Retaining and attracting top talent to your organization is more competitive and challenging than ever before, so it’s critical to build an environment known for great culture, high engagement and low turnover. Engaged employees are more productive and are more apt to recruit other new hires to your business.
In a recent Paycor webinar, HR expert Leigh Branham offered eight important metrics to track on your organization’s Talent Management Scoreboard.
# Regrettable turnover: This comprises the employees you really
don’t want to lose because of the value they bring to your organization.
Remember: It can cost $20,000 or more to replace a single employee—to
say nothing of the soft costs of losing a top performer.
# Avoidable turnover: This measures the loss of employees who leave for reasons other than a personal life change, such as a spouse moving to work in another city or the employee deciding to go back to school.
# New-hire retention: Calculate the number of new hires who quit within the first year of employment, then compare rates at least quarterly. It’s important to conduct a failure analysis to understand what mistakes were made during the hiring or onboarding processes.
# Rate of jobs filled internally: A healthy percentage of promotions or even lateral moves illustrates that employees are seeing opportunities within the organization and are more inclined to stay for the long haul.
# Employee referrals: About 30-40 percent of new hires should come from internal employee referrals, depending on your company’s need to bring in new people. Referrals indicate that employees think your organization is a good place to be.
# Unscheduled absenteeism: Surprise absences increase as employees disengage from their work, so a pattern should raise a red flag for managers.
# Employee engagement survey score: Conducting a company-wide employee survey is still a best practice (provided leadership acts upon the results).
# Quit rate: The number of employees who quit without having another job lined up should be less than 10 percent of your departures.
Compiling and analyzing these eight metrics will help your organization understand its HR strengths and weaknesses in support of creating a talented, engaged workforce. In fact, comparing these metrics across managers can yield actionable insights on opportunities for praise, or needs for coaching or even reassignment.
To learn more about why employees leave and how to keep them, view the complete webinar with Leigh Branham.
Paycor’s technology can improve your organization’s talent retention efforts, as well as employee training and HR policies. With solutions ranging from online resources such as HR Support Center to a robust HRIS, we have the tools you need. Contact us to learn more about what we can do for your business.
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