In this post, we’ve collaborated with ChartHop to dive into three employee lifecycle KPIs you can derive from employment data.
If you’re a B2B application selling to employers—an employee training platform or employee engagement platform, for instance—then you know that creating additional value for your customers is critical to building a stickier product and, ultimately, ensuring your success. One way to create this value is to offer your customers deeper insights into their employee lifecycle by tracking the metrics customers care most about.
In this post, we’ve collaborated with ChartHop to dive into three employee lifecycle KPIs you can derive from employment data housed in your customers’ HRIS and payroll systems. Read how they are transforming their customers’ employee lifecycles here.
By surfacing similar metrics for your customers, you can help them create a better employment experience.
Let’s get started!
As employees move up the ranks or across positions, the path they take can be tracked. Known as career mobility, this movement encompasses both the standard promotional structure (i.e., when employees earn greater responsibility and more senior titles) as well as lateral movement between teams and departments. So, why is this data important?
Tracking employee movement across positions and departments allows you to provide your customers with a detailed summary of their organization’s propensity to create growth and development opportunities for their employees. They can then use this data to give new hires a better understanding of the long-term career paths available to them from their first-day onwards—which can aid in cultivating a workplace culture that’s conducive to employee retention.
This metric also allows you to provide your customers with more granular insights into the flow of employees between departments. By divvying up the data by team, you can weigh how certain sectors of the organization are performing in regard to developing growth opportunities against others and reveal areas in need of improvement.
Calculating internal mobility is simple: take the total number of internal movements and divide it by the average number of employees during the same time period. Once you have this number, multiply it by 100 to turn it into a percentage.
Because many systems don’t show historical organizational structure changes, you will need to record this data over time across the organization before you can calculate internal mobility rate. Here’s how:
Learn how to ensure equitable promotions for your customers’ employees.
Any income an employee earns in the course of their regular employment is considered part of their compensation history. This can include their salary, bonuses they’ve received, commissions they’ve earned, and tips.
Knowing this information is important because it gives you a deeper understanding of your customers’ compensation distribution. This helps you flag potential areas of inequity or inconsistency across different teams, demographics, and positions, allowing your customers to improve employee retention in the long run and offer competitive compensation packages that draw top-quality talent.
To calculate compensation history, simply add an employee’s salary, bonuses, commissions, tips/wages, and any other sources of income together for the time period you want to track.
To gain the most visibility into employee earnings, you’ll want to leverage both Payment and Pay Statement endpoints as well as the Employment endpoint, which contains data like base income and pay frequency.
Alternatively, many providers can also provide access to historical compensation changes which Finch surfaces in the Employment endpoint under the income history array. This array will include the unit, amount, currency, and effective date of previous income changes.
Read more about how companies can build responsible compensation plans.
Employee turnover rate is the percentage of employees that leave an organization within a given period. You can use this data to drill down into more specific subsets of your customers’ organizations like individual departments or demographic groups.
If your product is centered around increasing engagement or employee retention, this data is crucial, as it allows you to spot potential issues that can save your customers money and improve employee morale and retention over the long term.
To calculate an organization’s turnover rate, you’ll want to divide the employees that left over a particular span of time by the average number of employees for that same period.
Pulling the data you need to calculate turnover rate from Finch is a simple process:
Find out what turnover rate can tell you about your customers’ business.
By leveraging the above insights, you’ll be able to better add value to your customers’ organizations—helping them streamline employee development, increase employee engagement, and boost team cohesion. This creates a better work experience that makes them more likely to retain their workers—and retain your platform’s services.
Discover how Finch helps you harness the power of employment data to provide your customers with key insights in real time. Click here to sign up for free.
Want to get in touch with our friends at Charthop to unlock people insights for your organization? Click here to learn more about what you can do when all your people data is in one place.