Don’t be afraid of using HR Metrics in your nursery. In fact using them can significantly improve your nurseries performance. People can get confused as to what HR metrics will provide the most value.
This blog will identify 5 of the most beneficial HR metrics you can start using immediately. They are easy to implement and track and will give you a clearer picture on how your nursery is managing its HR. More importantly it will flag where there might be some areas of concern that require your attention.
HR metrics have the ability to help you understand how your nursery is performing so start using them if you haven’t done so already. You will soon start to see the benefits they can provide.
Here is our suggestion of 5 key HR Metrics that you can start to use today:
1. Employee Absence Rate – this can help you get a snapshot sense of how high your absence rates are. It will calculate the number of work days lost due to absence.
The metric can also be split out per job function or if you have a number of nurseries, per nursery.
Formula: No of working days lost in the month due to absence / (number of employees x no of work days available in the month)
2. Monthly Turnover Rate – This metric will help you understand which job or nursery in a nursery chain is struggling with turnover so you can start to understand the cause.
Formula: No of leavers in month / no of employees
3. Cost Per Hire – This HR metric will tell you exactly how much it is costing your nursery to recruit a new employee.
Formula: Add up your total recruitment costs / no of new hires over a given time period i.e. month; quarter; annual.
4. Revenue per employee – This HR metric will indicate how much each of your employees is earning for your business.
Formula: Revenue / No of employees
5. Turnover Costs – This HR metric will show you how much it is costing your nursery when an employee leaves. You will need to calculate a number of costs to your nursery:
- Pre Departure Costs
- Vacancy Costs to replace employee
- Induction / Training Costs for new employee
- Cost of administrative and recruitment tasks
Once you have a complete list of all of your associated costs in these areas you can then calculate the total cost of turnover per employee by simply adding them all together.
For the total annual cost of turnover apply the following simple formula:
Total Cost of Turnover x Number of departing
(per employee) employees per year
Just by starting to use these 5 HR Metrics you will see how powerful this data can be in helping you to shape the future direction of your nursery. By using HR metrics such as these it will save you time and money in the long run.
I hope this blog has been helpful and you can now see the value of using HR Metrics in your nursery.
If you have any comments or feedback I would be delighted to hear from you.
The Nursery HR People
Less HR More Learning!
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