When you hire employees, you hope they will stay with your company for some time to come. You’re likely aware, however, that employee turnover is still an almost inescapable part of modern business.
That’s why you need employee retention strategies. You put these strategies in place in hopes of encouraging employees to stay on longer with your company.
Not every retention strategy will work for your business. This is where HR metrics enter the picture. The data you collect can help you design better retention strategies for your business. Here’s how.
HR Metrics Provide You with Insight
HR metrics can give you a better picture of what’s going on in your business. How high is turnover? How often do you need to hire?
You can also collect data such as how long the average employee stays with your company. If it’s a relatively short period, it could indicate there’s a problem with your hiring process or onboarding rather than your retention strategy. You may not be finding the right people in the first place.
If employees stay for a year or two, your retention efforts could use work. They may not be enough to counteract offers from your competitors or you may not be providing employees with enough room to grow.
It could also indicate a demographic issue within the company, as older employees may be retiring.
Who Is in the Workplace?
The next set of data you’ll want to look at is related to the demographic information. As mentioned, older employees are likely to retire, which may be inflating your turnover statistics and forcing you to hire. Internal promotion could also be a trigger for hiring.
In either case, employee retention strategies may not be the solution.
Demographic information can also give insight into what retention strategies might work, because these numbers let you know who’s in the workplace. If most of your workforce is aged 40 or older, they’ll likely be more interested in good pension plans and medical benefits.
Younger people are still interested in benefits, but they may want different things. They might also want more flexible working arrangements or more learning and development opportunities.
Take a Look at the Organization
It’s also important to determine whether there’s a common denominator among employees who leave, and HR metrics can help. If employees from the same department are all leaving on a regular basis, it could indicate the dynamics of that part of your company may play a role.
This could be a poor atmosphere caused by a manager or team member. If employees with the same job title leave, it might indicate issues with the role. Maybe someone is being asked to do too much, or perhaps there’s nowhere to grow, leading to employee dissatisfaction.
Ask Employees What They Want
You can use HR metrics to determine the common factors that make employees decide to leave. You can also ask employees for their honest feedback during exit interviews or get feedback during employee engagement and satisfaction surveys.
Compiling the data and analyzing it should reveal patterns in what employees love about your company and what they think could improve. This, in turn, can help you take steps to improve your employee retention strategies.
A benefits program could be redesigned with a younger workforce in mind. If compensation or promotion comes up, take a look at those factors. What could you do to offer your employees more and entice them to stay?
HR metrics can illuminate the right path and help you choose the retention strategies that will work for your organization.