Amanda Chua, Author at Omni HR

Employees are the heart and soul of your organization. It’s important to hire the right people and manage your workforce effectively, which is where human capital management comes in.

In this guide, we will be exploring the key components that make up the HCM system and help you find the perfect HCM software to optimize employee productivity and growth.

What is Human Capital Management?

Human capital management (HCM) is a set of business practices used to recruit, manage, and empower an organization’s workers. It streamlines operations in HR workflows and adopts strategies that enhance productivity, support team goals, and optimize the value of a company’s human resources.

HCM goes beyond the traditional administrative tasks of HR teams, such as recruiting, onboarding, payroll, and others. It also includes other strategic activities like employee engagement, talent development, performance management, and wellbeing programs.

When done right, human capital management brings about high quality hires, skilled workforce, engaged employees, and increased productivity.

Furthermore, human capital management software helps organize and sift through data. This is necessary as today’s workforce has become dynamic, featuring HRIS and Artificial Intelligence (AI) that automates HR workflows and routine tasks. This opens up new opportunities for team collaboration and allows you to gain real-time insights into your staff.

Read next: The Difference Between HRIS vs HRMS

What are the key components of HCM systems?

As mentioned, HCM systems revolve around the wellbeing of employees and helping them achieve their maximum potential. Hence, the key components of human capital management are centered around various activities across the employee lifecycle.

Talent acquisition

HCM software addresses challenges encountered while recruiting, hiring, and onboarding new employees while monitoring recruitment KPIs. By adopting HCM systems, you easily identify the skills and qualifications needed for specific roles and attract qualified candidates to your organization.

Onboarding

Managing human capital also involves introducing new hires to your company’s culture and processes. This works by enlightening them about their job expectations and building a healthy environment where new hires can transition smoothly and thrive.

Additional resources: The Comprehensive 30-60-90 Day Plan Template

Performance management

This component of HCM systems aims to ensure that each employee’s performance aligns with business objectives. It involves goal-setting, regularly evaluating performance, providing continuous feedback, and adopting improvement strategies. Its goal is to optimize performance so the company yields returns from its recruitment efforts.

By aligning your employee’s activities with organizational goals, performance management can propel workers to success.

Relevant reading: The Role of AI Tools for Performance Management

Training and development

HCM software also nurtures workers to develop new skills that improve their performance and help them meet job expectations. This is done through regular training, such as financial education, professional workshops, 1-on-1 meetings with industry experts, seminars, webinars, coaching, career planning, and other employee development programs.

Compensation and benefits

This HCM software component offers in-depth insight into the compensation and benefits employees gain from working with your organization. It covers salaries, bonuses, health benefits, retirement plans, and other non-financial rewards like fringe benefits. Its goal is to ensure your company’s compensation stays competitive per industry standards and adapts to your business needs.

By using HCM software, you simplify managing your workforce benefits and make necessary deductions without any hassle.

Employee relations

Human capital management software also supports building positive relationships among employers and employees. It involves initiatives such as employee engagement and recognition, work-life balance, financial wellness and more. This helps to define a positive workplace culture that fosters a sense of community within an organization and promotes employee satisfaction and retention.

HR analytics

HCM systems also involve collecting, analyzing, and interpreting human capital data in your organization. The goal is to ensure HR teams make data-driven decisions that improve results and highlight the impact of human resource practices.

As a component of HCM software, HR analytics also helps track progress and forecast trends. It covers all employee and company data, including recruitment, retention, skill development, productivity, and more.

Read next: Intro to HR Analytics and Leveraging HR Data

How can human capital management benefit your team?

Let’s face it—managing HR tasks and keeping up with industry trends while complying with labor laws can be overwhelming.

But it’s not all doom and gloom. After all, human capital management software offers many perks that outweigh the stress involved. So, if you’re wondering why you should invest in one, here are some benefits of using HCM systems:

Increase productivity

McKinsey revealed that more than 50% of employees report being unproductive at work. Per the survey, workers’ level of productivity is linked to employee satisfaction. That is, the higher the satisfaction and commitment employees experience, the higher their self-reported performance and well-being.

HCM systems can increase productivity by enhancing employee performance towards your company’s goals. For example, through performance management, HCM allows you to assess employees, address their concerns, acknowledge their efforts, and offer solutions to their work problems. In return, you get productive employees that advance your organization’s objectives.

Boost employee morale

Employees need that extra push to go the extra mile, and this can be done through the use of human capital management software. For instance, insights from HCM systems can help you offer quality feedback for employees, competitive salaries, and recognizing high-performing employees. With these initiatives, employees will feel motivated and engaged to perform better.

To prove this, Nectar reports that 84% of employees believe recognition boosts their motivation to succeed. The reason isn’t far-fetched—HCM systems ensure employees feel appreciated and are encouraged to reach their full potential.

Lower employee turnover

Because HCM systems enhance employee engagement, boost job satisfaction, and increase productivity, businesses can grow while lowering employee turnover and reducing attrition rates. Ultimately, HCM software increases worker retention. And consequently, it gives potential hires the impression that your company must be doing something right for employees to stay longer with you.

Additional reading: How to Use Data to Better Understand Attrition and Retention

Gain competitive advantage

By adopting HCM software, it signals to employees that you value not just their work performance, but also their overall wellbeing and career development. In return, employees satisfied and engaged with their work become brand ambassadors, eager to contribute to your company’s success, and promote your organization to others.

Top 3 HCM Systems

Now that you understand what human capital management entails, here are three HCM softwares that can help you build a high performing workforce:

Omni

Omni is an all-in-one HCM software that helps you leverage automation and streamline your human resource processes. As a human capital management software, Omni offers actionable insights for continuous improvement and team effectiveness. With Omni, you need not work with multiple HR tools as it seamlessly integrates with other platforms you often use, plugging into your team’s favorite tools so you don’t miss a crucial moment.

Omni’s performance management lets you monitor review cycles, deliver tailored performance appraisals, and automate reminders to complete the review process smoothly. It also has customizable goal-tracking templates that help managers oversee performance evaluations, track employee submissions, and get data-driven insights that fuel business decisions in one centralized platform.

Also, during talent acquisition, Omni provides HR teams and managers access to custom reports on recruitment KPIs in the hiring process. This ensures you address possible bottlenecks and drive company success.

Workday

Workday is a cloud-based enterprise management system that integrates finance, human resources, industry operations, and planning into one platform. It gives businesses real-time data-driven insights that enable them to make informed decisions. Furthermore, this HCM software also offers AI-driven tools and continuous innovation that support companies in automating their processes, improving efficiency, and adapting to evolving business needs.

Workday offers different benefits, from financial management to human capital management, expense management, and enterprise planning. By doing so, this HR tool helps companies effectively manage their operations amid the changing work environment.

Whether managing payroll, hiring talent, or organizing compensations and benefits, Workday simplifies complex HR tasks and gives you the tools to stay afloat in a competitive market.

BambooHR

BambooHR is a human capital management software that assists with payroll, hiring and onboarding, HR data and reporting, and employee experience and performance.

Furthermore, this HCM software helps you find, hire, and onboard the best candidates in your industry. With its applicant tracking system and proactive onboarding tasks, you can create a captivating candidate experience and smooth first days for new hires.

BambooHR also provides tools that help you listen to employees and invest in their development by gathering feedback, strengthening employee satisfaction, and growing your team.

Building a High-Performance Workforce with Omni

By evaluating your business needs, researching and trying out different solutions, finding the perfect human capital management software for your business needs does not have to be intimidating. Affordable, functional, and suitable for modern businesses — Omni is an HR software that HR teams can count on.

With Omni, you gain access to data-driven insights that empower informed decision-making, as well as seamless integrations that effortlessly connect with your existing employee favored systems, making your entire engagement process more efficient and modern.

Our full suite of modules provide support for every aspect of your business through an intuitive and fully customizable platform that integrates with your team’s favorite tools for a seamless and timely adoption.

Powering Asia’s fastest-growing, modern companies, Omni scales alongside your company so you can customize and leverage the system to meet your business exactly where you are — as well as where you’re going.

To join the 83% of Omni customers who have unlocked new, actionable insights after using our modern HR software solution,

book your product tour today!

When it comes to measuring company performance, OKRs and KPIs are both popular approaches. But what’s the difference between them? In this article, we will explore the concept of OKR vs KPI and see how they can be implemented in your organization to drive success.

What is an OKR?

OKR stands for Objectives and Key Results. It is a goal-setting framework used to define and track objectives and their outcomes. The framework is designed to help businesses establish ambitious goals in a short period of time.

OKR is made up of 2 parts: objectives and key results. Objectives are what you want to achieve while Key Results are how you will reach your achievement. Each objective should have 2-5 key results, and each key result should include a number (something to measure).

Unlike KPIs, OKRs are considered leading indicators as they are related to goals or impacts that you are striving to achieve.

For example, a tech company may set an objective to “Increase user engagement for its mobile app by 25% within the next quarter.” Key results may include “Increasing daily active users by 20%” and “Reducing app uninstall rate by 10%.”

Read next: OKRs for HR: Samples and Guide

What is a KPI?

Key Performance Indicator (KPI) is a business measurement that demonstrates the current health of an organization’s performance. KPIs are often used to evaluate the performance of projects, products, or employee’s performance. You can think of KPI as a lagging indicator as they show you how your business has been performing in previous periods.

