HR Metrics

HR & Business Metrics
Metrics provide a number of factors that can be measured to show how HR contributes to the business. Measures
such as absence rate, health cost per employee, and HR expense factors show that HR has a sense of the
importance of human capital measurement in supporting business objectives. The following calculators are basic
HR and business metrics to help measure your companys absence rate, cost per hire, the value of your human
capital and human capital return on investment.
The calculators listed below are not meant to be an all-inclusive listing of HR metrics, only a listing of most
commonly used metrics. A more comprehensive guide, titled How to Measure Human Resource Management,
by J ac Fitz-enz and Barbara Davison, is available for purchase at the SHRM Store.

BENEFITS

Title Formula Description

Benefits Cost Factor

Benefit costs Total number of
employees on payroll headcount
The average cost for all benefits per
employee
Benefits as Percentage of
Total Compensation

Benefits Labor costs The total cost of benefits as a percentage of
the total cost of compensation
Benefits as a Percentage
of Operating Expenses

Benefit costs Operating expenses Employee benefit costs as a percentage of
operating expenses
Benefits As a Percentage
of Revenue

Benefit costs Revenue The cost of employee benefits as a
percentage of revenue
Health Care Costs per
Employee

Total cost of health care Total
Employees
Per capita cost of employee benefits
Workers' Compensation
Cost per Employee

Total WC cost for Year Average
number of employees
Analyze and compare (i.e. year 1 to year 2,
etc.) on a regular basis.
Incident rate
Number of injuries and/or illnesses
per 100 FTE Total hours worked by
all employees during the calendar
year x 200,000

The incident rate is the number of injuries
and/or illnesses per 100 full-time workers
Severity rate
The number of days away from work
per 100 FTE Total hours worked by
The severity rate is the number of days
away from work per 100 full-time equivalent
all employees during the calendar
year x 200,000
employees
BUSINESS LITERACY


HR Costs Per Employee

HR costs Headcount The cost of HR for each employee based on
headcount
HR Costs Per FTE

HR costs FTE The cost of HR per full-time equivalent
employee
HR Employee Cost Factor

HR compensation costs Regular
HR FTE

The average compensation paid to HR
employees
HR expense Percent

HR expense Total operating
expense

HR expenses in relation to the total operating
expenses of organization
HR FTE Investment Rate HR expenses Total FTE

The dollars spent on HR functions per full-
time equivalent employee
HR FTE Ratio FTE HR FTE The number of full-time equivalent employees
per individual HR full-time equivalent
employee
HR Headcount

Headcount HR headcount The number of employees per individual HR
employee
HR Headcount Investment

HR expenses Total headcount The dollars spent on HR per headcount
employee
HR Outsourcing Percent

HR outsourcing costs HR
expenses
The outsourcing expenses as a percentage
of total HR expenses
HR Total Employee Cost Factor

HR costs Headcount The cost of HR for each employee based on
headcount
Income Factor

Revenue Operating expenses
Total FTE
The dollars of profit generated per full-time
equivalent employee
Labor Cost Expense Percent

Labor costs Operating cost The labor cost as a percentage of total
expenses.
Labor Costs Per FTE

Labor costs FTE The average labor cost per full-time
equivalent employee
Labor Cost Revenue Percent

Labor costs Revenue The total labor costs as a percentage of
revenue.
Outsourcing Expenses

Outsourcing expenses Operating
expenses
The costs associated with outsourcing as a
percentage of total operating costs
Profit Per FTE

Revenue Operating costs
Labor costs 1

The number of pre-tax dollars of revenue
generated per full-time equivalent employee
Revenue Factor

Revenue Total Number of FTE Benchmark to indicate effectiveness of
company and to show employees as capital
rather than as an expense
Revenue Per FTE

Revenue FTE The number of dollars or revenue generated
per full-time equivalent employee
COMPENSATION


Average Compensation
Paid to Each FTE
Compensation costs for all regular
employees Regular employee
FTE

The average compensation paid to each full-
Paid to Executive Level
Employees

Executive employee Compensation
costs Executive FTE
The average compensation paid to executive
level employees
Paid to Management
Level Employees

Management employee
Compensation costs Manager
FTE
The average compensation paid to
management level employees
Average Total
Compensation Paid to
FTE's

Compensation costs for all
employees on payroll +Benefit
costs Regular FTE
The average compensation and benefit costs
per full-time equivalent employee excluding
management and executive level employees
Average Total
Compensation Paid to
Regular FTE and
Contingent Employees

