Metrics are an important indicator of how well your business is doing and what you need to do to support your business growth.
Gathering, interpreting and acting on metrics takes time and effort, so it is easily overlooked by managers.
It is also easy to focus on the wrong metrics like vanity metrics. These are metrics that do not necessarily correlate to the numbers that actually matter; the ones that have an impact on your bottom line. They are also easily manipulated.
In an HR world, these might be things like how many new starters you had in a year. What does that tell you about your businesses performance? Nothing really! What you really want to know is how many stayed and how well they are performing.
The first step to take then is to pick the metrics that are relevant and will show you the numbers that matter.
Once you have decided what metrics matter to you, you need to measure them. Obvious I know, but a common pitfall is getting carried away and having too many metrics to measure, making it impossible to keep on top of them. In order for them to add value, you need to be able to look at the results regularly and take action based on those results. Make sure to only pick a few metrics to focus on. If you can’t decide which ones are worth pursuing and which ones are not, look at the results you get from each of your metrics initially and then choose the ones that really provide you valuable insight for business growth to keep using.
A metric that can provide invaluable data is your NPS or Net Promoter Score.
At Reality HR, we get an NPS score from our clients during our client surveys. That’s because it is a really simple question that provides a lot of insight: “How likely is it that you would recommend my product/ service to a friend/colleague/other organisation?” This is usually accompanied by offering a scale of 1-10.
We often support our clients with employee surveys and use NPS as a way to measure employee engagement, motivation, and loyalty. For example, you could ask on a scale of 0-10 how likely they are to recommend working for your company to a friend. Then ask them why they gave the answer, what was the reason for their scale, or what can be improved.
If you want support with employee surveys or finding out how Reality HR could support your business growth, give us a call on 01256 328 428 or click here to arrange a callback.