In this article, we look at the 5 KPIs that every HR team should track to best manage the future of work, predict skills gaps, improve employee satisfaction, and enhance HR performance.
HR teams will need to make decisions based on clear and trustworthy data. This data should match the company's future needs.
What are the 5 HR KPIs to best prepare for the future?
1. Skill Obsolescence Rate
The rapid pace of technological advancements such as AI means that some skills are becoming obsolete, while new ones are emerging. Companies that fail to stay ahead of these changes risk talent shortages and critical skill gaps.
๐ How to measure it?
- Regularly assess employeesโ skills through performance reviews, self-assessments, and other evaluations.
- Use skills mapping to track existing competencies and identify future needs.
- Compare your company's skill evolution with broader market trends.
โ How to Optimize It:
- Implement proactive skill management to address skill gaps immediately.
- Invest in re-skilling and up-skilling programs to bolster your workforce.
- Leverage skills management tools to quickly identify training opportunities and develop your workforce.
2. Business Agility Index
In an unpredictable world, the ability to adapt is crucial. Rigid HR processes can leave organizations ill-equipped to handle changes in the market. Agility is key to surviving and thriving in today's and tomorrow's competitive environment.
๐ How to measure it?
- Average amount of time it takes to implement new skills within a team.
- Rate of adoption of new HR tools and processes.
- Internal mobility vs. external recruitment: an agile company favors investing in employee development to foster skills and internal mobility rather than systematic recruitment.
โ How can we optimize it?
- Encourage internal mobility creates flexible and valuable career paths for employees.
- Leverage HR tools that can accelerate and optimize talent management.
- Foster a culture of learning and development where every employee is a plays an active role in their development centered around training and professional development.
Tomorrow's HR manager needs to steer their strategy with precise, actionable data. By integrating these KPIs into their decisions, they can anticipate changes in the workplace, secure essential skills and reinforce their strategic role within the company.
3. Attrition Rate for Key Employees
Not all employee departures are equal. Losing top talent or key team members can significantly impact a company. Failing to track this KPI can lead to knowledge loss and costly recruitment efforts.
๐ How to Measure It:
- Analyze turnover rates among key employees with specialized skills.
- Conduct exit interviews to understand the reasons behind resignations.
- Track the average tenure of employees in critical roles.
โ How to Optimize It:
- Develop a strong Employer Value Proposition (EVP) to attract and retain top employees.
- Focus on delivering a positive employee experience from onboarding to offboarding.
- Implement a succession planning strategy to minimize disruption if key employees leave.
4. Career Mobility Fairness Index
Diversity and inclusion are important issues today. HR must make sure all employees have equal chances to advance. A lack of fairness in career progression can generate disengagement, frustration and premature departures.
๐ How can we measure it?
- Compare the share of internal promotions according to gender, age, seniority, or other diversity criteria.
- Track differences in salary progression and levels of access to training between different groups of employees. Analysis of payroll and training rates can provide a wealth of insights.
- Evaluate the perception of opportunities via internal surveys.
โ How to optimize it?
- Implement a regular audit of HR practices to identify unconscious bias.
- Develop mentoring and sponsorship programs to encourage equal opportunities.
- Make promotion and mobility criteria transparent and objective.
5. Employee Wellbeing (Burnout rate)
The balance between performance and well-being is becoming a strategic factor. An overworked or suffering employee will perform less well. He or she will be more prone to burnout and therefore more likely to leave the company.
๐ How can we measure it?
- Track the burnout rates as well as workload strain index via reporting fed by individual reviews or employee-manager exchanges.
- Measure work-life balance via anonymous surveys or barometers.
- Monitor absenteeism and requests for exceptional leave.
โ How to optimize it?
- Set up regular formal and informal reviews and, above all, act on the results.
- Adapt HR policies that properly address the needs and workload realities of your employees. Working conditions must be adapted to the specificities of each department and each position.
- Involve managers in talent management by encouraging a managerial culture based on listening and support.
๐ Summary: truly strategic HR KPIs for tomorrow
HR teams need to move towards a data-driven approach that goes beyond simply tracking engagement or turnover. These 5 KPIs offer HR proactive, actionable data to best prepare their organization for the future:
- Skill obsolescence rate โ to anticipate training needs and secure the future.
- Organizational agility index โ to ensure flexibility and rapid or even real-time adaptation of teams.
- Strategic talent attrition rate โ to preserve key skills and limit critical losses.
- Career opportunity equity rate โ to guarantee the implementation of fair, merit-based progression.
- Team well-being and resilience indicator โ to safeguard employees' mental health and motivation.
๐ You now know how to calculate future-of-work KPIs which will enable HR to:
- Make informed management decisions
- Optimize their actions (recruitment process, skills development, etc.)
- Demonstrate their impact on the company's overall performance.
๐ก It's up to you! To best prepare your organization for the future, rely on your talent management software to drive valuable insights from your workforceโs data and optimize your HR strategy.