If you look at the job portals you will found that there is more number of job seekers than the number of jobs. Then you must be thinking that what is the use of retaining an employee?
Employee retention is important as whenever a new employee joins any job there is a delay in the whole process. Hence, companies are working out on different strategies that will help them retain their employees. Employee analytics is one of the best ways to retain talent of any organization. Different metrics that come handful are
Cost per Hire
CPH deals with the total cost your company has to bear for sourcing, recruiting, staffing and training a staff. It explains the total cost that you have to bear in order to full any particular position.
There are different channels from where you can hire. All of them do not provide you the same skill or mindset of people. Thus, in employee analytics the most important thing to judge is finding out the channel that will give your company the best quality of employees and would incur the minimum cost.
Cost of Turnover
Cost of turnover is the most important metrics to decide as it tells the total cost a company has to bear for any employee who is leaving the concern. It is not only their hiring costs, but it includes training cost, salary paid, equipment issued too. If the employee is of higher strata then the opportunity cost for the employee is also included in the cost of turnover.
Workforce Turnover Rate
The Workforce turnover rate is another important analytics that is useful for talent retention. It is the ratio between the numbers of people leaving the concern to the total number of employees working in the organization. In order to find this you need to divide the employees leaving by the total number of employees of the concern.
With the help of yield ratios you can understand that how precise and accurate are the strategies applied for hiring. They represent the total hires from the total number of applicant for any particular position. Naturally having a huge number of applicants is not expected, what is best is to get applicants who can fit in the position. This is possible with proper description of the job.
Talent retention with these analytics
These five analytics related to employee hiring is not only useful for management to understand their hiring process but also for retaining talent. Once they have good ratios of all the analytics they can be sure that there rate of employee turnover is low. Checking these out properly ill also help in taking further decisions.