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12/7/2020 20 Common HR Metrics and their Formulas

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20 Common HR Metrics and their Formulas

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12/7/2020 20 Common HR Metrics and their Formulas

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How often does your HR department measure its effectiveness? HR metrics and measurements can

be powerful in showing us areas where we could improve and better meet the needs of our

organization and its employees. They can also help provide meaningful data to help us make good

decisions for our business and department.

There are an endless array of HR metrics you can use spanning payroll, compensation, benefits,

engagement, retention, training, and more – all of which can provide incredible insight into how

your HR function is performing. But, some measurements are more important than others

depending on your organization’s goals, strategy, and the data it can feasibly track, analyze,

and use. Four crucial considerations that HR professionals need to consider when using HR metrics

include:

What metrics are most important to the organization?

What data needs to be gathered or tracked to calculate these metrics?

How will the data be analyzed and benchmarked?

How will the analysis be used for action planning, development/improvement, and

problem-solving?

We’ve provided some basic and standard metrics that we find many organizations using to help you get started measuring HR:

Metric Formula

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12/7/2020 20 Common HR Metrics and their Formulas

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Absence rate # days absent in month ÷ (average # of employees during a month x # of

workdays)

Benefit or program costs

per employee total cost of employee benefit/program ÷ total # of employees

Benefits as a percent of

salary annual benefits cost ÷ annual salary

Compensation as a percent

of total compensation

annual salary ÷ total compensation (salary + benefits + additional

compensation)

Compensation or benefit

revenue ratio compensation or benefit cost ÷ revenue

Cost per hire recruitment costs ÷ (compensation cost + benefits cost)

Engagement or satisfaction

rating

percent of employees engaged or satisfied overall or with a given aspect of the

workplace

Percent of performance

goals met or exceeded # of performance goals met or exceeded ÷ total # of performance goals

Percent receiving

performance rating

# of employees rated under a given score or rating on their performance

evaluation ÷ total # of employees

Revenue per employee revenue ÷ total # of employees

Return on investment (ROI) (total benefit - total costs) x 100

Time to fill (average) total days taken to fill a job ÷ number hired

Training/development

hours sum of total training hours ÷ total # of employees

Tenure average # of years of service at the organization across all employees

Turnover (annual) # of employees exiting the job during 12 month period ÷ average actual # of

employees during the same period

Turnover costs total costs of separation + vacancy + replacement + training

Utilization percent total number of employees utilizing a program/service/benefit ÷ total number

of employees eligible to utilize a program/service/benefit

Workers' compensation

cost per employee total workers compensation cost for year ÷ average number of employees

Workers' compensation

incident rate

(number of injuries and/or illnesses per 100 full-time employees ⁄ total hours worked by all employees during the calendar year) x 200,000

Yield ratio percentage of applicants from a recruitment source that make it to the next

12/7/2020 20 Common HR Metrics and their Formulas

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stage of the selection process

Keep in mind that this is merely a sampling of the many metrics you can use to gauge the

effectiveness of your HR function. There are dozens more that could potentially be beneficial

to track and measure, depending on your organization's unique needs.

More on these topics: Compensation, Engagement, HR Metrics, Payroll, training

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