{"id":8711,"date":"2021-06-15T00:48:20","date_gmt":"2021-06-15T04:48:20","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=8711"},"modified":"2026-02-12T04:42:20","modified_gmt":"2026-02-12T09:42:20","slug":"people-analytics-hr","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/people-analytics-hr\/","title":{"rendered":"People analytics: 11 metrics that matter for HR teams"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/people-leadership\/\" class=\"entry-header__link\">People &amp; Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tPeople analytics: 11 metrics that matter for HR teams\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2021-06-15T00:48:20-04:00\">June 15, 2021<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"People analytics: 11 metrics that matter for HR teams\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/people-analytics-hr\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/jessicafuhl\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2020\/10\/Jess-fuhl.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Jessica Leyshon<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/people\/product-capabilities\/hr-people-analytics\/\">People analytics<\/a> is increasingly becoming the norm in HR departments.<\/p>\n\n\n\n<p>Done well, it can help improve recruitment, increase staff retention and enhance employee engagement resulting in ultimately a more successful business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-people-analytics\">What is People analytics?<\/h2>\n\n\n\n<p>People analytics means understanding your employee data just as you understand your customer data.<\/p>\n\n\n\n<p>It\u2019s about applying data-driven approaches to improve the <a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/people\/product-capabilities\/hr-people-analytics\/\">visibility you have of your workforce<\/a>, and how you manage and engage your employees.<\/p>\n\n\n\n<p>It\u2019s about understanding people and their behavior in your company and acting on that data to create even better employee experiences and ultimately a loyal and productive workforce.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-value-of-metrics\">The value of metrics<\/h2>\n\n\n\n<p>Good measurements are key to the success of any organization.<\/p>\n\n\n\n<p>If you can\u2019t measure or analyze your organization, how will you recognize improvements or whether your actions have any value?<\/p>\n\n\n\n<p>Ultimately though, measuring the speed of filling open positions means nothing if your candidate quality is low and your turnover is high.<\/p>\n\n\n\n<p>In the first instance, HR departments need to understand what their business goals are, then decipher what metrics are needed to determine progress.<\/p>\n\n\n\n<p>If one of the company\u2019s objectives is to open a number of new offices within a year, HR and People teams can review the critical positions needed for the new office, talent availability of those positions in the new location, and average time to hire to determine how long it will take to staff the office.<\/p>\n\n\n\n<p>To effectively measure return on investment (ROI), HR teams need to ask the following <a href=\"https:\/\/www.forbes.com\/sites\/louisefron\/2014\/08\/18\/what-organizations-need-now-from-human-resources\/#50e271283173\" target=\"_blank\" rel=\"noopener noreferrer\">questions<\/a>&nbsp;at least quarterly.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are we doing the right thing for our people, customers, and business?<\/li>\n\n\n\n<li>How are we contributing to the top and bottom line?<\/li>\n\n\n\n<li>How are we measuring our organizational effectiveness and impact?<\/li>\n\n\n\n<li>Is the information from these measurements helping guide the success of our organization?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-metrics-matter\">Which metrics matter?<\/h2>\n\n\n\n<p>No data is inherently more valuable than the other, and there is no one size fits all strategy.<\/p>\n\n\n\n<p>However, there are some common metrics that immediately impact talent acquisition, retention and engagement that are important to all businesses, especially in today\u2019s competitive job market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-labor-turnover\">1. Labor turnover<\/h2>\n\n\n\n<p>Are you able to retain staff?<\/p>\n\n\n\n<p>Labor turnover rates have shown a steady increase since 2012, in line with the gradually strengthening labor market.<\/p>\n\n\n\n<p><a href=\"http:\/\/www.onrec.com\/news\/statistics-and-trends\/employee-resignations-rise-for-a-sixth-consecutive-year\" target=\"_blank\" rel=\"noopener noreferrer\">One in five (19%)<\/a> employees resigned from their job in 2017, up from 10% in 2012. How can you create employee experiences that make your workers stay longer?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-absence-rate\">2. Absence rate<\/h2>\n\n\n\n<p>Are there patterns in absence rates?<\/p>\n\n\n\n<p>Although absence rates reached an all-time low in 2017, the <a href=\"https:\/\/www.personneltoday.com\/hr\/average-number-of-sick-days-fell-to-5-6-per-employee-last-year\/\" target=\"_blank\" rel=\"noopener noreferrer\">cost of sickness<\/a> to the employer went up.<\/p>\n\n\n\n<p>HR and People teams can measure the effects of illness and \u2018presenteeism\u2019 on productivity, reduced customer service and missed business opportunities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-total-time-to-hire\">3. Total time to hire<\/h2>\n\n\n\n<p>How long does it take you to fill positions? The median total time to hire for managers is <a href=\"https:\/\/www.personneltoday.com\/hr\/people-analytics-six-essential-hr-metrics-2018\/\" target=\"_blank\" rel=\"noopener noreferrer\">13 weeks<\/a>.