce below Performance Standards – The number of workers who fail to satisfy the established performance standards for their position or function. But what is important is that you share both positive and negative results. Approaches a complex task or problem by breaking it down into its component parts and considering each part in detail. HR Headcount Ratio – The number of enterprise-wide, FTEs divided by the overall number of HR office FTEs. Takes independent action to change the direction of events. Note: We’re not suggesting nor advocating for you to begin measuring all of these KPIs. Related: HR Generalist, HR Coordinator, HR Admin, HR Manager. Work Ethic – Please rate employee’s work ethic and ability to achieve stated goals and objectives. KPI for KPA 2 = finalize selection in 5 weeks for each individual position. Develops better, faster, or less expensive ways to do things. We are looking for a Compensation and Benefits Specialist to oversee and administer the employees perfect rewards and smart benefits. : Gives perspective on the amount of labor and productivity lost due to sickness and otherwise unpredicted leave. A successful company is one that has established an open and accepting work environment. Establishes structures and processes to plan and manage the orderly implementation of change. Notices and accurately interprets what others are feeling, based on their choice of words, tone of voice, expressions, and other nonverbal behavior. Capacity to be accountable for own’s conduct. Average Turnover Percentage – Average number of staff members who abandon the firm annually divided by the total number of staff members at the beginning of the same year, as percent. Competencies dealing with business in initiative. Making sure that one’s own and other’s performance and reports are thorough and valid; rigorously prepare for meetings and presentations; see to it that agreements and obligations have been completed. 9am – 5:00pm EST Capacity to search and grab business opportunities; eagerness to take well-considered risks to accomplish business objectives. Larger organizations typically have a smaller ratio, but more HR staff overall, than small businesses. Gives honest and constructive feedback to other team members. Identifies and promptly tackles morale problems. The value of the Human Resources (HR) division within an organization resides in its capacity to fulfill its role as the primary enabler for human capitaldevelopment and sustainability. Finds creative ways to make people’s work rewarding. +1 (970) 579-0900 Share your HR metrics and progress with the entire organization to demonstrate the department’s contribution to the strategic goals. : The performance of new hires can be compared to that of other employees. HR KPI … Understands both the strengths and weaknesses of others. Conveys a command of the relevant facts and information. Makes a systematic comparison of two or more alternatives. Competencies dealing with business in results orientation. Recognizes and rewards people for their achievements. Competencies dealing with people in influencing others. Competencies dealing with business in technical expertise. Improve supervisor satisfaction – The supervisor satisfaction KPI measures how engaged and satisfied employees are with their supervisors or managers. Determined by dividing the number of employees who left the company in a given period by the average number of employees in that time period. HR Compensation Expense as a Percentage of Total HR Expense – Total percentage of expenditure associated with HR compensation administration compared to the total HR Division expenditure. HR Generalist Staff Percentage – The total percentage of HR workers compared to the number of HR generalists. Ensures that important information from his/her management is shared with his/her employees and others as appropriate. Talent retention. This is the number of business days in the payroll process from start to finish. Routinely walks around to see how people are doing and to hear about any problems they are encountering. Uses an appropriate business writing style. The NPS is based on this direct question, and it is scored on a scale from 0-10. Personal and team development plans and training. Rather, you can. Using one of the HR metric examples from above, minimizing employee turnover frequently appears on scorecards. Capacity to create, uphold, and reinforce partnerships with others outside or within the company who can contribute in terms of knowledge, aid, and assistance. Cost per Hire – The average cost acquired by the HR office to fill one available role within the firm. Payslip Recalculation KPI •2000 employee •35 recalculated upon request of employee •Target 0.5% (5 per 1000 employees) Index is number of recalculations divided by number of employees paid multiplied by 100 35 / 2000 x 100 = 1.75% As such, it's important to revise your KPIs as business objectives evolve over time. Finds non-threatening ways to approach others about sensitive issues. Improve the productivity rate of employees – The productivity rate of employees KPI is designed to evaluate the productivity of an organization over time. Provides opportunities for people to learn to work together as a team. Exerts unusual effort over time to achieve a goal. HR Compensation Administration Expense per Firm-Wide Employee – Total expenditure related to employee compensation administration divided by the total number of firm-wide FTEs. Sign up & Evaluate Human Resource Professionals. : Turnover of top performers in particular is negative and comes at a higher cost. Capacity to express trust in employees’ capability to succeed, especially at difficult assignments; entrusting important rights and duties; letting employees decide freely how they will meet their goals and deal with problems. Likeability – I enjoy meeting with this employee outside of work. Percentage of Premium