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EXAMPLES -HRMETRICS

Metric Formula Notes

Absence Rate [(# days absent in month) (average # of employees

during month) x (# ofworkdays)] x 100

Measures absenteeism.

Cost per Hire (Advertising + Agency Fees +Employee Referral Fees +Travel Cost of Applicants andStaff + Relocation Costs +Recruiter Pay and Benefits) Number of Hires

Costs involved with a new hire. Canbe used as a measurement to showany substantial improvements tosavings in recruitment/retention.

Health CareCosts perEmployee

Total Cost of Health CareTotal Employees

Can show per capita cost ofemployee benefits.

HR ExpenseFactor

HR ExpenseTotal Operating Expense

Shows HR expense in relation to thetotal operating expenses of theorganization. In addition, determineif expenditures exceeded, met or fellbelow budget.

HumanCapital ROI

Revenue - (OperatingExpense - [CompensationCost + Benefit Cost])(Compensation Cost + BenefitCost)

Return on investment ratio foremployees. Did the organization geta return on their investment?Analyze causes of positive/negativeROI metric. Use analysis as anopportunity to optimize investmentwith HR practices such asrecruitment, motivation, training anddevelopment. Evaluate if HRpractices are having a causalrelationship in positive changes toimproving metric.

HumanCapital ValueAdded

Revenue - (OperatingExpense - [CompensationCost + Benefit Cost])Total number of FTE

This measurement shows howemployees add value to anorganization.

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Metric Formula Notes

ProratingMeritIncreases

Number of months actuallyworkedNumber of months under thecurrent increase policyxIncrease percentage theperson would otherwise beentitled to receive

The basic steps to calculating anemployees' pay increase appropriateto the period of time worked.

Revenue perFTE

RevenueTotal Number of FTE

Benchmark to indicate effectivenessof company and to show employeesas capital rather than as an expense.

Time to Fill aPosition

Total days elapsed to fillrequisitionsNumbered Hired

Number of days from which jobrequisition was approved to new hirestart date. Shows howefficient/productive is the recruitingfunction.

TrainingInvestmentFactor

Total Training CostHeadcount

Analyzes training function further foreffectiveness of training which canbe tied to product output.

Training ROI Total Benefit - Total Costsx 100

The total financial gain/benefit anorganization realizes from aparticular training program, less thetotal direct and indirect costsincurred to develop, produce anddeliver the training program.

TurnoverCosts

Total of the costs of separation+ vacancy + replacement +training

The separation, vacancy,replacement and training costsresulting from employee turnover.

Turnover Rate(Monthly)

Number of separations duringthe monthAverage number of employeesduring the monthx 100

Calcuate and compare this metric tothe national average using Businessand Legal Reports atwww.bls.gov/jlt/home.htm.

Turnover Rate(Annual)

Number of employees exitingthe jobAverage actual number ofemployees during the period x12 number of months inperiod

VacancyCosts

Total of the costs of temporaryworkers + independentcontractors + otheroutsourcing + overtime minuswages and benefits not paid tovacant position(s).

The cost for having work completedthat would have been performed bythe former employee or employeesless the wages and benefit thatwould have been paid to the vacantposition(s). This formula may be

used to calculate the vacancy costfor one position, a group, a divisionor the entire organization.

Vacancy Rate Total number of vacantpositions as of todayTotal number of positions as oftoday x 100

Measure the organizations vacancyrates resulting from employeeturnover.

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Metric Formula Notes

WorkersCompensationCost perEmployee

Total Workers Compensationcost for the yearAverage number of employees

Analyze and compare (i.e., year 1 toyear 2, etc.) on a regular basis. Youcan also analyze workerscompensation further to determinetrends in types of injuries.

WorkersCompensationIncident Rate

(Number of injuries and/orillnesses per 100 FTE / Totalhours worked by allemployees during the calendaryear) x 200,000

The "incident rate" is the number ofinjuries and/or illnesses per 100fulltime workers. 200,000 is the basefor 100 fulltime equivalent workers(working 40 hours per week, 50weeks per year).

WorkersCompensationSeverity Rate

(The number of days awayfrom work per 100 FTE total hours worked by allemployees during the calendaryear) x 200,000

The "severity rate" is the number ofdays away from work per 100 FTE.

Yield Ratio Percentage of applicants froma recruitment source thatmake it to the next stage of theselection process.

A comparison of the number ofapplicants at one stage of therecruiting process to the number atthe next stage.

Career PathRatio

Total Promotions (Total Promotions + TotalTransfers)

This ratio is used to measure theemployee mobility and the totalamount of career advancementpromotions within the organizationthat are clearly upward versus thetotal number of lateral transfers.

METRICRESOURCES

Society of Human Resource Management

Human Capital Management Institute

Bureau of Labor Statistics