What is HR reporting?
HR reporting is the process of tracking key metrics about your workforce generally through human resource information systems (HRIS). In addition to tracking and measuring data, these systems help HR manage payroll, benefits and other transactional HR needs.
HR reports allow you to analyse and compare many data points, including full-time versus part-time workers, workforce gender ratios, employee turnover and the time it takes to make new hires. There are many options to doing this. For example, you can monitor data points on Excel spreadsheets or subscribe to a software partner.
What HR metrics should be tracked?
Many HR metrics, or key performance indicators (KPIs), lead to larger answers when compared against other data points. This combined data helps with statistical correlation analysis of historical trends. Top metrics to track include:
Gender: Often measured for diversity and equality purposes, as tracking gender numbers helps for example with assessing pay gaps.
Education level: This partially assesses employees' overall qualifications for current positions. It also helps measure workforce % with a university degree.
Function type: This metric characterises the different roles at a business, in terms of departments and also geographic areas.
Full-time equivalent (FTE): An FTE is a measure of hours worked by a single employee on a full-time basis. This system is used to convert hours worked by multiple part-time employees into hours worked by a full-time employee. On an annual basis, an FTE is equivalent to 2,080 hours equating to 8-hours per day for 5-workdays per week.
Active employees: This metric shows the number of employees currently on your payroll, often referred to as headcount.
Turnover: In the context of HR, turnover represents % of employees who leave due to voluntarily or involuntarily reasons, including termination, retirement or replacement.
New hires: This metric shows the number and % of employees who joined the organization within the past year.
Absenteeism: This shows the average % of time or number of days that employees were absent in the previous period.
Cost of absence: This metric refers mainly to unplanned absenteeism, which is essential in uncovering one of the most expensive unseen costs in the workplace.
Cost of labor: This is the sum of all employee compensation, including wages, benefits and employee PAYE/NIC contributions, paid by the employer. The cost of labor can also be broken into direct and indirect (overhead) costs.
Training costs: This metric refers to the total amount spent onboarding new and training existing employees.
Recruitment costs: The total cost of recruitment efforts often including the amount spent on external agencies.
These are just some of the more common HR metrics that can provide you with a better understanding of how your organization is performing compared with the competition.
What is the importance of HR reporting?
Tracking HR metrics allows companies to know themselves better and use data to improve their business and workforce. Benefits of HR reporting include:
Strategy development: Each year, companies develop new strategies and projections, and businesses need to assess HR metrics as a part of any such planning.
Data transparency: When your team members can view data about your organisation they feel more informed, engaged and connected to the company, crucial for inclusivity.
Accountability: As with all other departments and areas of a company, HR needs to share and explain costs and any needs for additional resources.
What is an HR dashboard?
An HR dashboard allows the user to visualise large amounts of data in an organised and useful manner. In essence you see all the important data, at a glance.b