Covered (Employee and Dependents) – The percentage of health insurance benefits that are paid for by the firm for plans that protect the employee and his/her dependents. Business Pool to Individual Compensation Cycle Time – Average number of days from the point the business group remuneration pool is determined until individual compensation selections are made. Seeks out knowledgeable people to obtain information or clarify a problem. Competencies dealing with business in analytical thinking. If employees aren’t engaged, production will be down, impacting negatively on the company’s profit levels. Process Changes Cycle Time (Material/Non-Material) – Number of weeks needed to handle modifications that have a financial (401K contribution adjustment) or non-financial consequence on the employees (phone number change). Quality of Hires – Percentage of hires who are top performers after a single year of service compared to the total number of hires for specific segments. Asks about the other person’s personal experiences, interests, and family. Self-management competencies personal credibility, Self-management competencies stress management. Key performance indicators (KPIs) are a set of performance measurements that demonstrate how effectively an organization is achieving key objectives. ER Issue Resolution Cycle Time – Average number of hours needed to settle the following types of ER concerns: general issues (flexible work structure); serious issues (sexual assault) potential lawsuit, labor conflicts. Engaged employees participate actively in their job roles. Encourages and supports entrepreneurial behavior in others. : Evaluates employee engagement in improving business processes, and reflects on the openness of a company to employee input. Managers seem to recognize that it is now (more than ever) vital to have the right team executing company strategy. : Reflects on how welcoming the company is to new hires. They could involve broad banding, point fact or other means. HR Recruiting & Hiring Expense as a Percentage of Total HR Expense – Total HR Recruiting & Hiring related expense divided by total HR Team expense, as a percentage. First Year of Service Turnover – Percentage of total expenditure related to HR Recruiting & Hiring compared to the total HR office expenditure. When an HR department successfully lowers the turnover rate, it saves the company from the considerable expense of recruiting, interviewing, and training new employees. Facilitates groups or teams through the problem-solving and creative-thinking processes leading to the development and implementation of new approaches, systems, structures, and methods. Stays informed about employees’ progress and performance through both formal methods (e.g., status reports) and informal methods (e.g., management by walking around). It provides the means to monitor workforce indicators, analyze workforce statistics, diagnose issues, and calculate financial impacts. Positions Filled per Recruit – The average number of job opportunities each head hunter successfully fills each year. The policy is the tactical … But how do you measure the success of the team? This KPI gauges staffing levels within the HR office. When building KPI … Anticipates possible problems and develops contingency plans in advance. Formula: (Total number of lost workdays due to absence) / (Number of available workdays in an organization) = (Absenteeism rate). Payroll Headcount Ratio – The number of firm-wide FTEs divided by the overall number of payroll FTEs. Categories: Compensation and Benefits, KRAs & KPIs, Performance management Tags: KPI… Works cooperatively with others to produce innovative solutions. Total Expense: Training and Development Expense – Total amount of training and development expenditure for the past year, involving all charge backs to the company. Example KPI for KPA 1 = reduce the recruitment cost per head by 10%. Is sought out as an expert to provide advice or solutions in his/her technical area. And it is calculated by dividing total revenue by the total number of employees for the pre-defined period. External Recruitment Rate – The rate in which posts are filled by personnel not currently employed by the company. Works for solutions that all team members can support. Human resources Key Performance Indicators are designed to measure and evaluate all levels of employees who work within the Human Capital or Resource sector. Percentage of Premium Covered (Employee Only) – The percentage of health insurance benefits that are paid for by the firm for plans that protect the employee but do not cover his/her dependents. Develops clear goals for meetings and projects. Weighs the costs, benefits, risks, and chances for success, in making a decision. Recognizes the business concerns and perspectives of others. Develops and uses systems to organize and keep track of information or work progress. Identifying what needs to be done and takes action before being asked or the situation requires it. support@assessteam.com Uses appropriate grammar and choice of words in oral speech. Deals firmly and promptly with performance problems; lets people know what is expected of them and when. It’s almost inevitable that your measures will change at some point and it will benefit you to get out ahead of this. Competencies dealing with business in forward thinking. Being aware of these trends aid in forecasting retirement and planning for workforce replacement. Number of Grades (Bands) – Ranks or groups into which positions of the same valuation are classified for compensation objectives (in a point factor systems the ranks are usually determined as grades; in a broadbanding system the ranks are usually determined as bands – grades within bands specify career or occupational grades). Employees must use their vacation days. Uses multiple channels or means to communicate important messages (e.g., memos, newsletters, meetings, electronic