7 Digital HR KPIs for 2022

Simon Carvi, HR Expert Contributor at Huneety.com.

There are already tons of metrics and KPIs to choose from. The speed of change has accelerated organizations must challenge the way they monitor performance to better apprehend the future.

In this article, we look at 7 modern KPIs that HR can follow in 2022. For each, we provide a definition and a formula.

  1. EMPLOYEE NET PROMOTER SCORE (ENPS)

The employee net promoter score is a way of measuring how your employee feels in the company.

Net promoter score has been traditionally used by organizations to measure customer satisfaction and/or customer experience. HR is now using it internally to measure the satisfaction of its employees.

KPI Formula : [Total percentage % number of promoters within the period / Total percentage % number of detractors within the period]

Example : Get ENPS score within the range of {value} and {value}

% of promoters and detractors are usually collected through employee surveys with scoring questions such as : “On a scale from 1 to 10, how likely are you to recommend [company name] to your family, friends or network?”

  • 0-6: Detractors, employees who are highly dissatisfied with the organization and spread negative word of mouth.
  • 7-8: Passives, employees who are neither emotionally invested nor disengaged.
  • 9-10: Promoters, extremely loyal employees to the organization, and spread a positive word around.

Important: Once the Net promoter score survey is performed, it must be followed by a concrete action plan.

  1. EMPLOYEE PRODUCTIVITY

Employee productivity measures how effective is your workforce at work, over a certain period. Employee productivity tends to increase together with new work methods, technology integration, effective management, and work relationships.

KPI Formula :  Total output / Total Input

Employee productivity per number of hours: If the company generated 10,000 USD revenue over the period using 200 hours. The employee productivity will be 10,000 / 200 = 50

Employee productivity per number of personnel: If the company generated 10,000 USD revenue over the period with 10 employees. The employee productivity will be 10,000 / 10 = 1000

Example: Increase employee productivity (per number of hours) by XX%

This indicator is especially useful for :

  • Analyzing trends
  • Monitoring individual performances
  • Making business decisions such as workforce planning or, in some businesses, calculating the cost of goods sold.
  1. TIME SAVED

With the rise of A.I and automation tools, C-Suite needs to be convinced that new technology is worthy of investing. Besides productivity approaches, a possible way to facilitate decisions is to highlight time saved as a result of automation and technology integration.

KPI Formula :  (Total time saved as a result of technology integration / Total time to do by hand) X 100 %

Example: Save XX% on manual tasks

  1. REMOVAL OF NON VALUE ADDED ACTIVITY

Things like searching for information, dealing with errors from previous steps in the process, processing mistakes, excessive walking and moving around, meetings, manual data processing, setting up machines or processes and waiting for others to provide you work or information, are all typical examples of non value added activities.

KPI Formula :  Total number of non-value-added activities deleted within the period

Example: Delete XX non-value-added activities within the period

  1. EMPLOYEE LEARNING AGILITY

Learning new skills is one of the major shifts of the post-pandemic era. Employers shall deploy programs to improve the capabilities of their staff in order to build an agile workforce. Being able to learn new skills can be monitored in both quantity and quality.

KPI Formula:  In quantity : (Total skills at year n – Total skills year n-1) / (Total skills year n-1)

In quality : (Total Skill evaluation score after assessment – Total skill evaluation score before assessment )–  (Total skills score before assessment)

Example: Improve the company’s learning agility by xx% within the period

To build skills, line managers shall provide learning opportunities coming from stretch assignments (on-the-job learning), social learning, and formal learning activities.  It is recommended to pre-assess employees to gauge their current skills proficiencies. Then, follow up with a final assessment and track improvements.

  1. CHANGE SUCCESS RATE

Change management is increasingly important. When changes are well managed, organizations ensure effective project deliveries and consolidate their competitive advantages. Measuring change success rate appears to be a key indicator as it suggest to define “success”.

So how do you know a change has been successful? Below are 3 propositions to define success in change management.

  • Increased adoption: the volume of activity may indicate whether a change has yielded the expected outcomes.
  • Increased competency level: when users have adopted a new system, they must become more competent at using it.
  • Better perception: monitored by surveys and employee feedback.
  • Increased performance: Defined by higher performance due to the change.

KPI Formula:  Total number of successful changes / Total number of changes executed within the period

Example: Reach XX%  success rate on initiated changes

  1. HR SYSTEM ADOPTION

What is an HR system if only HR is using it?

HRMS and LMS are now part of the employee’s daily life in the company. Poor usage of the company’s HR systems may reflect negatively on employee engagement and experience.

In addition, HR teams shall think about how to integrate HR systems into the existing workflow of the company in order to leverage its use. On top of this, some companies may have some HR systems, but not use them to their full capacity.

KPI Formula:  [Total number of unique employees using HR system (Daily – weekly or monthly basis) / Total number of employees]

Increase {company}’s HR System adoption by {percent}

And you? What metrics will you use to monitor digital transformation in 2022?

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Simon Carvi is an HR expert professional presenting over 7 years of experience gained through roles in Talent Acquisition an Employee Retention globally and in APAC. Simon is passionate about how people learn and future of work. He helps organisations upskill their workforce by leveraging skills data and A.I as Huneety Founder.

Huneety is skills Intelligence & Assessment company whose mission is to bridge the skill gaps between the ever-changing labor market expectations and the workforce.  As part of its mission to bridge the skills gap, Huneety makes sure each competency is linked to measurable KPIs & OKRs with SMART definitions!

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