The human resource department is becoming more data-driven with thbusiness analytical toolse availability of new HR software and business analytical tools.
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The main purpose of using HR metrics is to help understand how human capital can be channeled to drive the organization toward its goals. It includes operational efficiency, employee retention, and best hiring practices.
However, creating many HR metrics will only act as a distraction rather than contributing towards achieving goals.
HR dashboards provide an overview of key HR metrics and KPIs for managers and executives. They offer self-service analytics and interactive data visualizations to monitor HR processes. Exemplary HR dashboards should have customized metrics based on company goals, real-time data updates, drill-down capabilities to analyze trends, visually appealing and intuitive design, and role-based access to relevant data and metrics for different users. With the right HR metrics dashboard, you can make faster and smarter workforce decisions backed by data and insights.
HR must conceptualize and use HR metrics that are practical and based on the objectives they want to achieve. This is where the HR dashboard can help. But what is the importance of the HR dashboard? Let’s dive into how HR dashboard software can help HR teams.
What Is an HR Dashboard?
An HR dashboard is a visual representation of all the key metrics you need to monitor and analyze for decision-making. It gives an accurate picture of the progress of organizational effectiveness concerning certain predefined objectives.
These metrics are equally crucial for HR managers and decision-makers in the company. It helps them identify if the company strategy aligns well with organizational and individual goals. An HR analytics dashboard should offer a clean and intuitive display of all key performance indicators (KPIs).
What Are The Features Of An HR Dashboard?
Modern HR dashboards go beyond tracking key performance indicators (KPIs) and envisioning data. Here are some key features to evaluate when choosing an HR dashboard software:
1. Complete Interactivity
Look for an HR dashboard that allows for powerful HR data analytics directly within the dashboard itself, enabling you to explore and analyze data to gain insights into HR trends and patterns.
2. Integration with All Data Sources
3. AI-powered Augmented Analytics
The latest HR dashboards are highly contextualized with AI and alerting, making them more collaborative and insightful. They provide a hub for cataloging insights and distributed data.
4. Automated Alerts and Reports
You can set up your HR dashboard to be automatically shared with key stakeholders regularly and receive alerts based on KPIs. This can help ensure your team stays on top of critical HR metrics.
5. Mobile-Optimized Design
Look for an HR dashboard optimized for touchscreen functionality and can be accessed from any device. This will allow you to stay on top of HR metrics and trends even when you are on the go.
6. Streamlined Data Preparation
A modern people analytics platform should offer an interactive HR dashboard that requires minimal data preparation. This will allow you to identify ways to better manage staffing, development, compensation, safety and health, and employee and labor relations.
What Are The Benefits Of Using a Human Resources Dashboard?
Human resource dashboards are a growing trend in the HR industry. These dashboards offer numerous advantages that can enhance your business. Below are some of the key benefits of using HR dashboards:
1. Centralize Data from Multiple Sources
Have you experienced the frustration of compiling multiple files and PDFs into a coherent format that effectively demonstrates your competence to executives? It’s a tedious and unpleasant task.
Fortunately, a human resources department dashboard can simplify this process by consolidating data from various sources into a single, accessible location. This simplifies the procedure and enables HR professionals to fulfill their responsibilities more efficiently.
2. Simplify Payroll and Benefits
A human resources department dashboard can significantly simplify the lives of HR professionals by enabling them to monitor their payroll distribution and compare it to industry benchmarks.
The HR metrics dashboard can integrate with various information management systems, facilitating speedy updates to new hire paperwork, including recent salary changes, onboarding dates, benefits packages, and other relevant information.
3. Track time, Attendance and Employee Activity
Human resources departments should prioritize enhancing employee productivity instead of dealing with efficiency issues. Integrating with an organization’s payroll system allows a human resources department dashboard to assist with timekeeping.
Furthermore, it can enable real-time attendance tracking, providing information on when employees arrive at work, take lunch breaks, attend scheduled meetings, and more.
4. Minimize Systematic Errors
Implementing a dashboard can minimize the likelihood of systematic errors. By simplifying processes through an HR dashboard, potential errors can be identified before they occur, decreasing operational error rates.
Since the HR team is expected to be the most organized department in the company, there should be no room for errors now that utilizing a dashboard is an option!
5. Improve Budgeting and HR Reporting
An HR dashboard offers valuable insights that aid in budgeting decisions, such as information on the expenses associated with new hires or overtime management. Previously, the finance team had to sift through multiple accounts and documents before making critical financial decisions. However, with the advent of dashboards, budget reports and coordination across various departments have become instantaneous!