mail). Competencies dealing with people in developing others. : The cost of the workforce as compared to all costs can be measured by summing all salaries and dividing by the total company costs within a given period. We dive into the core responsibilities of the compensation and benefits manager, take a look at his/her salary, and finish up with an example job description. Sample Compensation and Benefits Resume Objectives. Seeing if the individuals retained knowledge well enough to apply it is critical. Can be calculated by looking at the number of employees who retired as a percentage of the headcount. HR Planning & Analysis Expense per Employee – Total dollar expense in offering HR planning and auditing during the preceding year divided  by the total number of workers at the culmination of that ear. Contact Center to Benefits Headcount Ratio – Number of contact center personnel responding to benefits queries divided by the total number of benefits personnel firm-wide. HR Expense as a Percentage of Total Expense – The percentage of total HR Department expenditure compared to the total enterprise-wide expenditure over the same term. Number of Requisitions Filled: Directors – The overall number of directorial level job postings occupied within a specified term. A guided rollout is included with all our plans. When building KPI … A low percentage might indicate the need to update an unclear or unattractive job posting, and a high percentage indicates a larger number of qualified candidates with whom to continue the hiring process. Total Expense: Compensation per Firm-Wide Employee – Total dollar expenditures in offering compensation services during the preceding year divided by the total number of workers at the culmination of that year. Functional knowledge is significant so the corporation can depend on its HR managers to help direct … Setting up key performance indicators for your human resource department will help you to … : Provides perspective on how well the process works from the employee’s perspective. Provides helpful, behaviorally specific feedback to others. KEY PERFORMANCE INDICATORS (KPI) Select a KPI for each KPA, which would enable the individual to improve performance to achieve the objectives. Responsibilities includes employee’s right to have a fair practices to work safety and with benefits structure. A high number of days could indicate the need to review your payroll process. Competencies dealing with business in strategic thinking. And employees must be given the correct tools and training before they can engage with their job roles. Develops other indirect strategies to influence others. Poor productivity from non-engaged staff is thought to contribute to a $7 trillion loss in the global economy . This metric helps indicates the success of retention efforts and aids planning for talent replacement. : The number of business days it takes to resolve payroll error reported by employees. : Keeps tabs on the growth of the company workforce over time. Quickly identifies the central or underlying issues in a complex situation. The Top 25 Compensation and Benefits KPIs of 2011-2012 report is a comprehensive analysis on the most popular HR KPIs … HR KPIs should be specific, measurable, and actionable. Sets specific, measurable goals that are realistic but challenging, with dates for accomplishment. Anticipates the consequences of situations and plans accordingly. Headquarters: 810 5th Avenue, Suite 200 San Rafael, CA 94901 Phone: (415) 461-2586 Belgium Office: Barbizonlaan 20, 3090 Overijse Takes time to get to know coworkers, to build rapport and establish a common bond. Findings and Recommendations . While many organizations recognize this shift in thought, not all of them are correctly measuring success with updated HR key performance indicators (KPIs). Expresses ideas concisely in oral speech. Take time to identify which HR metrics will bring the most value to your organization and department. It measures how resilient employees are. Competencies dealing with people in persuasive communication. Can be determined by averaging the total marketing, hiring process, and referral (if necessary) costs per hire. Litigation Claims by Type – The number of lawsuits against the firm categorized by claim type: unlawful termination, unjust compensation, sexual assault, discrimination. : Measures how likely an employee is to recommend their organization as a place to work. Creates a graphic diagram showing a systems view of a situation. Sponsors the development of new products, services, methods, or procedures. Seizes opportunities to influence the future direction of an organizational unit or the overall business. This means that HR KPIs measure how successful HR is in realizing the organization’s HR strategy. : Helps the company see not specifically the price of the training, but whether it was effective. Benefits administration within any company takes care that employees of that company are provided compensation for their efforts in projects and benefits … Be the first to comment - What do you think? Clarifies expectations about what will be done and how. Evaluate scorecard metrics periodically to ensure they are still valid. Adding real-time tracking adds value to the KPI measurement and prevents any long-term negative trends from interfering with organizational success. Tailors the content of speech to the level and experience of the audience. In our opinion, managers need to be thinking about both traditional HR measures—like sick days, absenteeism, and employee satisfaction—alongside strategic human capital measures—like employee performance and culture. Capacity to execute crucial decisions promptly. Since HR departments typically aren’t included in the strategic planning process, creating an HR scorecard is a way to expose the department’s contributions in concrete, clearly understood metrics at the executive level.