There are different ways to measure the value and contribution your employees deliver to a company based on their engagement and levels of performance but not all measure this directly or provide the concrete feedback in specific areas that can help the organization improve and grow. This includes employee engagement surveys, performance pulse surveys, etc. But here are a few key metrics that can help you directly measure the value and contributions your workforce generates. These metrics can be tracked continuously to evaluate whether they are increasing or decreasing to determine if you are maximizing the performance of your employees.
- # of Ideas/Employee per year: Every company needs to innovate and bring new efficiencies yet where do the ideas come from to make it happen? Employee are often in the best position to recommend improvements but must be encouraged and committed to offering their suggestions for evaluation. How many suggestions per employee are you receiving per year?
- Employee Turnover Costs for the entire company per year. Per department. Turnover costs can be a significant drain on profits. This should be measured for both the entire company as well as the department to understand employee loyalty. This can also reflect on workplace culture which also impacts performance.
- Absenteeism Costs per year. Per department. Absenteeism challenges can also be very costly and have many indirect costs in productivity losses and quality concerns.
- Manager Turnover: Leadership changes can impact communication effectiveness and create uncertainty. It also takes time for a new leader to build trust and a strong working relationship. Just like with employees, organizations should seek to build strong lengthy tenures with their leadership team with well defined strategies on succession plans.
- NPS- Net Promoter Score: Is an indication of how likely employees are to promote the company as a quality and attractive place to work. But this goes deeper and can reflect concerns about the workplace culture and environment and the ability to attract and recruit new employees to the company.
- Human Capital Value Add (HCVA). This is a formula that can help measure the value that employees bring to the organization and should be calculated regularly to determine if this value is increasing or decreasing. To be able to measure actual value that employees deliver is important to ensure the workforce is performing at high levels.
- Revenue per employee: Tracking revenue per employees can provide an indication on output performance levels (in terms of revenue dollars) per person and the value your workforce delivers based on numbers of full time employees.
- Productivity per person: Productivity per employees can also be calculated by the total company product volume or service time delivered divided by the number of employees.
- Average Tenure: To understand the risk for employee turnover it would help to know and measure the average length of employee tenure. Is this increasing or decreasing? Where can improvements be made?
- Time to Fill Job Vacancy: This is also an indication on your company’s ability to attract and recruit the skills, experience and knowledge you need in your workforce. The reality is that an attractive and team-oriented workplace culture can help in recruiting the talent and skills you need.
- Hiring costs per employee: What is the cost to hire and recruit the talent you need? This should ideally be minimized.
- Onboarding success vs turnover: How successful is your company in onboarding new employees? What is the tenure length of your new hires? Every company spends a lot of time, effort and money in hiring new employees as well as programs to train them to help them maximize performance. Yet research indicates that many employees decide to stay or leave within the first 18 months of their tenure. Is this a financial cost drain to your company?
Interested in learning more about measuring engagement and performance? Give us a call today at 519-656-1066 for a free consultation or send us a quick note.
Engaged2Perform is backed by more than 30 years of experience developing process-driven strategic management tools, leadership training, and educational resources, we empower companies to achieve new levels of productivity, growth, and profit.