While KPIs are great for measuring performance, they are often standalone. They may tell you when a measure is good or bad, but they don’t necessarily provide context or the direction your team can take next. For example, a retail company might include total sales revenue as its KPI, which can provide valuable insights into the business’s overall performance. However, the KPI alone doesn’t tell the complete story.

OKR vs KPI

While OKRs and KPIs are both used as a measure for performance and success, there are some major differences. Here’s a breakdown of OKR vs KPI:

Purpose

The first difference between OKR vs KPI is its purpose.

When it comes to setting OKRs, set ambitious, overarching goals that align with your company mission and business goals. For example, a tech company might set an OKR to “Increase market share by 20% within the next year.”

For KPI, the purpose is to quantify performance against specific metrics, making it an effective way to track progress towards your OKRs. To illustrate, to achieve the above OKR, the tech company might use KPIs such as “Increase website traffic by 15%” or “Improve customer satisfaction by 10%.” These KPIs are concrete examples of how the team is progressing towards achieving its goals.

Scope

Another difference between OKR vs KPI is its scope.

OKRs are often broad and strategic, focusing on the overall organization or team objectives. For example, an F&B company might set an OKR to “Become the leading sustainable F&B brand in the region within the next five years.”

Contrastingly, KPIs are narrow and tactical, focusing on specific metrics or activities. For example, the same F&B company might set KPIs such as “Reduce carbon footprint by 30%”, “Source 80% of ingredients locally” or “Open three new sustainable locations.” These KPIs create measurable steps towards achieving the larger strategic goal, motivating employees in the process.

Time frame

When thinking about OKR vs KPI, a distinct difference is its time frame.

Typically, OKRs are set on a quarterly or semi-annual basis. It also provides a clear time frame for goal achievement. For instance, a marketing team might set an OKR of “Launch a new product line by the end of the quarter.” In this case, employees are aware of the goal and when it needs to be achieved.

As for KPIs, it can be set weekly, monthly, quarterly, or annually, depending on the metric and its importance. The time frame in this case is not as rigid. To illustrate, a customer service team might track weekly customer satisfaction scores to identify trends and areas for improvement.

Flexibility

OKRs tend to be more flexible and can be adjusted as goals evolve. This is especially critical for businesses in a volatile industry. Namely, if a company faces unexpected challenges such as economic downturns, natural disasters or changes in company structure, they can adjust their OKRs accordingly.

KPI on the other hand, is less flexible and often requires consistent tracking and measurement. However, KPIs can easily be adjusted or removed if they are no longer relevant and effective to the current business situation.

Motivation

Last but not least, the difference between OKR vs KPI is its motive.

OKRs aim to inspire and challenge employees by setting challenging and ambitious goals. By setting stretch goals, OKRs can be a great way to motivate employees to work harder and smarter, fostering a positive workplace culture.

Over to KPIs, they provide a clear and measurable performance benchmark to track progress and accountability. When employees are able to see their progress towards KPIs, it can be a great source of motivation and empowerment.

OKR vs KPI FAQs

1. Can OKRs replace KPIs?

By now, you should be clear on the distinction between OKR vs KPIs. In fact, you might be wondering which is more important or suitable for your organization. The truth is, OKRs and KPIs are complementary to each other.

While OKRs provide a strategic direction for the organization, KPIs help measure the progress towards those goals. Both these approaches work together efficiently to ensure that every individual within the organization is aligned and focused on achieving its company objectives.

Additional reading: 6 Step OKR Implementation Guide

2. How to effectively combine OKRs and KPIs?

Here are four effective steps to combine both approaches:

Start off by setting ambitious, challenging but achievable OKRs that align with your company’s vision and strategy.
Next, identify the key metrics or KPIs that can help you measure your accomplishments as you progress towards your OKRs.
Ensure that your KPIs are directly aligned with your OKRs.
As you monitor your progress towards OKRs and KPIs, make adjustments as needed to ensure they stay relevant and effective.

3. What are some common mistakes for OKR vs KPI?

It might seem like a daunting task if you are setting OKR and KPIs for the first time. But by taking note of these common mistakes, you’ll be well on your way to effective goal setting and performance tracking.

Setting too many OKRs: Overwhelming your team with too many OKRs can lead to a lack of focus and reduced productivity. Not to mention, employees who are juggling too much could end up burning out.
Using vague or unmeasurable KPIs: Unclear KPIs may confuse your team, leading to wasted time and effort. Ensure that your KPIs are specific, measurable, achievable, relevant, and time-bound (SMART).
Misalignment between OKR and KPI: As mentioned above, it’s important to establish KPIs that directly support your OKRs to avoid misalignment.
Failing to review and adjust: Change is inevitable, hence, regularly review your OKRs and KPIs to ensure that they remain relevant and effective.

Read next: How to Write Effective OKRs: The Ultimate Guide for 2024

4. What are the best practices for OKR vs KPI?

To make the most out of your goal setting, involve your entire team from the start.Gather input from all team members to ensure buy-in and alignment. This can be done through brainstorm sessions, performance reviews, and 1-on-1 meetings.

Keep goals simple and easy to understand. Avoid overly complex OKRs and KPIs that are difficult to understand or track. This ensures that employees are aware of the bigger picture as well as the pivotal role they play. Adopting OKR management tools and software can help you automate the process, making it easier to track your progress.

Recognizing and rewarding team members for their accomplishments is pivotal. This signals to employees that their hard work is valued, leading to boosted satisfaction and employee engagement.

5. How often should OKR vs KPI be reviewed?

For OKRs, a rule of thumb is to review quarterly or semi-annually. This allows you to perform timely adjustments based on changing circumstances.

As for KPIs, it can be reviewed more frequently, depending on the specific metric and its importance. For example, weekly or monthly reviews may be necessary for critical KPIs.

Balancing OKRs and KPIs for Business Success

By effectively implementing OKRs and KPIs, you can create a powerful framework for setting and achieving even the most ambitious goals.

Knowing how to set OKRs and KPIs for employees requires strategic input and consideration from managers, however the tracking and gathering of data can become yet another time-consuming administrative task. Omni helps you track, analyze and gain actionable insights from performance data through an automated and digitized platform. Easily and quickly gather the data you need so you can spend more time on the strategic planning necessary to drive business outcomes.

To learn more about how Omni can automate and improve your goal setting practices,

book your demo with our team today.

Big companies have big opportunities but also, big challenges. At a global scale, your organization is able to tap into different markets, recruit from diverse talent pools, and ultimately reach more people. To do so, it needs to juggle a complex set of global HR compliance responsibilities, and it is often easier said than done.

Global HR compliance is absolutely essential for maintaining a company that abides by shifting and varied regulations that cover everything from fringe benefits and time off to work hours and minimum wage. Having dedicated oversight that routinely checks in on your global workforce is a major part of HR compliance success.

In this article, we’re going to walk you through everything you need to know about global HR compliance responsibilities, including pitfalls to avoid, best practices, and why a robust framework is worth your time.

What is global HR compliance?

A company with a global reach is a good thing to have, and expanding into new markets is an exciting opportunity for growth. But with that excitement comes a whole new layer of complexity—global HR compliance.

Human Resource compliance is the rulebook for managing your international workforce. It involves understanding and adhering to the employment laws, regulations, and cultural norms in each country where you operate. It’s more than ticking boxes on a checklist— global HR compliance is about creating a fair, safe, and inclusive workplace for your employees across the globe.

In a nutshell, here’s why it matters:

Protecting your business: Non-compliance can lead to hefty fines, lawsuits, and damage to your company’s reputation.
Protecting your employees: Ensuring your employees are treated fairly and in accordance with local laws is not only ethical but also essential for attracting and retaining top talent.
Streamlining operations: A well-defined global HR compliance strategy can help you standardize processes, reduce risk, and create a more efficient global workforce.
Building a positive employer brand: Demonstrating your commitment to compliance shows potential employees that you value their well-being and are a responsible global employer.

What are some common HR compliance issues?

Even with the best intentions, navigating global Human Resource compliance can be tricky. Here are some common areas your organization is going to want to look out for:

Discrimination

Understanding local laws: Each country has its own anti-discrimination laws, covering protected characteristics like race, gender, age, religion, and disability. It’s essential to understand these nuances to ensure fair treatment of all employees.

Equal pay for equal work: Compensating employees fairly based on their skills and experience, regardless of their background, is crucial for compliance and employee morale.

Read next: The Pay Parity Guide for HR

Wage & work hours

Minimum wage compliance: Ensure you’re paying your employees at or above the minimum wage set by the local laws. This varies significantly from country to country, so make sure you’re up to date on the latest regulations.

Overtime regulations: Different countries have different rules about overtime pay, maximum working hours, and mandatory rest breaks. Make sure your organization’s practices align with local regulations.

Leave management

Paid time off (PTO): Understand the legal requirements for paid leave in each country, including annual leave, sick leave, maternity/paternity leave, and public holidays.

Leave documentation: Keep accurate records of employee leave requests and usage to ensure compliance and avoid disputes.

Read next: HR’s Guide to Employee Leave Management

Work safety

Health and safety standards: Every country has regulations to protect workers’ health and safety. Make sure your workplaces meet these standards and that employees are trained on safety procedures.

Reporting and documentation: Properly document workplace incidents and injuries to comply with reporting requirements and protect your company from liability.

Relevant reading: Singapore’s Workplace Safety and Health Act Guide

Employee benefits administration

Mandatory benefits: Some countries have mandatory employee benefits, such as health insurance or pension contributions. Make sure you’re providing these benefits in accordance with local laws.

Voluntary benefits: Even voluntary benefits can have compliance implications. Check that your benefits plans comply with tax laws and other regulations.

