HRSUCCESSTALK COMMUNITY

Topic: Recruitment KPIs
Speaker : Vandana Sinha, DGM - HR, DB Corp Ltd.

Hi everyone,

Each HR KPI dashboard acts as a mirror for us and plays a vital role in HR Analytics. To deliver outstanding results, organisations require people with requisite skills, qualifications, experience and right mental make up that is in sync with corporate culture.

Takeaways from the above video

Quality of Hire
-Often the hiring team is seen focused on number of position closure instead of focussing on right fitment and longevity of the candidate.
-Right hire also enable long association and internal growth of employees and helps you controlling infant attrition.
-This also enables you to objectively evaluate the need to hired on a specific position.
-Measuring the “Quality of Hire(QoH)”: (she has explain this with example in video)
QoH = ((PR+HR+HR)/N)%

-PR=Average performance rating of new hire(1 year)
-HP=% of hires performing as performing as per expectation level within a defined period
-HR=% of new hires retained after 1 year
-N=No. of indicators/parameters used

Vacancy Rate
The no. of vacant job specific positions divided by the total no. of job specific positions give the vacancy rate.

-Pendency in closure of vacancies lead to:
a) Impact on function’s and team’s performance.
b) Increased workload on existing team thereby increasing pressure.
c) Increased employee turnover creating new vacancies so it is a chain in itself.
d) At senior level no. is less but criticality is more.

External Vs. Internal Hire Rate
- Take less time and money to close a vacancy internally as compared to external hiring, the salary of external hire is on an average 18-20% more than that of internal candidate on the other side, the external hiring brings unique talent, freshness and synergy in the teams.

- Make a balance between the two, during manpower planning, make a mix of positions to be closed by internal and external hiring(fill the senior level vacancies internally and entry level externally) The advantages are many explained in video.

Time to fill or TAT(Turn around Time)
Time to fill/TAT is applicable on positions filled internally as well as externally.

a) For review summarize the total number of positions you have during a period(monthly basis)
b) Classify them as “Senior”, “Mid Level” and “Junior/Associate” and put the applicable TAT.
c) You can also decide TAT based on impact of the function and position in the organization, for eg. Sales, Technology should have shorter TAT than support functions.
d) Measure actual TAT through the tracker (Position open date to date of offer/Date of joining).
e) Calculate the difference to understand the TAT achievement.
f) This will help you in understanding the real time taken to fill the vacancies and work out on the action point in case of gap.

Retention Rate/Turnover Rate

Turnover Rate: Refers to the percentage of employees leaving the company within a certain period of time.

Retention Rate: is 100% the turnover rate for eg. Turnover rate is 25% annualized, your retention rate is 75%.
-The turnover rate calculation includes an in-depth analysis of performance loss, infant attrition, the real behind the exit (hiring, culture fitment or any other issue).

- The early attrition relates to hiring and induction quality for new joiners.

- High turnover occurs when an employee is terminated from a position.

Deeper Analysis of Turnover
Turnover analysis should include:
a) Reasons for exit. Identify the top reasons for exit.
b) Comparison from previous years. Compare 3 years attrition data.
c) Department wise and centre=-wise exit and their study.
d) Performer’s loss and the dipstick reasons.
e) Time taken to fill the vacancy due to attrition to understand the actual loss.
f) Tenure wise attrition. Identify which group is leaving more with reason.

Voluntary Turnover Rate
A voluntary turnover happens when an employees leave the organization by their own in this case the employee submits resignation to the employer.
The reasons could be:
a) Career growth/learning
b) Dissatisfaction with compensation
c) Dissatisfaction with manager
d) Work environment
e) Induction drop out
f) Starting own business or joining as partner
g) Relocation
h) Other personnel reasons
-Calculation: Divide the no. of employees leaving voluntarily/the average number of employees (average of HC at the beginning and end of the period)
-Out of the employee leaving their job voluntarily, 44% were GenXers & Millennials.
-They are aspirational want to grow fast. Like to work with freedom & want to work on their terms.
Retirement Rate
A separation type where employees decide to end the full time working due to age/physical condition/financial independence. The replacement should be done proactively as it is a planned event. The turnover rate is inclusive of retirement rate.
- Few organizations do not retire people completely if they are fit to work after attaining the superannuation age. They engage them as retainers where the persons serves the company with reduced work hours.
 
Employee Retirement Rate= (Total number of retired employees/Total number of people in system)*100

Thought of the day: “Unless commitment is made, there are only promises and hopes; but no plans.”― Peter F. Drucker  (Father of Modern Management)

Please Like, Share and Follow HR SUCCESS TALK for daily updates

Youtube
https://youtube.com/channel/UCxy1zD-RFZlxT0I1279cHjg

Happy Learning!
Regards
Vijay Tiwari
Team - HR SUCCESS TALK