Important HR Metrics That Should Be Included In Your HR Dashboard
The goal is to monitor metrics that can help you align with the company’s future course of action. Let’s have a look at some of the most vital HR metrics every dashboard should have:
1. Turnover Rate
Turnover refers to replacing an employee with a new one. High turnover can harm the company as it directly impacts productivity and disrupts the work environment. Filling open positions can consume time and effort for both employers and hiring managers.
Moreover, the cost of turnover is exceptionally high. Losing a worker can cost 1.5-2 times the employee’s salary. The turnover rate is the percentage of company staff members that leave within a certain period.
If the turnover rate is high, you need to understand the elements of your company that are likely contributing to it. It could be anything from a lack of growth opportunities to one-way communications or your compensation structure/benefits package.
2. Employee Net Promoter Score (eNPS)
Employee net promoter score is simply a measure of employee engagement. In other words, how likely are your employees to recommend your company as a workplace?
This method has been adopted from the NPS measure associated with customer satisfaction surveys. Employees are asked, “How likely they are to ‘promote’ you on a scale from 0 to 10.”
Depending on the score, they are divided into three categories – Promoters (9-10), Neutrals (7-8), & Detractors (0-6). Promoters are the most engaged workers. They are more likely to recommend your company to other people. At the same time, detractors are against advocating for your company or employer.
To calculate eNPS,
eNPS = % Promoters – % Detractors
It would be best if you could achieve positive eNPS. Negative eNPS implies that HR needs to develop initiatives to increase employees’ motivation and keep them more engaged.
3. Offer Acceptance Rate (OAR)
The offer acceptance rate (OAR) helps you understand your recruiting process’s effectiveness. It refers to the percentage of extended offers that are accepted.
OAR = Number of jobs accepted/ Number of jobs given
A strong OAR indicates that the HR teams have created an effective interview process and filled a pipeline. OAR gives you insights into how attractive the position is for outsiders.
But a low OAR needs to be addressed. There could be many reasons why candidates are not accepting the offer letters. It could be because they didn’t find the company culture a right fit for them, the role didn’t seem challenging for their skills, or the interview process was too cumbersome. This particular HR dashboard metric ensures that you can secure the right talent for your organization.
4. Total Overtime Cost
Overtime is when an employee works more than the specified hours per week/month. For starters, calculating overtime costs can be quite tricky and complex for accountants. And secondly, overtime costs can be quite an expensive cost. Added costs in taxes and other compensations compound overtime pay.
If your HR dashboard shows high total overtime costs, you likely need to hire more people to allocate work efficiently. It also indicates that you should improve how the tasks are assigned to employees.
Around 70% of an organization’s budget is allocated to personnel costs, underscoring the importance of having an accurate headcount.
Headcount refers to the total number of individuals a company employs at any given time, including permanent, temporary, contingent, and gig workers. An accurate headcount is crucial as it enables organizations to determine whether they have sufficient personnel to achieve their objectives. It also facilitates projections regarding potential changes to the headcount, resulting in improved financial management and more precise cost estimates.
6. Absenteeism Rate
Absenteeism refers to unscheduled absences from work that may stem from various causes, including health and well-being challenges. It does not necessarily reflect an employee’s commitment or job satisfaction level. Nonetheless, collecting attendance data is critical for HR professionals to assess the costs and frequency of missed work and gain insight into employees’ requirements.
According to a report, 76% of employees consider diversity an important factor when evaluating a job opportunity. In a business context, diversity refers to differences within a company, such as race, gender, ethnicity, and age.
Diversity, equity, inclusion, and belonging (DEIB) are increasingly becoming priorities for many corporations. Companies can track common DEIB metrics such as ethnicity, gender, location, and industry. Having a more diverse workforce can help an organization attract top talent.
Top 10 HR Dashboard Examples
It is important to be aware about the various examples of HR dashboards. Now that you know some of the essential HR dashboard metrics, it’s time to look at a few leading HR dashboard examples:
1. Executive HR Dashboard
The Executive HR Metrics Dashboard is useful for tracking your company’s progress toward its objectives. It delivers valuable insights to assist you in adjusting your strategies and plans as needed. This dashboard is useful for tracking HR KPIs, such as sales targets and customer service metrics. However, it’s important to note that executive HR dashboards prioritize financial metrics over operational ones.
2. Employee Performance Dashboard
The HR dashboard tracks employee behavior and performance. Managers can view absenteeism trends over the last five years, including the average yearly rate. This is crucial in measuring employee engagement and motivation, as low-motivated workers tend to call in sick more often. High absenteeism can significantly impact business productivity and finances, making it important to investigate the reasons behind it.