<\/p>\n\n\n\n<p>In fact,&nbsp;<a href=\"https:\/\/www.personneltoday.com\/hr\/people-analytics-six-essential-hr-metrics-2018\/\" target=\"_blank\" rel=\"noopener noreferrer\">a quarter<\/a> of employers reported that time to hire across all job roles is getting longer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-annual-leave\">4. Annual leave<\/h2>\n\n\n\n<p>Are your workers taking a break? Can you spot patterns between those who have less days off than others?<\/p>\n\n\n\n<p>What is their impact on productivity? Do you need to encourage your workers to take all their annual leave?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-pay-awards-expected-value\">5. Pay awards (expected value)<\/h2>\n\n\n\n<p>Are your pay packages in line with your peers? How big is your gender pay gap? How will you reduce it?<\/p>\n\n\n\n<p>Benchmark your packages for every pay grade against other businesses of your size and assess whether you need to, and can afford to, increase it, or offer other incentives in order to attract and retain talent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-number-of-employees-per-hr-staff-member\">6. Number of employees per HR staff member<\/h2>\n\n\n\n<p>How big is your HR department and what is their focus? Can you identify any year-on-year trends with a diminished or enhanced HR and People team?<\/p>\n\n\n\n<p>Often understaffed HR and People teams focus on process rather than strategy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-engagement-and-job-satisfaction\">7. Engagement and job satisfaction<\/h2>\n\n\n\n<p>A staff pulse survey will tell you how your workers are feeling, staff turnover will indicate whether workers are happy to stay, and absenteeism rates will indicate whether your staff are happy and healthy.<\/p>\n\n\n\n<p>This is an important metric to track as a drop-in engagement or job satisfaction should flag up a problem in your organization early enough for you to rectify it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-employee-tenure\">8. Employee tenure<\/h2>\n\n\n\n<p>How long are your employees staying? What is the turnover in the top, middle and low-level positions?<\/p>\n\n\n\n<p>Are workers happy? Or are you finding an unusually high turnover in one department or among a certain level of staff.<\/p>\n\n\n\n<p>Do you need to instigate more training, more pay, or simply more supportive managers?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-9-improvement-in-new-hire-performances\">9. Improvement in new hire performances<\/h2>\n\n\n\n<p>What is the success rates of new hires? Are they the right caliber?<\/p>\n\n\n\n<p>Get it right at the beginning, continuously improve your recruitment and onboarding processes and you will see a year-on-year improvement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-10-diversity-metrics\">10. Diversity metrics<\/h2>\n\n\n\n<p>Is your organization really diverse?<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-us\/blog\/recruitment-tips-diversity\/\">Diversity<\/a> of skills, thought, gender, education, ethnic and social background leads to better decision making, innovation, creativity and ultimately the bottom line.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-11-percentage-of-performance-goals-met\">11. Percentage of performance goals met<\/h2>\n\n\n\n<p>Are you setting the right goals and are you reaching those goals?<\/p>\n\n\n\n<p>This takes you full circle to the start. Take time to set your goals. Make sure they are realistic, prioritize what can be achieved year-on-year and then think about your metrics carefully.<\/p>\n\n\n\n<p>If you\u2019ve done this, then your metrics will be invaluable to you in measuring the progress of your business and implementing the appropriate changes to reach those goals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-importance-of-regular-benchmarking\">The importance of regular benchmarking<\/h2>\n\n\n\n<p>Regular benchmarking&nbsp;is an indispensable tool for HR professionals. It is a mechanism for measuring processes, practices and results against the previous year and your competitors to improve performance.<\/p>\n\n\n\n<p>To really make a difference to your organization and to be at the heart of the decision-making process, provide actionable insights that will make a difference to your business.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">HR in the moment: Impact through insights<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<div id=\"centertext-31c05024c8084bcf9820a089753ddfec-0\" class=\"score-center-text \">\n<div id=\"hero-362f46f2373948e6aeedda8945581e94-0\" class=\"score-hero cover-top\">\n<div class=\"score-hero-body\">\n<p>New research reveals how HR can create more value and increase business impact through actionable insights.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/people\/resources\/research-analyst-reports\/hr-in-the-moment-impact-through-insights\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-8787\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Download the report now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1261583718-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1261583718-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>HR departments need to understand what their business goals are, then decipher what metrics are needed to determine progress.<\/p>\n","protected":false},"author":1118,"featured_media":6076,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[47,49],"tags":[17,166],"business_type":[],"lilypad":[],"context":[],"industry":[411,204],"persona":[],"imagine_tag":[],"coauthors":[734],"class_list":["post-8711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-leadership","category-trends-insights","tag-hr-payroll","tag-hr-software","industry-human-resources","industry-technology"],"sage_meta":{"region":"en-us","author_name":"Jessica 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