These are just a few examples of common HR compliance issues, but you can see the value in thoroughly understanding the regulations of each country your organization operates in. By being aware of these potential pitfalls and proactively addressing them, you can protect your business, your employees, and your reputation.

Why is global HR compliance important?

A robust compliance strategy can be a major asset to your organization, adding to its success in many different ways. These include:

Avoid legal and financial risks

Lawsuits and penalties: Non-compliance can result in costly lawsuits, hefty fines, and other legal actions. These financial burdens can significantly impact your bottom line.
Business disruption: Legal battles and investigations can divert valuable time and resources away from your core business operations, causing delays and disruptions.
Reputational damage: Negative publicity surrounding legal issues can tarnish your organization’s image, making it harder to attract and retain talent.

Boost employee morale

Fair and equitable treatment: When employees know their rights are protected and they’re being treated fairly, it creates a positive work environment and boosts morale.
Increased engagement: Employees who feel valued and supported are more likely to be engaged in their work, leading to increased productivity and innovation.
Attracting top talent: A reputation for strong Human Resource compliance can make your company a more attractive employer, helping you recruit the best candidates.

Maintain positive brand reputation

Consumer trust: Customers are increasingly conscious of ethical business practices. Demonstrating your organization’s commitment to fair labor practices and compliance will strengthen your brand image and build trust with consumers.
Investor confidence: Investors are more likely to support companies with a strong track record of compliance, as it reduces risk and demonstrates responsible business practices.
Competitive advantage: A positive brand reputation can set you apart from your competitors, making it easier to attract customers, partners, and investors.

Ensure smooth global operations

Standardized processes: A centralized global HR compliance strategy can help you standardize HR processes across all your locations, making it easier to manage your workforce and ensure consistency.
Reduced complexity: By understanding and proactively addressing compliance requirements, you can simplify global HR operations and avoid costly mistakes.
Efficient expansion: When you’re confident in your compliance practices, expanding into new markets becomes less risky and more streamlined.

Sticking to your HR compliance responsibilities helps build a strong foundation for your organization’s long-term success. By prioritizing compliance, you can create a more positive workplace, enhance your reputation, and ensure smooth global operations.

What are an employer’s HR compliance responsibilities?

As an employer, ensuring HR compliance isn’t just a legal necessity; it’s a core part of building a successful and ethical business. Here’s what you need to keep on your radar:

1. Keep track of the compliance obligations

Familiarize yourself with all applicable labor laws, regulations, and industry standards. This includes everything from minimum wage and overtime rules to anti-discrimination laws and data protection regulations.

Laws and regulations change over time, so it’s important to stay up-to-date with the latest developments. Subscribe to newsletters, attend industry events, and consult with legal experts to ensure you’re always in the know.

2. Divide compliance responsibilities within HR departments

Clearly define who is responsible for each aspect of Human Resource compliance. This could include specific individuals or teams dedicated to areas like payroll processes, benefits administration, or employee relations.

Also, consider establishing a dedicated compliance team to oversee and manage all aspects of HR compliance. This team can develop policies, conduct audits, and provide training to ensure everyone is on the same page.

3. Stay up-to-date with relevant legal changes

Actively monitor changes in labor laws, regulations, and court rulings that could impact your HR practices. Regularly review your global HR compliance policies and procedures to ensure they are aligned with the latest legal requirements. Communicate any changes to your employees to maintain transparency and avoid misunderstandings.

4. Audit your HR policies

Conduct periodic audits of your global HR compliance policies and practices to identify any areas of non-compliance. This can be done internally or with the help of external auditors.

If you discover any issues during an audit, take immediate corrective action to address them. This could involve updating policies, retraining employees, or revising procedures.

5. Maintain accurate records

Keep detailed records of employee information, payroll data, leave requests, performance reviews, and any other relevant HR documentation. This will help you demonstrate compliance in case of any disputes or audits.

Make sure your HR records are stored securely, both physically and electronically, to protect sensitive employee data.

Read next: Employee Data Management: How HRIS Can Help Achieve Accuracy and Security

6. Educate managers and employees

Provide regular training to your managers and employees on HR policies, procedures, and legal requirements. This will help create a company culture of compliance and reduce the risk of unintentional violations.

Encourage open communication and dialogue between managers and employees about HR issues. This can help identify potential problems early on and prevent them from escalating into bigger issues.

7. Utilize HR technology

Leverage HR technology, such as HRIS systems and compliance software, to automate tasks, streamline processes, and improve record-keeping. These tools can help you stay organized and efficient while reducing the risk of human error.

By following these steps, you can create a comprehensive global HR compliance program that protects your business, your employees, and your reputation. Remember, compliance is an ongoing effort, so be sure to regularly review and update your policies and practices to stay ahead of the curve.

Building a Sustainable Global Workforce with Omni

While global HR compliance is crucial for avoiding legal issues, it is even more fulfilling to prioritize compliance for the well-being of your employees. Make it your goal to enhance their working conditions, leading to increased job satisfaction and employee engagement.

Adding purpose into tasks that may seem mundane or bureaucratic motivates you to strive for excellence, achieving better HR compliance in the process. Although this may look like additional effort, a reliable HR software solution takes on the bulk of the workload, allowing you to focus on advancing your mission.

Omni scales alongside your team so you can customize and leverage the system to meet your business exactly where you are—as well as where you’re going.

With a full suite of modules to support every aspect of your business, Omni’s platform offers an intuitive and fully customizable platform that integrates with your team’s favorite tools for a seamless and timely adoption.

If you’d like to learn more about how Omni’s all-in-one HR software automates the entire end-to-end employee lifecycle, saving People leaders from administrative tasks and increasing organizational innovation, schedule your product tour today!

As an HR professional or recruitment manager, you’re no stranger to the hiring process. However, hiring qualified candidates requires more than the basic processes, but a strategy that yields desired results. Here’s where recruitment KPIs come in.

Recruiting KPIs streamline the hiring process and suggest ways to improve your recruitment efforts. In this article, we’ll be diving into the ins and outs of talent acquisition KPIs, examples of key metrics to measure and how you can start setting effective recruitment KPIs for your organization.

What are recruitment KPIs?

Recruitment KPIs (Key Performance Indicators) are metrics HR professionals and hiring managers use to track and measure the effectiveness of their company’s recruitment process.

These metrics indicate your company’s goals and provide insight into how the organization attracts, screens applicants, and hires talents. They also reveal areas for continuous improvement, highlight hiring ROI, and the steps to follow to meet organizational objectives.

Talent acquisition KPIs are usually presented as percentages, single figures, or ratios to ensure clarity within HR teams. While they may look like ordinary numbers on the surface, they’re more than that. They’re effective pointers that provide vital insights into the strengths and weaknesses of your talent acquisition strategy.

For example, say one of your goals is to make the recruitment process faster and candidate-friendly. One of the recruiting KPIs to track is time-to-hire. This will measure how long it takes a successful candidate to complete the application and become a new hire.

Relevant reading: 18 Strategic HR Metrics to Measure for Success

Why are recruitment KPIs important?

Your organization may have the best recruiting strategy that outperforms competitors. But if you’re not measuring and monitoring your hiring initiatives, your strategy will not be effective.

The right recruiting KPIs are a valuable tool for attracting and retaining top talent efficiently. They’re crucial to human resources success as they help to:

Track your progress

Recruiting KPIs help you monitor the progress of your hiring strategy by offering measurable metrics into the entire process. They spot lapses during talent acquisition and identify strengths you should optimize. They also compare current performance with historical data while considering industry benchmarks.

Read next: What is Benchmarking in HR?

Make better decisions

By analyzing recruiting KPIs, organizations access data-driven insights that guide them in making informed decisions.

For instance, recruitment KPIs like source of hire and cost-per-hire indicate which sourcing channels give the best results and how much resources they consume. By evaluating them, you can decide to continue with a particular channel or consider alternative platforms that source qualified candidates.

Benchmarking

Recruitment KPIs let you compare your company’s current recruitment performance with past ones and industry standards. This helps to identify trends, adjust where necessary, set SMART goals, and understand how your organization competes in your industry.

For instance, through benchmarking, you may adjust your company’s hiring processes to ensure fringe benefits and job scope align with candidates’ expectations and competitor brands in your industry. By doing this, your company remains relevant in its line of business and becomes more attractive to top talents.

Demonstrate ROI

Talent acquisition KPIs provide HR teams with concrete data that prove the effectiveness of recruitment strategies to senior leadership. They help determine if the money spent on hiring achieves its goals or not by comparing recruiting costs with the financial value the hires add to the company.

This helps to justify expenses incurred during hiring, reduce costs, and secure additional funding when needed.

Relevant reading: HRIS ROI Calculator: Does Investing in HRIS Pay Off?

Quantitative vs Qualitative Recruiting KPIs

Talent acquisition KPIs generally consist of two types: quantitative and qualitative.

Quantitative recruitment KPIs are metrics that can be measured numerically. They tell you how many, how fast, how often, etc. Their goal is to help you assess the short term efficiency of your hiring process and spot areas for improvement.

Examples include cost per hire, source of hire, time to fill, etc. They’re objective and easy to measure and interpret, especially as they’re often obtained from the hard numbers and accurate data found in the process.

On the other hand, qualitative recruitment KPIs focus on how things turned out. They’re often retrieved through surveys or interview questions. They tell you how well, engaging, or satisfactory the recruitment process went. Tracking these recruiting KPIs helps you easily evaluate the impact of your recruiting strategy and understand candidates’ and employees’ needs, preferences, and motivations.

