webinar - 5 hr data points every small business should track

5 HR Data Points Every Small Business Should TrackWith Calculations

WEBINARS

http://www.zanebenefits.com

Your Presenter

Christina Merhar, Zane Benefits

Christina Merhar is a Senior Editor for Zane Benefits, the leader in

individual health insurance reimbursement for small businesses.

Christina joined Zane Benefits in 2012 and has a passion for helping small

employers understand the ins and outs health benefits and human

resources.

You can find her daily contributions at www.ZaneBenefits.com/blog.

@ChristinaAtZane

www.ZaneBenefits.com

http://www.zanebenefits.com/blog

http://www.zanebenefits.com/

Join the conversationWhat is Zane Benefits?

Zane Benefits is the leader in individual health insurance reimbursement for small businesses. Since 2006, Zane Benefits has been on a mission to bring the benefits of individual health insurance to business owners and their employees.

Zane Benefits' software helps businesses reimburse employees for individual health insurance plans for annual savings of 20 to 60 percent compared with traditional employer-provided health insurance. Today, over 20,000 customers use Zane Benefits' software, services, and support to reimburse individual health insurance plans purchased independent of employment.

Zane Benefits' software has been featured on the front-page of The Wall Street Journal, the USA Today, and The New York Times. Zane Benefits was founded in 2006 and is based in Salt Lake City, Utah.

DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state.www.ZaneBenefits.com



Join the conversation

1. Why HR Data Matters

2. 5 Data Points All Businesses Should Be Tracking

✔ Employee Retention Rate

✔ Cost of Employee Turnover

✔ Current and Historical Compensation Data

✔ Recruiting and Retention Expenses

✔ Training and Onboarding Expenses

3. Conclusion / Q&A

Agenda



zanebenefits.com | 1-800-391-9209

Why HR Data Matters




Join the conversationWhy HR Data Matters


First, an example...


Join the conversationWhy HR Data Matters


>> Data Drives Smart Decisions <<

● Get a pulse on the health and stability of our workforce

● Understand if HR initiatives are working

● Make informed HR decisions to recruit and retain the best staff

● Spend our HR dollars wiser


Join the conversationWithout HR Data, We Tend To....


● Hire and fire spontaneously

● Be reactionary

● Not have an intentional recruiting and retention strategies

● Spend our HR dollars “on the fly”

● Become less of a business priority because we cannot quantify our work

>> Make Less Educated Decisions <<


5 HR Data Points to Track





Join the conversation

1. Employee Retention Rate

2. Cost of Employee Turnover

3. Current and Historical Compensation Data

4. Recruiting and Retention Expenses

5. Training and Onboarding Expenses

Bonus - Employee Happiness

5 HR Data Points to Track



#1: Employee Retention Rate





Join the conversation#1: Employee Retention Rate

Why do you need to track this?

Employee turnover is expensive to your operating budget, and to morale. It helps you

answer, “Is our employer retention strategy working?”




# of employees who left during a period of time

Total # of employees at the end of a period of time( )Retention Rate =




For example:

Sample Inputs Sample Calculation

(a) Period of Time: Fourth Quarter

(b) Total Employees at Beginning of Q4: 24

(c) Total Terminated Employees in Q4: 4

24 - 4 = 20 (b) – (c) = (d)

20 / 24 = .83 (d) / (b) = (x)

.83 x 100 = 83% (x) x 100 = Rate

Standard retention rates are 70-

85%, but vary by industry and

calculation methodwww.ZaneBenefits.com



● Understand current employee turnover, and as a trend

● Measure if employee retention strategies are working (ex: perks, health

benefits)

● Identify red flags with morale

Now, what can you do with this data?



#2: Cost of Employee Turnover





Join the conversation#2: Cost of Employee Turnover


To make more strategic decisions about benefits and retention

activities.