Compensation costs for all regular
and contingent employees +Benefit
costs Regular and contingent
employee headcount
The average compensation and benefit costs
per regular full-time equivalent and
contingent employees excluding
management and executive level employees
Compensation Costs As
a Percentage of
Operating Expenses

Costs of compensation for all
employees on payroll Operating
expenses
Employee compensation costs as a
percentage of operating expenses
Compensation As a
Percentage of Revenue

employees on payroll Revenue
Employee compensation costs as a
percentage of revenue
Executive
Compensation As a
Percentage of
Compensation Costs

executive level employees on
payroll Costs of compensation for
all employees on payroll
The cost of executive compensation as a
percentage of all compensation costs
Manager Compensation
As a Percentage of
Compensation Costs
management level employees on
payroll Costs of compensation for
all employees on payroll
The cost of management level employee
compensation as a percentage of all
compensation costs

Merit Increase Proration Number of months actually worked
number of months under the
current increase policy x increase
percentage the person would
otherwise be entitled to

The basic steps to calculating an employees
pay increase appropriate to the period of time
worked
Overtime Per Individual
Contributor
Overtime hours Individual
contributor headcount
The average number of overtime hours
worked by each individual contributor based
on headcount
Total Compensation
Costs As a Percentage
of Operating Expenses

employees on payroll Operating
expenses
Employee compensation and benefit costs as
a percentage of operating expenses
Total
Compensation Costs As
a Percentage of
Revenue

employees on payroll Revenue
Employee compensation and benefit costs as
a percentage of revenue
Total Contingent
Employee
Compensation As a
Percentage of
Compensation Costs

Costs of contingent employees
employees on payroll
Total costs of compensation for contingent
employees as a percentage of compensation
costs
Variable Compensation
Costs As a Percentage
of Compensation Costs
Variable compensation costs
The costs of variable compensation as a
percentage of compensation costs
CONSULTANTS


HR Consulting Percent HR consulting costs HR
expenses
The percentage of HR expenses that are
used for HR consulting services

DIVERSITY


Average Employee Age Total age Headcount The average age of an organizations total
employee population
Diversity Hire Ratio The number of external recruits
who self-identified as a member
of a diversity category The
number of external recruits

The percentage of individuals hired externally
who self-identified as a member of a diversity
category (i.e. Disabled, minority, etc.)
Diversity Percentage Number of external recruits who
self-identified as a member of a
diversity category Headcount

The number of employees who self-identified
in a diversity category as a percentage of
total headcount
Percentage Diversity At
Executive Level
Number of executive level
employees who self-identified as
a member of a diversity category
Total executive headcount

The number of executive level employees
who self-identified as belonging to a diversity
Percentage Diversity At
Management Level
Number of management level
employees who self-identified as
a member of a diversity category
Total management Headcount

The number of management level employees
who self-identified as belonging to a diversity
Total Females As a
Percentage of Headcount

Number of female employees
Headcount
The number of employees who are female as
a percentage of headcount
Percentage Females At
Executive Level
Number of female executive level
employees Executive level
headcount

The number of executives who are female as
Total Females at
Management Level
Number of female management
level employees Management
level headcount
The number of management employees who
are female as a percentage of headcount
EMPLOYEE RELATIONS


Absenteeism Costs Total hours lost to employee
absenteeism for the month x Total
compensation (including benefits,
overtime, premium pay and other
incidentals) per employee

Measures costs associated with absenteeism
Absenteeism Rate No. days absent in month) Ave.
no. of employees during mo. x no.
of workdays x 100

Measures absenteeism
First Year Resignation
Rate
Number of resignations within 1
year of employment Headcount
for same 1 year of employment

The percentage of employees who resigned
within the first year of employment
Involuntary Terminations
As a Percentage of
Headcount
Total involuntary separations
Regular employee headcount

The number of involuntary terminations as a
percentage of headcount
Promotion Rate Number of promotions Headcount

The number of employees promoted as a
Resignation Rate Resignations Headcount

Total number of employees who resigned as
Separation Rate Total separations The number of
involuntary terminations as a
percentage of headcount The
number of involuntary terminations
as a percentage of headcount

The total number of voluntary and involuntary
terminations as a percentage of headcount
Voluntary Resignations
As a Percentage of
Headcount
Total voluntary separations

The number of voluntary terminations as a

ETHICS & SUSTAINABILITY


GLOBAL HR


LABOR & EMPLOYEE RELATIONS


Union Percentage Union headcount Headcount The number of employees belonging to a
union as a percentage of headcount

