Top KPIs For Measuring Your Workforce
KPIs (key performance indicators) is a measurement to help you understand how your employees and your business is performing. In this case, we are taking a look at the best KPIs to measure the success of your employees. Their success is your businesses success – so it is critical that you have a keen understanding of how your employees are performing.
Don’t let your employees be a part of the 46% of new hires who fail within 18 months of starting.
Total Workforce Measurement
Employee Turnover Rate
Your employees’ engagement is highly linked to their performance. It’s simple, happier employees, perform better. Start by maintaining a high-level look into your employee turnover rate.
# of employees that left in a given month / # of employees you had at the beginning of the month
If the result is more than 10% you need to re-evaluate your workforce management practices. Check out our suggestions to bolster employee happiness, Here are 4 Ways To Make Your Employees Happy and Boost Productivity. And according to Good.co, companies with engaged employees outperform up to 202% better!
Sales per Employee Ratio
This provides you insight into how expensive it is to run your business. By dividing your business’s annual sales by its total employees you can see how efficient your business is running. Businesses with higher sales-per-employee figures tend to be more efficient and have higher profit margins than those with lower figures, according to Investopedia.
By offering anonymous and identifiable surveys, you can get a transparent look into how satisfied your staff is. Provide your staff with the opportunity to give candid feedback through an online survey,ere, you can identify trends and anomalies when it comes to needing to adjust workforce management strategies. This will also help you set benchmarks and objectives by being able to aggregate this information across the force.
Individual Employee Measurement
Look into sales numbers for each of your employees. Divide employee sales by wages of that employee. The higher the percentage, the more the employee sells per dollar paid to him/her. Percentages below 100% mean that the employee’s labor costs are higher than the sales he or she brings in.
Go deeper and understand profit per employee. Calculate your profit (sales minus cost) divided by labor. The higher the percentage the more profit the employee is bringing in per dollar paid to him/her. Percentages below 100% mean that the employee’s labor costs are higher than the profit he or she brings to the business.
The Employee Profit Report feature is a report viewable in the Revel backend. This report gives you a comprehensive overview of each employee’s performance and also alerts you to employees who may be hurting your business’s profit margin. By flagging percentages that are below 100%, Revel alerts you to the fact that certain employees may not be as efficient or profitable as others.