LEADERSHIP ASSIGNMENT PART 2

51 HR Metrics Cheat Sheet 51 of the most important HR metrics

HR PERFORMANCE METRICS

1 Revenue per employee Total revenue / total number of employees

2 Revenue per FTE Total revenue / total number of FTE

3 Profit per employee Total profit / total number of employees

4 Profit per FTE Total profit / total number of FTE

5 Overtime per employee Hours of overtime / total number of hours (contractual hours + overtime) per period

6 Labor cost per employee Total labor cost / total number of employees

7 Labor cost per FTE Total labor cost / FTE

8 Labor cost percentage of revenue Total labor cost / organizational revenue

9 Labor cost percentage of total expenses Total labor cost / total organizational expenses

10 Absence rate Number of absence days / total number of working days

11 Absence rate per manager/department Number of absence days per unit / total number of working days per unit

12 Overtime expense per period Overtime pay / total pay per period

13 Training expenses per employee Training expenses / total expenses

14 Training efficiency Training expenses per employee / training effectiveness

15 Voluntary turnover rate # Voluntary Terminates during period / # Employees at the beginning of period (more

information)

BUSINESS IMPACT:

16 Involuntary turnover rate # Involuntary Terminates during period / # Employees at the beginning of the period

(more information)

17 Turnover rate of talent # Terminates who qualified as high potentials during period / # Employees at the

beginning of the period (more information)

18 Turnover rate # Terminates during period / # Employees at the beginning of period (more

information)

19 Turnover rate per manager/department # Terminates per unit during period / # Employees in the unit at the beginning of

period (more information)

20 Cost of absenteeism Total cost of absenteeism =

Total employee hours lost to absenteeism * hourly pay (including benefits) +

Supervisor hours lost in dealing with absenteeism * hourly pay supervisor (including benefits) + other costs (including temporary staff, training, loss of productivity, quality

loss, overtime, etc.)

21 Cost of turnover Total cost of turnover, see Excel (by SHRM)

22 HR to employee ratio FTE working in HR / total number of FTE

23 HR cost per FTE Total HR cost / total number of FTE

24 Time until promotion Average time (in months or years) until promotion

25 Promotion rate Number of employees promoted / headcount

GENERAL WORKFORCE METRICS

26 Average age Average age | Sum of age of all headcount / headcount

27 Average length of service Average length of service | Length of service of all headcount / headcount

28 Retirement rate # Employees retired in period / headcount at beginning of period

29 Average distance from home Average distance in miles (or km) from home

30 Engagement rate # Employees above the engagement norm in period / headcount at beginning of period

31 Satisfaction rate Number of people who report being satisfied in their job / total number of people

32 Salary hike since last year (Current salary - salary previous year) / salary previous year

RECRUITMENT METRICS | Click here for the supporting articles

33 Time to fill Number of days between publishing a job opening and hiring the candidate

34 Time to hire Number of days between the moment a candidate is approached and the moment the

candidate accepts the job

35 Cost per hire Total cost of hiring / the number of new hires

36 Source of hire Sourcing channel used to attract the hire

BUSINESS IMPACT:

37 First-year resignation rate Employees who left the organization within 1 year / headcount

Note: this number should be 0, just like metrics no. 38, 39 and 40. A percentage higher

than zero will be very costly and indicates a bad fit with new recruits and the organization. Organizations should use better selection tools and procedures to

prevent this.

38 First-year turnover rate Employees who left the organization within 1 year / total number of recruits

39 First-month turnover rate Employees who left the organization within 1 month / total number of recruits

40 Hiring manager satisfaction Number of hires who perform well / total number of hires

41 Candidate job satisfaction Number of hires who rate themselves as satisfied in their new job / total number of

hires

42 Applicants per opening Total number of applicants / number of job openings

43 Selection ratio Number of hired candidates / total number of candidates

44 Cost per hire (Total internal cost + total external cost) / total number of hires

45 Offer acceptance rate Number of applicants presented with a job offer / number of applicants who accepted

a job offer

46 Vacancy rate Total number of open positions / total number of positions in organization

47 Application completion rate Total number of people who completed the application / total number of people who

started with the application

BUSINESS IMPACT:

48 Yield ratio Number of applicants who successfully completed the stage / total number of

applicants who entered the stage. For example:

● 15:1 (750 applicants apply, 50 CVs are screened) ● 5:1 (50 screened CVs lead to 10 candidates submitted to the hiring manager) ● 2:1 (10 candidate submissions lead to 5 hiring manager acceptances) ● 5:2 (5 first interviews lead to 2 final interviews) ● 2:1 (2 final interviews lead to 1 offer) ● 1:1 (1 offer to 1 hire)

49 Sourcing channel effectiveness Total number of impressions of the channel / number of applications of the channel

50 Sourcing channel cost Advertisement spending per channel / number of successful applicants per platform

51 Cost of getting to Optimum Productivity

Level (OPL)

Total cost involved in getting someone up to speed = onboarding cost + training cost +

cost of supervision + cost of on-the-job training + (total labor cost * % OPL per month)

until 100% OPL Is reached

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