Some examples include quality of hire, hiring manager satisfaction, cultural fit, candidate experience, and retention rate. However, it’s notable that qualitative talent acquisition KPIs could be subjected to unconscious bias, and may be challenging to track and measure.

Top 10 Recruitment KPIs You Need to Consider

Here are the top talent acquisition KPIs you should track in your organization to measure recruitment performance:

1. Cost per hire

This recruiting KPI assesses how much money the company spends on hiring one employee. It covers every cost related to job ads, employee training, onboarding, screening interviews, background checks, etc.

According to SHRM’s HR benchmarking data, the average cost per hire was almost $4,700.

By analyzing this metric, you optimize the hiring process while reducing recruitment costs. For instance, if the cost-per-hire is high, it may mean it’s time to consider cheaper sourcing channels or re-evaluate the job requirements.

Read Next: Recruitment Fees Explained—Types of Structures You Can Expect

2. Source quality

If your company sources candidates from different job sites or recruitment agencies, measure the effectiveness of each channel.

This recruiting KPI allows you to identify the quality of applicants each source brings. It also checks for the channels that are just garnering impressions without applicants. This ensures you don’t waste money on sourcing channels that aren’t working for you and instead invest more time and money on effective ones.

An easy way to judge the source quality is to compare the percentage of applications with the percentage of impressions of the job postings.

3. Number of qualified candidates per opening

These recruitment KPIs provide insight into how effective your hiring efforts are at attracting qualified candidates and moving them through your recruitment pipeline. Usually, qualified candidates are the number of applicants who go past the first hiring stage because they meet the required criteria.

If your recruitment pipeline lacks qualified candidates, it could be due to wrong sourcing channels or unattractive job descriptions. Hence, the need to track this metric.

4. Application completion rate

According to Zippia’s research, 60% of candidates will quit while applying for a job online due to a lengthy or complex application form. However, measuring application completion rate can help you detect issues early on to avoid losing out on talents.

It calculates the percentage of applicants who started and completed the application process. For example, if 200 candidates began filling out applications but only 120 submitted them, the Application Completion Rate would be 120/ 200 x 100 = 60%.

5. Interview to hire ratio

This is the ratio between the number of interviews conducted and new hires made within a specific period. It helps you know how many people you need to interview to make an offer to one candidate.

Interviews are time-consuming and expensive. If your interview-to-hire ratio is high, it’ll result in higher costs per hire, which means more expenses for your company.

6. Time to hire

This KPI measures the time it takes to hire a qualified talent. It counts from the day the recruiter opens a position to the day it is finally filled.

It’s better to keep your time-to-hire as short as possible. The faster an applicant accepts your offer, the lower your recruitment costs and the higher your talent quality. A long time to hire indicates a long application process. This can be because your job postings aren’t targeting qualified candidates or your recruiting pipeline needs more streamlining.

7. Offer acceptance rate

This KPI indicates how many candidates decide to join your company after getting an offer. It lets you know what prospective employees expect and the terms of employment that convince them to get on board. For instance, applicants who reject an offer may do so because of bad employer branding, a stressful recruiting process, or unattractive compensation.

Additional reading: What to Include in an Employment Contract

8. Candidate net promoter score (NPS)

This refers to how likely applicants are to recommend your company to others based on their experience of your hiring process.

A high NPS differentiates you from your competitors by highlighting candidates’ experience and enhancing your company’s reputation. Ultimately, it positions your organization as one of the top employment choices in your industry.

9. First-year turnover rate

This metric measures the number of employees who quit before completing a full year in your organization. A high turnover rate indicates employee dissatisfaction, poor company culture fit, or workers have probably found a better job.

The higher your turnover rate is, the higher your company spends on hiring. Monitor this KPI and improve your company’s processes so every dime invested in recruitment yields returns.

Learn more: How to Use Data to Better Understand Attrition and Retention

10. Quality of hire

This recruiting KPI helps you understand how effective your team is in recruiting suitable candidates to fill a role. It examines how a new hire fits into a company and contributes to its success within a specific time. It also evaluates such candidate’s performance and draws conclusions about the efficiency of the recruitment process to suit the company’s needs.

Tips for Setting Effective Recruitment KPIs

Define your business goals

Don’t just set recruitment KPIs; ensure they align with your organization’s business goals. For example, if one of the company’s goals is to reduce recruitment costs, monitor metrics like cost per hire to help the business save money while hiring top talent.

Note that these recruiting KPIs will change as your company grows and its business objectives change.

Identify relevant and SMART KPIs

Good talent acquisition KPIs should be specific, measurable, attainable, relevant, and time-bound (SMART). For instance, instead of simply setting sourcing channel effectiveness as part of your recruitment KPIs, make it SMART by specifying, “Optimize sourcing channel quality by 50% within the next 12 months.”

This ensures clarity, gives each goal a timeframe for achievement, and makes it easy to track while ensuring they’re realistic and relevant to your organization.

Gather baseline data

Before implementation, establish and record values for your recruiting KPIs. The baseline data should also include relevant information such as timeframes, budget, and objectives of each task. This will serve as a benchmark for tracking progress and assessing the impact of hiring strategies.

Choose appropriate data collection tools

Use HR software and analytics tools to collect data and monitor hiring metrics regularly. This will ease and automate the recruitment workflow for easy analysis and implementation.

Analyze and improve

Examine the reports on recruitment KPIs to identify lapses and improve where necessary. This helps you generate ROI from hiring efforts by making the most of results, whether negative or positive.

Optimize Your Hiring Process with Omni

Recruitment KPIs play a crucial role in modern businesses by providing valuable insights for decision-making and driving continuous improvement on recruitment processes and strategies.

By comparing talent acquisition KPIs against industry standards or competitors, businesses can identify areas of growth and implement strategies to attract the best of the crop – which is highly pivotal in this ever changing landscape.

With all-in-one HR software like Omni, you can leverage automation and streamline your processes while gaining actionable insights for continuous improvement and team effectiveness. Through leveraging the power of automation, Omni allows HR teams and managers access to custom reports on specific recruitment KPIs in the hiring process and swiftly address potential issues and drive company performance.

To join the 83% of Omni customers who have unlocked new, actionable insights after using our solution, book your demo with our team today.

When it comes to setting company or team goals, Objectives and Key Results (OKR) is a great place to start. OKRs allow managers to provide a framework for setting goals, aligning teams, and driving focus and accountability. However, OKR implementation requires a more intricate approach to ensure you reap all the benefits.

In this article, we will be sharing our 6-step process for OKR implementation and common pitfalls to avoid, making goal setting a breeze for you and your team.

Common OKR Implementation Pitfalls

If this is your first time rolling out OKRs within your organization, there are a few key things to consider.

1. Lack of alignment

A study found that when people are forced to do something without a clear understanding, they become less interested and will only perform if under supervision.This applies to OKR implementation as many organizations often underestimate the importance of explaining and aligning goals with their employees.

It’s important to have a clear alignment between departments and individual employees so that they are aware of the common goal, and the reason behind it. By doing so, employees have better motivation and engagement, making them more likely to go above and beyond to reach their goals.

2. Setting too many objectives

One of the most common pitfalls for OKR implementation is when management sets too many objectives. Employees who have too much on their plate may find it difficult to work efficiently, negatively impacting work-life balance, and in worse cases, may suffer from burnout.

A good practice is to start out with two to three priority objectives and grow from there. When it comes to OKR implementation, less is more.

3. Neglecting regular check-ins

Don’t treat your OKRs like New Year’s resolutions. Your OKR implementation should be an integral part of your company culture and schedule regular check-ins to monitor overall progress.

A great place to start is to incorporate 1-on-1 meetings with your employees. During this time, assess their progress, recognize and reward their accomplishments, and brainstorm ways to overcome bottlenecks or hurdles that they may be facing.

Alternatively, incorporate this process within your performance reviews to make the most out of your session.

Learn more: How to Write Effective OKRs: The Ultimate Guide for 2024

6 Steps for OKR Implementation

Now that you have a better understanding of the pitfalls of OKR implementation, here’s our six-step process for OKR implementation to effectively manage your goals:

1. Define your organization’s mission and objectives

Before your OKR implementation, it’s important to clarify your strategy. This is easily the most important step, but it’s often overlooked.

In order to reap the benefits from your OKR implementation, your strategy needs to be well-informed, actionable and easy for employees to understand.

Refer back to your company’s mission and purpose. This will serve as your guide when you are setting your OKRs for the quarter or the rest of the year.

2. Foster a strong OKR culture

As mentioned above, to ensure a successful OKR implementation, it’s essential to integrate OKR within your company culture.

You can do so by clearly highlighting the “why” behind your OKR implementation, and how they can contribute to the employee’s and overall organization success. Share a few success stories of other companies that use OKRs to further illustrate this.

Create a positive work environment that encourages open communication, building employee trust and promoting collaboration across different departments. When OKR implementation becomes an integral part of the company’s culture, employees will be more engaged and motivated to achieve their goals.

3. Set company-level OKRs

The next step in effective OKR implementation is to set company-level OKRs. This means involving all relevant departments, stakeholders and teams within the discussion. Consider hosting company-wide brainstorming sessions to narrow down on the objectives and key results that your organization would like to accomplish within the quarter. Ensure that company objectives are aligned at both company and department levels.

Objectives set should be ambitious but not over the top, as this can significantly impact the team’s motivation. It should push them out of their comfort zone, but not overwhelm them.

