What are the KPIs used for Compensation and Benefits as an HR
As an HR professional, you're probably wondering which KPIs can be used to track your results and report your progress. You can't improve what you don't measure. What this quote tells us is that you need to define KPIs to be able to improve in specific areas and showcase the progress to the team.
As an HR professional, you're probably wondering which KPIs can be used to track your results and report your progress.
You can't improve what you don't measure.
What this quote tells us is that you need to define Key Performance Indicators (KPIs) to be able to improve in specific areas and showcase the progress to the team.
Install BuddiesHR suite of Slack apps to improve culture, engagement and productivity.
In a series of articles we will go through the KPIs that are associated with Human Resources specialists in different categories such as Compensation and Benefits, Diversity, Equity, and Inclusion, HR Service Delivery, Workforce Planning and Analytics, Performance Management, Onboarding and Training, Compliance and Risk Management, Recruitment and Staffing, Employee Engagement and Satisfaction.
For compensation and benefits, these KPIs focus on making sure that employees are fairly paid compared to others in similar roles, that their pay and benefits help the company reach its goals, and that they're happy and likely to stay.
Before defining the right KPIs for compensation and benefits, make sure to have a solid Payroll and benefits software with built in compliance.
Here are the KPIs to look at for compensation and benefits as an HR:
- Compensation Ratio (to market): How employee pay
compares to market rates. - Benefits Participation Rate: The percentage of employees
who use available benefits. - Benefits Satisfaction Score: How satisfied employees are
with their benefits. - Total Rewards Satisfaction Score: How satisfied employees
are with their overall compensation and benefits package. - Salary Increase Ratio: The average percentage of salary
increases. - Bonus Payout Ratio: The percentage of employees who
receive bonuses. - Stock Option Participation Rate: The percentage of
employees who receive stock options. - Compensation Equity Ratio: The comparison of
compensation between different employee groups. - Benefits Cost per Employee: The average cost of benefits
per employee. - Compensation and Benefits Competitiveness Score: How
well the company s compensation and benefits compare to
other companies.
If you think something is missing, please reach out to us at hey@buddieshr.com
