In the ever-evolving landscape of Human Resources (HR), it’s crucial to measure and monitor your performance effectively. But with a sea of data and metrics available, it can be overwhelming to pinpoint what truly matters. Fear not, for we’re here to help you navigate the world of HR Key Performance Indicators (KPIs) tailor-made for Singaporean HR divisions.
Why are HR KPIs so vital? Well, they’re the compass guiding HR professionals in Singapore to achieve their organizational goals, enhance employee satisfaction, and ensure that HR practices align with the company’s strategic objectives. To shed light on this topic, we’ve curated a list of the top 5 HR KPIs, complete with examples, metrics, and scoring methods.
The Top 5 HR KPIs for Singaporean Businesses
1. Employee turnover rate
Employee turnover rate is the percentage of employees who leave the organisation within a given period, either voluntarily or involuntarily. It is calculated by dividing the number of employees who left by the average number of employees during the period. A high turnover rate can indicate low employee satisfaction, engagement, or retention, as well as increased costs of hiring and training new staff. A low turnover rate can indicate high employee loyalty, commitment, or performance, as well as reduced costs of recruitment and onboarding.
For example, if your organisation had 100 employees at the start of the year and 90 employees at the end of the year, and 15 employees left during the year, then your employee turnover rate for the year would be:
Employee turnover rate: (15 / ((100 + 90) / 2)) x 100% = 16.67%
2. Employee retention rate
Employee retention rate is the percentage of employees who stay with the organisation within a given period. It is calculated by subtracting the employee turnover rate from 100%. A high retention rate can indicate high employee satisfaction, engagement, or retention, as well as reduced costs of hiring and training new staff. A low retention rate can indicate low employee loyalty, commitment, or performance, as well as increased costs of recruitment and onboarding.
For example, if your employee turnover rate for the year was 16.67%, then your employee retention rate for the year would be:
Employee retention rate: 100% – 16.67% = 83.33%
3. Employee satisfaction score
Employee satisfaction score is a measure of how happy and content employees are with their work environment, culture, benefits, and opportunities. It is usually obtained by conducting surveys or interviews with employees and asking them to rate various aspects of their work experience on a scale of 1 to 5 or 1 to 10. A high satisfaction score can indicate high employee morale, motivation, or productivity, as well as positive word-of-mouth and employer branding. A low satisfaction score can indicate low employee morale, motivation, or productivity, as well as negative word-of-mouth and employer branding.
For example, if you surveyed 100 employees and asked them to rate their overall satisfaction with their work on a scale of 1 to 5, where 1 means very dissatisfied and 5 means very satisfied, and you received an average rating of 4.2, then your employee satisfaction score would be:
Employee satisfaction score: (4.2 / 5) x 100% = 84%
4. Employee engagement score
Employee engagement score is a measure of how involved and committed employees are to their work and the organisation’s goals. It is usually obtained by conducting surveys or interviews with employees and asking them to rate various aspects of their work engagement on a scale of 1 to 5 or 1 to 10. A high engagement score can indicate high employee performance, innovation, or collaboration, as well as lower absenteeism and turnover rates. A low engagement score can indicate low employee performance, innovation, or collaboration, as well as higher absenteeism and turnover rates.
For example, if you surveyed 100 employees and asked them to rate their level of engagement with their work on a scale of 1 to 5, where 1 means not at all engaged and 5 means highly engaged, and you received an average rating of 3.8, then your employee engagement score would be:
Employee engagement score: (3.8 / 5) x 100% = 76%
5. Employee net promoter score (eNPS)
Employee net promoter score (eNPS) is a measure of how likely employees are to recommend the organisation as a place to work to others. It is obtained by asking employees one simple question: “On a scale of zero to ten, how likely are you to recommend this company as a place to work?” Based on their responses, employees are classified into three categories: promoters (9-10), passives (7-8), and detractors (0-6). The eNPS is then calculated by subtracting the percentage of detractors from the percentage of promoters. A high eNPS can indicate high employee loyalty, advocacy, or referral, as well as positive employer branding and reputation. A low eNPS can indicate low employee loyalty, advocacy, or referral, as well as negative employer branding and reputation.
For example, if you surveyed 100 employees and asked them the eNPS question, and you received 40 promoters, 40 passives, and 20 detractors, then your eNPS would be:
eNPS: (40% – 20%) = 20%
Conclusion
These five key HR KPIs serve as the guiding stars for HR professionals in Singapore, helping them steer their organizations toward success. By carefully measuring and analyzing employee turnover, retention, satisfaction, engagement, and net promoter scores, HR divisions can not only improve their effectiveness but also contribute significantly to the overall health and growth of the company.
Remember, in the dynamic world of HR, the journey toward excellence is ongoing, and these KPIs are your compass to navigate through the ever-evolving landscape of human resources. So, embrace them, adapt them to your organization’s unique needs, and let them lead you to a brighter, more productive, and employee-centric future. Your path to HR success in Singapore begins with these KPIs as your trusty guide.