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3. Employee Engagement Dashboard
The employee engagement dashboard is a top HR dashboard for assessing the overall well-being of your workforce. It reveals which areas of your company are thriving and which require attention, like job satisfaction, turnover rates, and complaints from management. While financials are its primary focus, it offers valuable insight into employee morale and satisfaction. The dashboard also allows for an analysis of the impact of company policies on the work environment.
4. Retention Dashboard
Another useful example of an HR dashboard is the employee retention dashboard, designed to help organizations retain employees. By providing real-time insights, a retention dashboard can help businesses make informed decisions to improve employee retention.
One of the key ways to measure employee retention is by tracking how long new hires stay with the company. By comparing this data with previous years, businesses can determine whether their retention efforts are effective or if changes need to be made to their hiring practices.
5. Turnover Dashboard
Do you know how long your workers remain with your organization and the reasons behind it? A Turnover Dashboard can help you by gathering HR analytics, including paycheck, benefits, employment period, and employee satisfaction, among other metrics. It can provide a clear and evidence-based view of what you’re doing right or wrong in retaining your top employees and preventing them from leaving for your competitors.
6. Performance Management Dashboard
The performance management dashboard is a valuable tool for supervisors to evaluate their team members’ performance. When integrated with an ATS, it becomes even more beneficial. With the performance management dashboard, you can gain valuable business intelligence and make informed decisions to adjust your strategies and plans accordingly.
7. Workforce Demographics Dashboard
HR executives aim to create a diverse and inclusive workplace, and to achieve this, they must have a comprehensive understanding of the demographic makeup of their employees. The HR dashboard template helps them thoroughly analyze employee data based on various factors such as age, gender, location, department, and ethnicity.
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8. Workforce Diversity Dashboard
It’s widely recognized that businesses that prioritize diversity in their hiring and retention decisions are often the most successful, productive, and profitable. A diverse range of perspectives can lead to a richer and more engaging customer experience while retaining a diverse staff at all levels ensures that diversity of thought and perspective is maintained. The Diversity Dashboard analyzes recruitment, hiring, and retention trends concerning age, gender, and ethnicity.
9. Sales & Marketing Dashboard
The sales and marketing dashboard also called the CRM dashboard, tracks sales and marketing efforts. It offers insights for managing business and enables strategy adjustments to improve revenue if sales are down.
10. Talent Management Dashboard
In today’s competitive markets, attracting and maintaining top talent is critical for enterprises. A modern talent management dashboard helps monitor hiring stats, turnover rates, and employee satisfaction. This is key to enhancing the talent lifecycle and staying ahead in this competitive market.
Businesses need to maintain a balance between measuring nothing and measuring everything. All HR managers can follow these steps in the process of adopting an HR metrics dashboard:
- Identify why you need the information.
- Identify who needs that information.
- Determine the metric to define the data.
Monitoring data alone won’t help you bring any change to the organization. Taking action is of utmost importance.
For instance, monitoring the quarterly or annual absenteeism rate will bring no value. Businesses will need to find the underlying cause of it and try to rectify the situation.
Try to find insights into the situations to see some real effects of tracking HR metrics.
Frequently Asked Questions
An HR dashboard can help HR professionals make more informed decisions, identify potential issues, and streamline their reporting processes. An HR dashboard can be a valuable tool for any HR team by providing real-time insights and visualizations of key HR metrics.
A human resources department dashboard is a powerful business intelligence tool that can simplify HR management by consolidating all the necessary information into one central location. By doing so, HR professionals can more easily perform their duties and increase revenue for your business. Here are 8 key benefits of implementing a human resources department dashboard:
- Centralize Data from Multiple Sources
- Simplify Payroll and Benefits
- Streamline New Hire Paperwork
- High Adoption Rates
- Track Time, Attendance, and Employee Activity
- Minimize Systematic Errors
- Improve Budgeting and HR Reporting
- Reduce Paperwork Burden
Small businesses benefit greatly from implementing the best HR dashboards into their business strategies. The HR department can reap the rewards in various areas by doing so. An HR dashboard template can help measure the success of employee development, identify workplace and employee trends, improve recruiting strategies and results, boost employee satisfaction, and measure employee turnover and retention.
Implementing an HR dashboard may seem overwhelming, but starting with small steps can ultimately lead to business growth and numerous benefits for SMBs.
Hiba is an accomplished specialist in writing for Software as a Service (SaaS) and has extensive experience crafting compelling and informative content. With over two years of experience, she has honed her skills in producing various forms of content, including articles, blog posts, and more, all centered around SaaS. Hiba is dedicated to sharing her insights to assist businesses in leveraging SaaS to achieve growth and success.