4. Effectively communicate OKRs

Once you’ve set your OKRs, next up in your OKR implementation strategy is to effectively cascade your OKRs to the team.

Break down larger company objectives into smaller departmental and individual goals. This makes the goals more relevant and less intimidating, motivating your workforce.

After breaking down your goals, ensure employees are aligned and understand how their individual contributions impact overall goals. This can be done through 1-on-1 meetings or performance reviews where managers can have an in-depth discussion with employees to go through their goals, and how it contributes to the bigger picture.

5. Implement regular check-ins and gain feedback

As time goes on, establish a cadence for OKR reviews and updates. Encourage open communication within your team and get feedback from employees regarding their progress and issues that they are facing.

Having a system that allows for timely feedback and support is important to ensure efficient OKR implementation.

6. Reflect and learn

Last but not least, analyze OKR performance regularly and identify areas that can be improved. Market shifts, organization and employee growth can all affect relevance and efficiency of your OKR implementation. Hence, it’s good to foster a culture of continuous improvement and experimentation within the organization to encourage employees to think outside of the box, grow their skills, and achieve company goals.

Additional reading: OKR vs KPI: What’s the Difference?

Unlock Your Team’s Potential with OKR

OKRs are one of the most effective frameworks for establishing business goals, and developing a sustainable tracking system will help your organization efficiently implement and sustain OKR goal setting for your entire business.

Omni’s performance management system powers your business with access to reports and analytics that provide valuable insights for measuring key results. Easily set, track, and measure OKRs across your teams within one, intuitive dashboard.

To learn more about how Omni can help you unlock your business’ potential, book your demo with our team today.

When considering health benefits for your workforce, health insurance is a key factor. This is because it helps attract and retain employees, supports their well-being, and reduces absenteeism. However, with many plans available, choosing the right one can be challenging.

This article focuses on exploring HMO meaning, providing insights into how it works and how it might benefit your organization.

What is the HMO meaning and purpose?

HMO meaning refers to Health Maintenance Organization, a type of insurance plan that provides healthcare services to members through a network of doctors, hospitals, and other providers.

Members subscribed to the HMO have to pay a monthly or annual fee to access the medical services.

Here are the major characteristics of the HMO health plan:

There are many plans for HMO, meaning that although most plans cater to employees, some are open to individuals such as freelancers, self-employed individuals, or family members.
The requirements and scope of employer-provided health insurance can also vary significantly, influenced by each country’s healthcare system and regulations. For example, Japan employers are required to enroll their employees in the national health insurance system, which provides comprehensive coverage. In Singapore, employers must contribute to the Central Provident Fund (CPF), which includes Medisave for healthcare savings, and often offer private health insurance as a benefit.
They are of various types, this includes comprehensive HMO plans which are traditional products that cover a wide range of benefits with annual premiums that vary and prices depending on the age bracket. Prepaid health cards on the other hand, are a more affordable option of a HMO plan. The only difference is, prepaid cards coverage is not as extensive as its counterpart and is limited to benefits such as emergency care and patient care.
HMOs cost less than other medical plans. This is one of the reasons why they are highly preferred among organizations. However, it comes with certain limitations.

We’d discuss more of HMO’s meaning in the next sections.

How do HMOs work?

To understand HMO meaning, it’s important to consider how they function. This section is dedicated to explaining their operation.

Choose primary care physician (PCP)

Under the HMO plan, members are required to select a primary care physician. The PCP is responsible for managing the member’s overall healthcare (including non-emergency care). Members are allowed to change to another primary care physician if they are unsatisfied with their current one.

Coordinated care through referrals

If a member requires further care and medical attention, they must first consult with their primary care physician. Once approved, the PCP refers the member to a specialist within the HMO network. The member can then use this referral to make an appointment. However, without a referral, the member might have to pay out-of-pocket.

Focus on preventive care

The HMO plan allows members to receive preventative care free of charge. These services can range from health education, awareness campaigns, routine health screenings, vaccination, and lifestyle modification interventions. This way, employees can detect health problems early, potentially avoid more serious issues, and reduce overall healthcare costs by addressing conditions before they escalate.

HMO vs Health Insurance

HMO vs health insurance is another concept peculiar to the HMO meaning. However, they both differ in their providers and packages. Here’s a breakdown of their differences.

HMOs are offered by HMO companies and they cover mainly out-patient care, in-patient care, emergency care, preventative care and in some cases, life insurance.

Health insurance is typically provided by life insurance companies, with critical illness and life insurance being the two main areas of focus in their insurance packages.

They also differ in terms of affordability. For example, HMOs negotiate lower rates with hospitals and medical providers. They look for these best packages their members can afford. But with traditional health insurance, patients can choose the Fee-for-Service (FFS) model in which they are expected to pay the hospital directly if they get admitted. This makes it expensive for members. The Preferred Provider Organization (PPO) model also has a higher premium and takes more money out of the pockets of individuals.

What are the benefits of HMO?

Another way to understand the HMO meaning is by examining its benefits. The following benefits apply to both employers and employees.

Lower premiums

Providing health insurance can be expensive, especially for large organizations. For example, KFF, a health policy research, polling, and news publication released a recent survey which compared healthcare costs from previous years. From what was observed, the costs had escalated with the average annual health insurance premiums in 2023 being $8,435 for individual coverage and $23,968 for family coverage. This was 7% percent higher than the previous year. And in 2018, the average family premium had increased by 22%. Employers can tackle expensive health insurance costs by opting for HMOs because it aids in managing health insurance costs with its lower premium offering.

Emphasis on preventive care

One of HMOs main offering is preventive care. Preventive care helps to keep members healthy and reduces the need for more expensive treatments by covering routine check-ups, vaccinations, and screenings.

Provide coordinated care

Finally, HMOs use a primary care physician to manage and coordinate all aspects of a member’s healthcare. This approach ensures that care is well-organized and reduces the risk of overlapping treatments or medications. The PCP acts as a central point for referrals and care management.

What are the limitations of HMO?

Another crucial aspect of understanding the HMO meaning is its limitations. If you’re considering this option, it’s important to be aware of the following drawbacks.

Limited network

Other health plans allow its members to choose from a large pool of doctors, hospitals or specialists. But this doesn’t apply for HMO, meaning members are only allowed access to providers within the network. A limited network may mean fewer top-rated or specialized providers are available. This could potentially impact the quality of care a member receives, especially for complex or rare medical conditions requiring specialized expertise.

Also, if the network providers are not conveniently located, members may have to travel further to receive care. This can be time-consuming and impractical, especially in rural areas or for those with limited transportation options.

Referral requirements

As mentioned, members require a referral from their PCP to see specialists or receive certain care. This can create delays and may require additional appointments to get the necessary referrals.

In cases where a member is not able to find the right specialist within the HMO network, they might have to receive treatment from a specialist outside the network. As a result, they incur higher out-of-pocket costs, as these visits are often not covered by the HMO.

Less flexibility

When it comes to healthcare treatment, it’s good to have flexibility. However, the HMO plan’s rules and network restrictions can limit members’ ability to choose providers and access services. This can affect the subsequent care and treatments that they receive.

Who should consider HMO?

HMO plans typically have lower premiums compared to other types of health insurance. This makes them an affordable option for individuals or families wanting to reduce their monthly healthcare expenses.

Those who prefer coordinated care through a primary care physician are also likely to opt for the HMO plan.

Another category of persons who should consider HMOs are people who value preventive care and routine check-ups.

Many employers offer HMO plans as part of their fringe benefits package. These plans can be a cost-effective and convenient choice for employees who want comprehensive coverage managed by their employer.

What is covered under HMO?

The following services are covered by HMO.

Outpatient care: This includes visits to healthcare providers for diagnosis and treatment that do not require an overnight stay. Routine check-ups, consultations with specialists, minor surgical procedures, and lab tests are common examples of outpatient care.
In-patient care: This involves treatment that requires a hospital stay. Surgeries, intensive care, and extended medical treatments necessitate overnight or longer stays in a hospital.
Emergency care: This covers immediate medical attention required for sudden and severe conditions. Examples include treatment for heart attacks, severe injuries, or other urgent health crises that necessitate emergency room visits.
Preventative care services: This places a major focus on maintaining health and preventing illnesses. Vaccinations, routine screenings (like mammograms and colonoscopies), and health education services fall under preventative care.
Prescription medications
Specialist care with a referral from the PCP

What are some common exclusions?

Out-of-network care (unless in emergencies): Care received from providers who are not part of the HMO network is usually not covered, except in emergency situations. Members must use in-network providers to have their care covered.
Elective or cosmetic procedures: Optional procedures such as cosmetic surgeries are not covered under HMO, meaning patients will have to carry the financial burden as it is not considered essential for health.
Long-term care or custodial care: Services like nursing home care, long-term rehabilitation, or personal care assistance that help with daily activities over an extended period are generally not covered.
Experimental treatments or non-FDA-approved medications: Treatments and medications that are considered experimental or have not been approved by the Food and Drug Administration (FDA) are usually excluded from coverage. These are often not proven to be safe or effective.
Some specific therapies or treatments not covered under the plan: Certain therapies or treatments, such as alternative or complementary therapies (e.g., acupuncture, chiropractic care), may not be covered depending on the plan’s specifics. Each HMO plan has its own list of covered and excluded services.

How to manage exclusions?