Lost Productivity

Lost Engagement

Hiring and Recruiting Costs

Orientation and Training Costs

Cultural Impact

Total Cost of Turnover (Per Employee)




Pay Scale >> <$30,000/year $30,000 -$75,000/year

$75,000 +

Replacement

Cost Rate (%)

16%of annual

salary

20%of annual salary

Up to 213%of annual

salary

* Source - Center for American Progress Study on employee turnover

Example employee turnover rates *




Example Calculation - Cost of Turnover by Role

Time Period(ex: Q4 2013)

Position 1Ex: $10/hr retail

Position 2Ex: $40k/year manager

Position 3Ex: $100k/year Director

# of Terminated Employees (EEs) by Role

3 EEs 1 EEs 0 EEs

Cost per Employee $3,328 (16% salary) $8,000 (20% salary) $213,000

Cost of Turnover by Role $9,984 ($3,328 x3) $8,000 $0

Total Cost of Turnover this Time Period

$17,984 (Tip - By offering health benefits or perks, this company could lower their turnover cost and measure ROI on those benefits)





● Understand the cost of employee turnover

● Calculate the impact of health benefits and perks (often, they will pay for

themselves)

● Tailor your benefits and perks to retain the expensive-to-replace

employees



#3: Compensation Data





Join the conversation#3: Current and Historical Compensation Data


To record and track minimum wage and overtime pay compliance.

And, it helps you understand employee growth (important for retention).




Tip: You can simply track this data in a spreadsheet, or use HR Software.




● Check the accuracy/fairness of wages across your organization

● Track average wage increases

● Establish baseline compensation for various positions

● Be aware of annual points for possible wage increases




#4: Training and Onboarding Expenses





Join the conversation#4: Training & Onboarding Expenses


Understand your hiring costs for budgeting.





Personnel Time

Training Materials/Supplies

Meeting Space

Social Activities

Total Cost of Training & Onboarding




● Understand the true cost to hire and train employees

● Make strategic decisions about hiring (ex: hire a class of employees

together to be more cost-efficient)

● Measure the impact on hiring and onboarding expenses (ex: do your

training costs lower the cost of employee turnover?)



#5: Recruiting Expenses





Join the conversation#5: Recruiting Expenses


Understand your recruiting costs for budgeting.





Advertising

Recruiting Software

Networking

Personnel Time (Screen, Interview, etc.)

Total Cost of Recruiting



● Yield Ratio (percentage of hires by recruitment source)

○ # of candidates by source ÷ by total # candidates

● Allocate your recruiting dollars only to what’s working

● Understand your true cost of employee turnover




Bonus Calculation: Employee Happiness





Join the conversationBonus Calculation: Employee Happiness


Gain a pulse on employee satisfaction and happiness. Forecast future turnover.



Join the conversationBonus Calculation: Employee Happiness

Example - A Simple Employee Survey

● A simple monthly survey (ex: printed, a free online survey software, google forms, or a third-party

software).

● Keep it simple - a few targeting questions about happiness, culture, growth, pay, advancement, etc.

(the metrics that matter to your business!)

● Track results monthly



Conclusion





Join the conversationConclusion

1. HR data drives smart HR decisions, leading to happier employees

2. HR Software can help you collect the data you need, but it’s not necessary

3. Simple, consistent data point provides valuable insights



Q&A


Zane Benefits 800-391-9209 | zanebenefits.com

[email protected]

Christina MerharZane Benefits




Join the conversationAdditional HR Resources

Additional FREE Resources: Small Business Human Resources

View all of our free eBooks, Whitepapers, and On-Demand Webinars at: ZaneBenefits.com/Resources

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http://www.zanebenefits.com/resources/

http://offers.zanebenefits.com/the-small-business-guide-to-human-resources

http://offers.zanebenefits.com/greatest-tips-for-recruiting-and-retention

http://offers.zanebenefits.com/how-to-navigate-health-insurance

Join the conversationWhat is Zane Benefits?

Zane Benefits is the leader in individual health insurance reimbursement for small businesses. Since 2006, Zane Benefits has been on a mission to bring the benefits of individual health insurance to business owners and their employees.

Zane Benefits' software helps businesses reimburse employees for individual health insurance plans for annual savings of 20 to 60 percent compared with traditional employer-provided health insurance. Today, over 20,000 customers use Zane Benefits' software, services, and support to reimburse individual health insurance plans purchased independent of employment.

Zane Benefits' software has been featured on the front-page of The Wall Street Journal, the USA Today, and The New York Times. Zane Benefits was founded in 2006 and is based in Salt Lake City, Utah.

DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state.www.ZaneBenefits.com



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