2022 KP People Report

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2022 KP People Report

2022 KP People Report

2022 KP People Report

Metrics

Highlights

Top insights in this section are:

Best benchmark on how your company is doing is to look at your eNPS over each quarter. While the industry standard benchmarks for “good” is a score of 50-80, every company is different.

The ideal number of reports depends on the type of manager engagement required for the role. Most startups have leaders managing too many direct reports. Some of the companies surveyed noticed a correlation between span of control and burnout / attrition. A SPOC of 10+, led to 2x attrition.

eNPS Score

Majority of companies saw their eNPS score remain the same over the past 6 months. The top 2 themes of promoters for eNPS are: 1) team and peers, and 2) work flexibility (including days in the office). The top 2 themes of detractors are: 1) Compensation, followed by a tie between these 3 themes: lack of flexibility; not having the tools/information needed to do job; and effective communication.

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🧩 Fundamentals: Best benchmark on how your company is doing is to look at your eNPS over each quarter. While the industry standard benchmarks for “good” is a score of 50-80, every company is different.

Top eNPS Promoter Themes

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Top eNPS Detractor Themes

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Span of Control

Number of Direct Reports per Manager

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The ideal number of reports depends on the type of manager engagement required for the role.

Some of the companies surveyed noticed a correlation between span of control and burnout / attrition. A SPOC of 10+, led to 2x attrition.

For early stage startups with flat orgs where managers are more of a “player/coach”, the max recommended is 5-6 direct reports.

For more mature companies, the maximum number of direct reports a people manager should have is between 8-12 direct reports.

Changes in Compensation Strategy

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Findings:

For companies that have made comp changes, the largest investment areas in the compensation strategy has been with mental health and other employee benefits (over cash and equity increases). However, close to 50% of companies with 500+ employees have either widened equity bands or moved to a higher percentile target (ex: previously targeting 50th percentile, now 65th) for hard to fill roles (mostly in engineering or leadership roles). We see this most common with companies that didn’t set the correct target percentile, and with companies earlier in their revenue journey that have high valuations.

Over half of the companies with 200+ employees have increased their investment in mental health benefits. This is an area where we do not see companies decreasing spend around.

Recruiting Metrics

“Oftentimes, companies will attach themselves to the wrong signals. For high growth companies, I'd highly recommend focusing on funnel conversion rates over most other recruiting metrics, including # of hires. When managed appropriately, funnel conversion will directly impact candidate quality and time to hire. Even more so, a healthy funnel conversion will allow teams to accurately forecast # of hires over time, as well as gain efficiency in total interviewing hours—which in and of itself can accelerate a business.”

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- Christopher Dobbins, Former People Operations Leader at DoorDash

Pipeline Metrics

Many early stage companies are not tracking outbound sourcing response rates. As a best practice, we recommend you start tracking the various stages of your pipeline so you have data around which stage(s) need more investment.

📗 Sourcing metrics:

% response rate

% of two-way engagement

📈 Funnel conversion metrics:

# of applications (inbound/outbound)

% of Phone Screens to On-site

% of On-site to Offer

% of Offer to Accept

Candidate Experience 📌

If a candidate makes it to the “onsite” interview stage, a rejection call is highly recommended to increase candidate experience and build your brand. 55% of companies gather data on candidate interviewing experience.

🧩 Fundamentals: Surveys should be sent to all candidates who make it to the onsite stage. We encourage recruiters to reject all candidates who’ve made to the onsite stage over the phone. These two channels of feedback are critical to measuring and fine tuning your company’s interview process.

The top tools used include Greenhouse, Culture Amp, Lever, and Survey tools (e.g. Typeform, Coda, Survey Monkey, etc). Other tools used include Resource.io, Starred, BreezyHR.

Cost per Hire (CPH)

CPH = internal recruiting costs + operating costs* (eg. 3rd party agency, tools) / # of hires.

*Operating costs include: costs associated with 3rd party agencies, sourcing tools, job postings, referral bonus program. For example, if you hire 50 people for the year, and you spend an estimated $100,000 on the hiring process annually, that would mean that your cost per hire is $2,000. It’s a great way to measure if your recruitment process is optimized relative to the roles, and allows you to spot significant trends b when comparing between departments across the quarter and annually.

Other

WFH / Virtual Stipends: One-Time/New Hire (by Company Size)

Some fully remote companies do not offer this stipend but provide necessary equipment to employees. Most companies with <100 employees, do not offer a cash stipend that is separate from the one-time, new hire WFH stipend. For the few companies that do offer a cash stipend, the ranges are wide: $75 - $3,000/employee, with an overall average of $700 - $1,000 / employee.

Company Size

% of Companies that Offer a WFH Stipend

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Max

Average