Managing exclusions in an HMO plan involves strategies for handling services not covered by the insurance policy. Here are some tips on how you can do it effectively:

Understand your plan

If you’re looking to manage exclusions, the first step would be to review your HMO meaning and plan details to know what’s covered and what’s not. Knowing these details helps you avoid extra costs. This can be done by reading the summary of benefits, policy details, and any updates from your HMO provider.

Talk to your PCP

Your PCP can help navigate the exclusions by recommending covered alternatives or necessary referrals within the network. Therefore schedule a consultation with your primary care physician to go over your healthcare needs and limitations of your plans.

Consider a supplemental insurance plan

Can’t find the treatment you want your HMO to cover? It might be a good idea to explore alternatives by looking for community resources, discount programs, or non-profit organizations that provide assistance for excluded services. Better still, you can purchase a supplemental plan that fits your lifestyle and addresses your needs.

Simplify HMO Management with Omni

Omni streamlines your HMO management by automating time-consuming and repetitive tasks, and frees up your valuable time and energy so you can focus on what really matters — strategically engaging and nurturing your team.

Powering Asia’s fastest-growing, modern companies, Omni’s employee database software scales alongside your company so you can customize and leverage the system to meet your evolving HMO management needs while ensuring compliance.

Omni allows your organization to securely and centrally manage employee HMO information such as contract, membership ID, compliance documents and more. Our employee self-service portal makes it easy for employee’s to upload and update their information, centralizing critical information such as HMO enrollment forms, communication and reimbursement records, helping ensure your HMO management meets the regulations set by local regulation.

Book your demo with our team today to learn how Omni can help transform your business processes.

Goal setting and measuring progress is a crucial component for business success. OKRs allow managers to provide a framework for setting goals, aligning teams, and driving focus and accountability. When writing effective OKRs, employees feel more engaged and motivated to reach desirable outcomes.

In this article, we will explore what makes a good OKR and the components of writing effective OKRs.

What are OKRs?

Objectives and Key Results (OKRs) are a goal setting framework that helps organizations to define measurable goals — or objectives — and track their outcomes. The framework is designed to help businesses establish ambitious goals in a short period of time.

Read next: OKRs for HR: Samples and Guide

What is the OKR format?

A typical OKR consists of an objective and several key results. The objective is a clear, concise goal, while the key results are measurable outcomes that indicate progress.

For example,

Objective: Improve the efficiency of resume processing

Key Results:

Reduce the time to process a resume from 15 minutes to 5 minutes by Q3.
Increase the accuracy of resume data extraction to 98%.
Implement technology to automate resume scanning by the end of Q2.

Confused about the difference between OKRs and KPIs?

Learn more with our guide!

What makes a good OKR?

A good OKR is a powerful tool for uniting teams, setting clear goals, and measuring success. Here’s are some characteristic of what makes a good OKR:

Clear objectives

When writing effective OKRs, make sure it is clearly defined in regards to what you want to achieve. It should also be aspirational and motivating to inspire action and focus.

SMART key results

OKRs should be SMART. When writing effective OKRs, it should be specific, measurable, achievable, relevant and timely.

Aside from clearly defining your objectives, you should also spell out how you’ll measure success. It should be quantitative and verifiable by performance measurements. Effective OKRs directly contribute to the objective and have a clear deadline.

Learn more: Professional SMART Goal Examples and Techniques to Foster Continuous Improvement

Challenging yet attainable

Effective OKRs should be challenging but attainable. If OKRs are unrealistic, employees may instantly recognize it as unattainable and don’t put in effort from the beginning. They may also be demoralized if OKRs are constantly unachievable.

Hence, writing effective OKRs involves setting realistic goals that motivates and pushes your team’s limits without overwhelming pressure that could cause employee burnout.

Review and update regularly

Another crucial component of writing effective OKRs is to regularly review and update them. Tracking your OKRs progress and adjust as needed. A good practice is to seek feedback from employees to further improve and refine your targets. This ensures that your OKR is well-rounded and effective.

Read next: OKR Software Comparison Guide 2024

Tips on Writing Effective OKRs

As you now know, OKRs can be a powerful tool to motivate and engage your employees. However, to truly reap the benefits, you need to be writing effective OKRs.

Here are some of our tips on writing effective OKRs:

1. Be clear and concise

When writing effective OKRs, the first step is to understand the basics. It’s important to have a clear vision of what you are trying to achieve. As mentioned before, your objectives should be qualitative, inspiring, and actionable.

As for the key results, think of how you will measure success. They should be specific, measurable, achievable, revelant, and timely.

Consider hosting brainstorming meetings or receive feedback from employees to flesh out goals that will have the most impact, and are worthwhile.

Once you’ve established the basics, communicate it to your team in a clear and succinct manner so that it’s easy to understand.

2. Focus on outcomes

Next step on writing effective OKRs is to focus on the outcomes, instead of the outputs.

If your team only focuses on outputs, they can become overwhelmed and preoccupied with completing tasks without considering their impact on the overall goals. This can result in missed opportunities for improvement or innovation.

Contrastingly, writing effective OKRs that focus on outcomes provide clear direction for the team, allowing them to focus on tasks that truly contribute to the company’s mission and goals. Another benefit is it encourages team members to take ownership of their role, finding new ways to achieve their goals, and promotes a company culture of strategic thinking and innovation.

3. Set ambitious but attainable goals

As mentioned above, it’s important to set ambitious but achievable goals when writing effective OKRs.

When goals are too easy, they lack challenge and don’t push the team to its potential. Contrastingly, goals that are too hard can put pressure on the team, leading to frustration and burnout.

Hence, writing effective OKRs that are challenging yet attainable with effort and dedication hits the perfect spot for promoting employee engagement and increasing efficiency.

4. Limit the number of OKRs

When juggling too many balls, employees may not perform at their best. This applies for writing effective OKRs as well. Limiting the number of OKRs allows employees to focus on what matters.

A good rule of thumb is to have three to five OKRs per quarter. Combined with it being SMART and challenging, you can truly reap the benefits of writing effective OKRs.

5. Get feedback from your team

Whether it’s goal setting or after implementation, involve your team and encourage them to provide feedback.

Employees who play a part in writing effective OKRs will feel more involved and motivated to achieve the goals. Similarly, they will also be more likely to provide feedback and ways to improve once the OKRs are in place.

6. Regularly review and adjust

Last but not least, regularly reviewing and adjusting your goals is an important part of writing effective OKRs. Just as your company and employees grow, so do your goals. Hence, treat OKRs as a living document and review and adjust as needed to ensure they stay relevant and effective.

Additional reading: How to Build an Effective OKR Scoring System for Your Team

Implement Effective OKRs with Omni

To learn more about how Omni can help significantly improve your organizational goal-setting processes, take a product tour with our team today!

Learn more: 6 Step OKR Implementation Guide

An Employee Wellness Report has shown that over 50% of Malaysian employees experience job-related burnout. For employers and companies that prioritize their employees, this means finding a way to reduce burnout for their employees. A good strategy for this is introducing voluntary time off (VTO) to increase workforce productivity.

Although implementing this policy can help reduce employee fatigue, proper attention must be given to how it works. In this article, we will help you understand what you need to know about VTO, what you stand to gain, and the things to consider when executing it in your organization.

What is voluntary time off (VTO)?

Voluntary time off (VTO) is a company policy that gives employees the right to take unpaid leave at their employer’s discretion, usually during less demanding work hours or seasons.

VTO is determined by the business’s demands, as opposed to typical leave policies, which employees use for private reasons. Because employees need the flexibility that comes with their work and personal life, this policy can be effective to stifle that balance.

With this approach, companies can encourage a better work-life balance by understanding the VTO meaning and improve on creating a workplace culture that is comfortable for their employees.

What is the difference between PTO and VTO?

It’s a known fact that both paid time off (PTO) and voluntary time off (VTO) are time off policies, but they serve different purposes.

PTO is a paid benefit employees enjoy for reasons such as vacation, sick days, or any personal occasion. And it’s mostly allocated with a set number of days that can be taken whenever they want.

Conversely, the VTO meaning refers to an unpaid leave option that employees use when companies have reduced workloads or when they need to adjust their workforce. It’s a flexible working policy for companies to manage labor costs without resorting to forced layoffs or cutting costs.

However, it’s important to note that employees can choose to take voluntary time off or not. Once taken, employees will not be paid during the duration of voluntary time off.

The main difference between paid and voluntary time off is in the purpose and usage of both policies. PTO is paid for personal reasons, while VTO is unpaid and is a strategy for companies to manage overstaffing costs.

What are the types of VTO?

There are many types of voluntary time off; here are two of the most common ones in organizations:

Unpaid leave

This is the basic voluntary time off observed. Unpaid leave is the time off enjoyed by employees without receiving pay and it can be used for personal or family reasons, or simply to recover from burnout and focus on well-being.

In most cases, employees don’t receive their regular salary during this period, although they may still qualify for certain benefits like continued health insurance or retirement contributions. This leave gives them a chance to focus on personal well-being and return to work refreshed and motivated.

Read next: Why Mental Health Days Are Essential for Your Employees

Volunteer time off

VTO is a voluntary time off that provides employees with voluntary unpaid leave to help with the organization’s overstaffing issues. In rare cases, this voluntary time off can be compensated on a case-by-case basis or due to company policies.

What are the benefits of a VTO policy?

Companies looking to implement VTO policies need to know what they stand to gain. Here are some benefits of having this policy:

Increase employee satisfaction

A voluntary time off policy empowers employees to manage their own work-life balance. It also signals that the organization trusts This can lead to increased satisfaction, a result of feeling free to handle personal issues without worrying about how it would affect their work efficiency.

