Congratulations…you’ve just hired several new employees for your growing company. You want the best talent available and you’ve got it. Or have you? Measuring an employee’s contribution to the company goes beyond performance reviews. Think metrics. Both efficiency and effectiveness metrics.
Efficiency metrics are easy to develop using information such as how long it takes to fill the position, the cost of hiring an employee, and the turnover rate. But effectiveness metrics are a little more complicated and are often overlooked.
Effectiveness metrics help determine the employee’s impact on the overall success of the company. These metrics take longer to develop and require a commitment from the company. Whereas efficiency metrics can quickly show the financial impact of the new employee, effectiveness metrics study the employee’s performance over a period of time to determine the financial impact.
Not sure where to start? Check out Shanil Kaderali’s article How to Measure Whether You’re Hiring Good People for tips on how to define these metrics.
Published by Conselium Executive Search, the global leader in compliance search.