Recruitment, talent management, training: these three roles of the HR function are undeniable drivers of performance within the company. Here are the key indicators for each of them to determine an incentive compensation in the HR function that is motivating and achievable.
WHICH INDICATORS TO CALCULATE INCENTIVE COMPENSATION IN THE HR FUNCTION?
The human resources functions are deeply changing. Their scope of action of their mission widens, in particular with topics related to the well-being at work, the balance between professional life and private life, etc.
Like any other function within a company, they are allotted performance. Much more than a support function, it contributes in its own way to the business and the overall performance of the company. The allocation of incentive pay plan tends to become systematic. Incentives can relate to the number of recruitments made, the number of new recruits validating the end of their probationary period, the optimization of the training budget or the number of disputes settled internally and not by the labor courts.
Recruitment
Human capital remains the most important factor of an organization. Therefore, in their pursuit of the ideal candidate, the HR functions hold a significant performance of the company.
As such, it would be advisable to encourage them on key indicators influencing the quality of recruitment, such as, for example:
- the number of recruitments made over a given period
- the number of truly qualified applications
- the potential loss of good candidates during the recruitment process
- the retention rate in the company after one year
- the number of applications obtained through a possible co-optation program
- the number of spontaneous applications
- the cost of recruitment
Digital provides you with particularly effective measurement tools for your HR actions, which can be used as a variable part of employee compensation.
In the case of a career site, for example, you will be able to verify the efficiency of the candidate experience: is your application process clear? In one click or tedious? Possible from any type of terminal including mobile or not? Digital helps you to quantify and qualify the application: the time spent by application, the time spent at each stage of the process, the ratios of candidates selected at each stage, the performance of each recruiter. A good ATS (Applicant Tracking System, an HR software that helps recruiting teams to process applications received faster) will bring you these KPIs.
You may also benefit from measurement indicators of your job offers on different media. Which sources are most effective for targeting qualified candidates? Measure the conversion rate of your different media and make your media investment profitable.
Talent management
Another important role of HR is the retention of new recruits. It allows them to significantly reduce recruitment costs. HR must ensure that it retains the strategic talents of the company. An important competitive factor, this retention of new employees is essential. Especially on positions with high demands on the market. Key indicators could be in this area:
- the number of ambassadors, people involved ...
- the general turnover of the company
- well-being in the company, which is measured in particular through internal satisfaction surveys
- the quality of the social climate, with performance scores, an evaluation grid indicating the days of strikes, proposals from the social partners, etc.
Training o f employees
Here again, HR has an important role to play in the company's performance in terms of employability and career development. To measure the performance of their training policy, companies have three key indicators:
- the average number of hours of training per employee per category
- the rate of access to training
- the existence of skills development and lifelong training programs to ensure the employability of employees and to help them manage their end of career
There are also other indicators indicating the proper deployment of a training plan. These include the percentage of employees who have not benefited from training for at least 2 years, the financial effort of training, the number of trainees ... Or the percentage of employees benefiting from interviews periodical career evaluation and career development with a training component. Other examples: the number of employees who have undergone certification training, the success rate of employees in the end-of-training examination, the number of people who have been promoted through training....