Reduce absenteeism

With voluntary time off policies, employees can take time off whenever necessary. This helps reduce absenteeism brought on by personal problems, stress, or burnout. With these issues handled, employees can focus on work at hand and work more productively.

Improve employee retention

Employee retention is also an advantage of VTO, meaning employees are likely to have a stronger sense of loyalty and dedication when they perceive employers are prioritizing their needs. Policies like this can help to reduce attrition and retain employees, as they are less likely to look for other employment options.

Save cost

VTO policies can help organizations save money on labor expenses by reducing the need for overtime, temporary labor, and other expensive measures.

Provide flexibility for employees

Voluntary time off policies give employees the freedom to manage their personal and professional responsibilities, which lowers stress and improves employees’ general well-being giving space for employee promotion.

Things to Consider When Implementing a VTO Policy

When introducing a voluntary time off policy in your organization; here are some of the key things to keep in mind:

Clearly define guidelines and criteria

You should establish a clear understanding of what constitutes a valid reason for taking VTO and set specific guidelines for eligibility, duration, and notice periods. This will help prevent confusion for employees, employers and other stakeholders while ensuring consistency.

Review staffing needs

Assessing and understanding your organization’s staffing requirements can help to ensure that your VTO policy won’t compromise critical operations or leave you short-staffed during peak periods.

Ensure fairness and transparency

For a fair and transparent process, approving voluntary time off requests will require guidelines to avoid favoritism or unconscious bias. Also, as an employer, you’re required to clearly communicate these criteria to all employees and ensure that the team managers are trained to handle these leave management requests.

Communicate the policy

Communicate the guidelines clearly, especially if it’s your first time introducing the voluntary time off policy. Some effective ways to communicate to employees is through employee handbooks, work reviews, company intranet and newsletters. Explicitly state the purpose of the policy, as well as the criteria and expectations. You should also address questions or concerns and provide support to ensure a smooth adoption.

Implement controls for abuse

No matter how good a VTO policy is, there is a chance that employees will abuse it. That’s why it’s important to establish measures to prevent this. These measures could include monitoring usage patterns, setting reasonable limits, and addressing any misuse promptly. This will help maintain the integrity of the policy and prevent negative impacts in the long run.

Build a Flexible Workforce with Omni

Leave management systems offer a practical solution to reducing administrative work and streamlining People management processes.

Omni’s time off management capabilities help managers and HR teams swiftly navigate employee leave management. Omni’s platform allows you to approve leave applications on the go and keep track of who’s in and out of the office with at-a-glance scheduling.

Our employee self-service portal empowers employees to submit their time off requests, which automatically routes to the appropriate manager thanks to customizable approval workflows. With automated calculations, employees and managers can easily view leave balances in real-time, and track how many vacation days they have left without having to go through HR.

Our localized solutions and inter-connected system integrates your leave management efforts with payroll processing, facilitating automatic, accurate calculations and compliance with local regulations for various regions.

Take a product tour with our team today!

Not ready to switch to an automated system? Download our free Employee Time Off Request Form template to help streamline your manual system.

With the rising collective awareness of employee well-being comes the attention towards individuals who are especially prone to mental health struggles, such as working parents.

In its survey on “South-East Asian Mothers at Work,” Milieu Insight collected input from 3,000 working mothers across South-East Asia. It is reported that “six out of 10 working mothers in the region struggle to find time for both work and family commitments.”

Clearly, juggling parental responsibilities with job demands can be tricky. However, employers have the opportunity to change this. By learning how an HR team can support working parents, you can enjoy better work satisfaction, employee well-being, and retention.

Core Challenges of Working Parents

To effectively support working parents, you have to target their pain points and challenges such as:

Schedule conflicts

Handling parental responsibilities with a nine-to-five job is challenging. Working parents often run into overlaps between their work schedules and children’s schedules, especially during back-to-school season.

On an average day, they need to: take their kids to and from school, which might create a conflict with their working hours; feed the children dinner and put them to bed at a reasonable hour, which makes overtime difficult; and let’s not forget after-school activities, parent meetings, and doctor’s appointments.

According to Alyssa Johnson, the vice president of global account management for Waltham, Mass-based Care@Work, “Back-to-school season brings an array of challenges. New caregivers, new students and new after-school programs all require a period of adjustment that working parents are balancing with their responsibilities in the office.”

Stress and anxiety

Stress is almost a trademark for working parents. Pickups, drop-offs, childcare, and school work combined with work requirements and high workloads will do that to a person. Changes and uncertainties concerning school and childcare schedules cause additional stress.

Stress and its repercussions are even more prevalent in working women, as they care for children and handle other domestic chores, as highlighted in the Asia-Pacific Care Economy Forum.

Isolation and lack of support

Parenting can make working parents feel isolated. When push comes to shove, family members might not be available to help. Furthermore, companies might not have proper procedures, regulations or support that assist working parents.

Due to these factors, parents scramble to balance their jobs and caring for their kids. As a result, they don’t have the time to nurture friendships and have deep, fulfilling interactions with adults. So, employees feel as if they’re alone, especially in times of distress.

Financial burden

Finances can also pose a challenge for working parents. They need quality childcare, but childcare costs might be beyond their means. One of the top concerns for parents is the affordability of child care and education.

Another is personal finances, such as debt and money. The financial stress of parenting can cause working parents to leave their jobs for better-paying ones.

Missing out on work opportunities

As working parents are scrambling to balance work and life commitments, they may not be as motivated or productive at work. This may lead to them missing out on work opportunities such as performance bonus, employee promotion and more.

On the flip side, some working parents may choose to give up or miss out on work opportunities in order to better provide for their child and family needs. This is further highlighted by the Milieu Insight survey above whereby “one in five working mothers across Southeast Asia feels that being a mother has had an adverse impact on their career, with the highest percentage being in Singapore at 40%.”

Benefits of Supporting Working Parents

As an HR manager, your efforts to support working parents can benefit both employees and the organization. Here’s how:

Improve employee retention and loyalty

If you’re dedicated to supporting your employees and mindful of the challenges they face as working parents, it makes them more appreciative and loyal to your company. They’ll find performing their jobs and caring for their kids manageable. Similarly, future working parents feel more confident and secure with the support the organization provides, boosting retention rates.

Read next: What is Attrition Rate? Tools and Tips to Calculate, Analyze and Improve Your Team’s Retention

Enhance employer brand and talent acquisition

By implementing initiatives to support working parents, you as an employer signal to employees that you prioritize their well-being and work-life balance. This HR effort improves your employer brand, making your business more inclusive and fosters a positive company culture.

Accordingly, you’ll have a wider talent pool to choose from as top talents typically hold companies to higher standards, and parenting support makes your benefits package more appealing.

Improved productivity and performance

HR practices designed for working parents promote employee well-being, self-care, and staying connected with the outside world, which is directly correlated with higher performance and productivity levels. You’ll find this particularly evident during back-to-school season and with new parents.

Your efforts to support parents help you avoid employee burnout, which is common in high-performance environments. After all, you encourage your employees to use their paid leaves and practice self-care in general. Preventing burnout protects your employees’ performance levels and helps parents avoid lashing out at their kids.

Learn more: Tips for Increasing Workplace Efficiency and How HRIS Can Help

Compliance with regulations

As an HR specialist or business owner, implementing working parent-friendly practices helps you stay compliant with federal and local labor laws. Think parental leave regulations, selected family-friendly policies, bonus issuance, and promotions. Complying with such laws protects you against costly penalties and legal action.

5 Ways HR Can Champion Working Parents

Now that you’ve gotten a better understanding on the benefits supporting working parents bring, here are 5 actionable steps you as an employer and HR leader can take:

1. Establish flexible working arrangements

Workplace flexibility gives employees more control over how, when, and where they work. These arrangements include remote or hybrid work models, customizable working hours, part-time arrangements, and compressed work weeks. If your team can work remotely, they should be able to. If not, offer flexible leave or time-off options.

Flexible working arrangements can accommodate the commitments of working parents and other changes throughout employees’ lives. As a result, parents can manage drop-offs, pickups, and sports games, and fit work within their schedule.

Not to mention, flexible work saves money on childcare, transportation, and food. It gives parents more quality time with their kids and enhances the overall quality of their lives, which means more job satisfaction.

Additional reading: How to Implement an Asynchronous Work Environment

2. Provide financial and resource support

Since finances are one of the top concerns for parents, you should provide resources and financial support. This could look like a benefits or rewards package that caters to parents. Also, focus these resources on transition points in your employees’ lives, such as returning from maternity leave, having a second or third kid, or changes in the work schedule or role.

Here are some examples of financial and resources support:

On-site daycare
Prepared meals
Lactation consulting
Breastfeeding support
Child care assistance
Maternity concierge services
Paid parental leave without career setbacks (for at least 12 weeks)
Back-to-school stipends
Childcare stipends
Cash payments for parents of newborns
Incentives and gifts
Contributions to college savings plans
Education assistance programs to help cover educational expenses, potential tuition reductions, and scholarship grants for children

Read next: Understanding Employee Financial Wellness Programs & Their Benefits

3. Cultivate a supportive work culture

Your workplace culture should be supportive, promoting work-life balance and empowering new parents. You should normalize caregiving in the workplace and put an end to the glorification of workaholic patterns.

You can do that by celebrating and recognizing the contributions of working parents, listening and empathizing with their issues and needs. Additionally, you can promote breaks and focus on productivity, not how many hours they’ve worked. Finally, create a community page on your internal communication channels where working parents connect and support one another.

