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Fred Auzenne explains how to use Human analytics to improve business performance

Fred Auzenne

Every business function is responsible for contributing to the business bottom line, including functions like Accounts and Human Resources Management or HR, which do not directly connect to the business output. The general perception about the Human Resources function is that it is a people-oriented function. While accepting the fact, Fred Auzenne, currently a business leader, who advises organizations about various techniques of growth and expansion, attaches a lot of importance to human resources as it impacts the overall company performance in terms of revenue.  He prefers using HR analytics strategically to transform HR operations by helping the team gather insights for contributing meaningfully and actively to the company’s bottom line. 

Metrics measured by HR analytics

First, it is vital to ascertain the business needs before identifying the HR metrics helpful in contributing value to the business. To draw the HR analytics strategy, the C-suite must collaborate with the HR leaders. Fred Auzenne says Only after the business leaders identify the Key Performance Indicators (KPIs) of the organization that the HR can list down the HR metrics that would impact these KPIs.

The C-suite is evident in its understanding of using HR analytics to improve business performance. It sees a clear connection between the two and the analytics’ impact on the bottom line. The C-suite outlines the specific HR areas of interest to them to improve the bottom line, and it becomes the starting point for listing the relevant HR analytics metrics.

Standard metrics tracked by suing HR analytics

Here are some metrics of HR analytics that the C-suite prefers to focus upon for improving business performance.

Revenue generated per employee

The business leaders would like to know the contribution of each employee in monetary terms, which is the quotient of the total revenue earned divided by the number of employees in the organization says, Fred Auzenne.  The figure points to the organizational efficiency in getting the most from their employees that impacts revenue generation.

Training expenses for each employee

The Company spends on training the workforce to increase operational efficiencies that improve productivity. The training expenses per employee are the figure you get when you divide the total training expenses by the number of employees. Going ahead, it is possible to determine the value of this expense by measuring the training efficiency.

Training efficiency

Determining the training efficiency depends on analyzing several data points like test scores, performance improvement, and upward movement of employees within the organization to acquire new roles after training. The training efficiency points to the effectiveness of the training programs.

Rate of Offer acceptance

By dividing the number of formal jobs offers given in a specific time divided by the number of acceptance of the offers, denote the offer acceptance rate.  A good ratio is about 85% and above. A lower rate means that the acquisition strategy of the company needs some improvements.

In addition, the time to hire, absenteeism, tile to fill, voluntary and involuntary turnover rate are some other HR analytics metrics used by organizations.

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