4. Prioritize leadership and training

Train your HR team and managers on all levels in the challenges of new parenthood, the protocol for their return from leave, the sensitivity of discussing caregiving, two-way communication channels for working parents, and available resources.

Also, train leaders to manage parenthood with their jobs adequately. This way, they can “lead by example” and instill the belief that it’s possible for new parents. For instance, they might have photos of their kids on their desks and leave early occasionally to attend their kids’ games while having a positive, eager attitude about work.

5. Invest in employee wellness programs

Finally, you can implement wellness programs to boost employee health, both mental and physical. These have a direct effect on employee productivity levels because they help them manage stress and prevent burnout. For accessibility, these programs should be easily available and accessible.

To support working parents, wellness programs can include parent coaching sessions, well-being strategies, and mental health support. Your parent coaching should focus on career coaching (to walk employees through parental leave) and peer coaching (to help working parents with performance, skills, and employee engagement).

Empowering Working Parents for Success with Omni

An environment where working parents have the support they need for success is crucial for maintaining productivity and driving results.

Employee management software helps you streamline administrative HR functions so you can focus on building the perfect support system for your employees who are working parents.

Omni offers a solution that combines people and performance management and workflow automation to manage the end-to-end employee lifecycle. Wherever you are in your journey, Omni has a module that suits your needs.

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Let Omni help you champion working parents while increasing productivity and driving impactful business outcomes. Book your demo with our team to learn more.

In recent years, inflation, high cost of living, and recession have been major financial stressors for employees. To worsen the case, BrightPlan reports that 79% of workers are in debt, and 38% have barely enough emergency savings. A large reason is due to poor financial education for employees. If this persists, employees’ mental health can be negatively impacted, leading to loss of productivity at work.

The solution to this? Create an environment where workers’ financial well-being thrives. And it all begins with adequate financial literacy training. Doing this helps them make informed monetary decisions that relieve and stabilize their personal and work lives.

In this article, we show you why investing in financial literacy for employees is a smart decision for businesses. You’ll also discover how to implement successful financial literacy training programs that help workers become prudent money managers.

National Financial Awareness Day 2024

National Financial Awareness Day falls annually on 14 August. This day is dedicated to learning about principles and practices that can guarantee a solid financial future. Many organizations leverage this day to encourage employees to take control of their financial health. Its goal is to educate people about proper ways to manage their finances and make informed decisions to help them achieve their monetary goals.

Employers and HR teams can organize various activities to celebrate National Financial Awareness Day. This includes counseling, coaching, and resources enlightening employees on debt management, spending, budgeting, saving, investment, goal-setting, and other money-related topics.

Financial education for employees is crucial to team success. By celebrating this day, you arm employees with adequate knowledge for securing their financial future. Also, understanding these concepts helps workers avoid costly mistakes that can wreck their finances. Ultimately, they make their money work for them and enjoy a balanced life.

Want more engagement ideas?

Download our HR Calendar 2024 for year-long inspiration!

What is financial literacy training?

Financial literacy training involves using educational measures to break down monetary concepts such as personal financial management, budgeting, taxation, borrowing, savings, and investing. Examples include workshops, 1-on-1 meetings with financial advisors, seminars, webinars, etc.

According to BrightPlan, only 18% of employees have basic financial literacy. This explains why 91% of employees are stressed about their finances. But with financial literacy training, employers can help change this narrative.

For example, employees become self-sufficient and better equipped to tackle monetary issues. Furthermore, they develop good money habits like saving and investing instead of splurging.

Financial literacy training reduces stress and anxiety so employees can achieve monetary stability while staying focused and satisfied with their jobs.

Why is financial education for employees important?

Financial education for employees helps workers make smart decisions with their money. But beyond that, it also:

Reduce stress and improve morale

According to a 2023 PWC survey, 57% of workers say worrying about their finances is a major cause of stress. This stress negatively impacts their mental health, sleep quality, and self-esteem. Eventually, an employee might find it difficult to concentrate on tasks and lose interest in work.

However, with financial literacy for employees, you show workers how their money habits affect their future. These trainings easily address major concerns like monthly expenses, taxes, insurance, healthcare, retirement planning, etc. But once employees can manage their finances effectively, they worry less and feel motivated to work.

Better financial decisions

By providing financial literacy for employees, organizations empower and equip their workers with the knowledge, skills, and resources to understand complex financial concepts. As a result, they make better financial decisions that enrich their personal lives and improve the organization’s monetary health.

Increase productivity

Per PwC’s Financial Wellness Survey, one in three full-time employees says money issues have affected their productivity at work.

By offering financial education for employees, you lift a major burden off their shoulders and create a positive work environment where they are physically, mentally, and financially healthy enough to contribute to organizational success. Since employees who aren’t worried about money tend to concentrate better on their work, they’ll see no reason to be absent. This leads to improved performance and increased efficiency.

Improve employee retention

According to Talent LMS’s report, 73% of employees getting financial literacy training from their company say it helps them feel more safe and secure. Similarly, 83% getting financial education for employees are satisfied with their jobs. This means that developing financial literacy for employees gives them more reasons to stay loyal to your company.

Beyond reducing attrition rate, investing in financial education for employees also attracts top talents to become new hires in your organization. How? It helps position your company as one that values its workers and is interested in their well-being and development.

When employees feel valued and satisfied with their jobs, they stay with the company longer and foster a positive employer brand image.

Read Next: 8 Tips to Increase Employee Retention

What is covered in financial education for employees?

Budgeting

This financial education for employees is a spending plan that estimates how much money workers will make and spend over a certain time, particularly a month or a year. Its goal is to help employees spend their money more wisely by allocating it to important items. This is necessary to ensure workers have enough money to cater to their immediate needs (shelter, food, clothing, car payments, etc.) and future desires.

Saving

Employees should be taught the art of setting aside money for future use rather than spending it immediately. It can be as simple as keeping some money in a piggy bank or a savings account that lets them earn interest on their money. By establishing a savings culture, workers can build an emergency fund or meet up with unexpected expenses like medical care, home repairs, or car maintenance.

Debt management

Kellye Guinan, Personal Finance Contributor on Bankrate, defines debt management as “a way to get your debt under control through financial planning and budgeting.” Its goal for employees is to lower their current debt and work toward ending it.

Though “debt” has a negative undertone, not every debt is bad. And employees need to understand this. For instance, bad debt occurs when a worker’s monthly expenses exceed their income. In this case, they may borrow or rely on credit cards for expenses, and suffer a high interest rate that poses challenges for repayment. On the other hand, good debt occurs when an individual borrows money for something that is expected to yield returns.

Offering financial literacy for employees empowers them to manage their debt themselves or through a credit counselor. They’ll also become more familiar with interest rates and how to incur good debt and repay their loans without ruining their finances.

Investing

Financial literacy training for employees also covers investment. Here, workers learn how to put money into certain schemes to make profits or generate income over time.

You can introduce employees to investment opportunities such as real estate, stocks, bonds, Exchange-Traded Funds (ETFs), mutual funds, or a commercial venture. Also, while educating them on investments, be sure to inform them on risk management strategies so they can have balanced investment portfolios and achieve their financial goals.

Financial planning

This is the main goal of financial literacy for employees. It encourages workers to take a comprehensive look at their finances and plan how they intend to reach their goals. It often involves planning for estate, tax, retirement, investment, education funding, philanthropy, and insurance. Financial planning ensures employees spend the right amount of their income on vital monetary matters without incurring debt.

How to improve financial literacy for employees?

To equip your employees with adequate knowledge about money, invest in the following:

Financial wellness programs

Employers implement these initiatives to address various aspects of financial education for employees. They help workers properly manage their finances, boost financial literacy, and improve their overall monetary health. The programs include workshops, seminars, investment advice, emergency relief, tax education, retirement programs, healthcare benefits, and more.

When developing these wellness programs, ensure they align with employee needs. Also, seek feedback, monitor usage, and offer incentives for participation. Doing this will ensure that all financial wellness programs are effective and utilized.

Read next: Understanding Employee Financial Wellness Programs & Their Benefits

Financial coaching

Schedule regular workshops, seminars, webinars, or 1-on-1 consultations with financial experts on crucial financial topics such as budgeting, investing, retirement planning, and debt management. Also, it’s best practice for each coaching session to be interactive by featuring Q&A sessions and group discussions to keep employees engaged.

Benefits education

Aside from salary or wages, employees might not be aware of the other forms of compensation your company offers, such as fringe benefits. However, through financial literacy training, you can help bridge the knowledge gap by educating them about health insurance, paid time off, retirement plans, and medical coverage, among others.

Financial tools and resources

Another way to improve financial education for employees is to introduce them to financial wellness software and resources that will positively impact their financial literacy. Examples include budgeting apps, financial wellness newsletters, tax planning tools, investment and savings courses, and others.

Investing in Your Employees’ Financial Future

Financial education for employees is a crucial component for employee wellbeing and organizational success. Hence, investing in financial literacy for employees is a sure fire way to improve your business functions and drive growth.

Powering Asia’s fastest-growing, modern companies, Omni’s document management scales alongside your company so you can customize and leverage the system to store important documents for your financial literacy training.

On top of that, Omni also offers real-time graphs and easily exportable reports, streamlining performance reporting and reducing calculation times and errors. These tools empower HR teams to monitor trends on financial education for employees over time, compare results across various departments, and proactively identify areas for improvement.

To join the 83% of Omni customers who have unlocked new, actionable insights after using our solution, take a product tour with our team today.