ORGANIZATIONAL & EMPLOYEE DEVELOPMENT


Career Path Ratio Promotions (Promotions +
Transfers)
The number of employees moving upward in
the organization as a percentage of all
employee movement
Human Capital ROI Revenue - Operating Expense -
Compensation cost +Benefit cost
Compensation cost +Benefit
cost

Return on investment ratio for employees.
Human Capital Value
Added
Revenue - Operating Expense -
Compensation cost +Benefit Cost
Total Number of FTE

Value of workforce's knowledge, skill, and
performance.
Management Costs Per
FTE
Management compensation cost
Total FTE

The dollars spent on Managers per full-time
equivalent employee
Management Ratio Total headcount Management
headcount

The number of employees to each manager
Management Span of
Control
Total headcount (Management
level headcount +Executive level
headcount)

The average number of employees per
manager/executive
Percentage of Employees
Trained
Number of employees trained
Total employee headcount

The number of employees receiving training
as a percentage of total employee headcount
Training Costs As a
Percentage of
Compensation
Total training costs total
compensation costs for all

Training costs as a percentage of
compensation costs
Training Costs As a
Percentage of HR
Expenses

Total training costs HR
expenses
Training costs as a percentage of HR
expenses
Training Costs As a
Percentage of Revenue
Training & Development costs
Revenue

The total costs of training & development as
a percentage of the total revenue
Training Costs Per FTE Total training costs Total FTE The dollar amount spent on training per full-

Training Costs As a
Percentage of Operating
Expenses
Total Training costs Operating
expenses

The internal and external training costs as a
percentage of operating expenses
Training Costs Per
Trained Employee
Total training costs Total
employees trained

The dollars spent on training for each
employee who received training
Training Investment
Factor

Total training cost Headcount Training cost per employee.
Training (ROI) Total benefit - Total costs x 100 The total financial gain/benefit an
organization realizes from a particular training
program, less the total direct and indirect
costs incurred to develop, produce, and
deliver the training program
Training Staff Ratio FTE Training FTE The number of full-time equivalent employees
for each full-time equivalent employee
working in training & development
Training Costs Per Hour Total training costs Total
training hours

The dollars spent on training per employee
per hour of training provided
Training Hours Per
Employee
Training & Development hours
FTE
The number of hours spent on training &
development per employee
SAFETY & SECURITY


STAFFING MANAGEMENT


90 Day Involuntary
Turnover Rate
Number of involuntary
terminations within 90 days
Headcount for same 90 days of
employment

The percentage of involuntary terminations
within the first 90 days of employment
90 Day Turnover Rate Total terminations within 90 days
headcount for the same 90 days
of employment

The percentage of new employees leaving
the company within the first 90 days of
employment
90 Day Voluntary
Turnover Rate
Total voluntary terminations within
90 days headcount for the same
90 days of employment

The percentage of voluntary terminations the
first 90 days of employment
Average Length of
Service
Total length of service
Headcount

The average length of employee service
based on headcount
Average Retirement Age Total Retirements age Total
number of retirements

The average retirement age of employees
who have retired
Average Sign-On Bonus Total sign-on bonus costs Total
number of new hires receiving
sign-on bonuses

The average sign-on bonus dollar amount for
each new hire who received a sign-on bonus
Churnover (Promotions +Demotions +
Transfers) Headcount

The rate of internal movement by employees
as a percentage of total headcount
Contingent Employees As
a Percentage of
Headcount
Number of non-permanent
employees +Headcount
Headcount

Total of non-permanent employees as a
percentage of total headcount
Cost Per External Hire (Advertising +Agency Fees +
Employee Referrals +Travel cost
of applicants and staff +
Relocation costs +Recruiter pay
and benefits) Number of Hires

Costs involved with a new hire
Cost Per Internal Hire Internal hiring costs x 1.1 factor The total of key hiring costs (plus factor) per
Number of internal hires

each internal new hire
Diversity Hire Ratio Number of external recruits who
self-identify as a member of a
protected class Total number of
external recruits

The percentage of employees externally
hired who self-identified as coming from a
diversity group
External Hire Rate Number of external recruits hired
Headcount
People hired externally as a percentage of
headcount
Female Hire Ratio Number of external female
recruits Number of external
recruits

The percentage of externally hired
employees who are female
First Year Involuntary
Turnover Rate
Number of involuntary
terminations within 1 year of
employment Headcount for
same 1 year employment period

The number of employees with less than one
year of service who left the organization
involuntarily as a percentage of headcount
First Year Turnover Rate Number of terminations within 1
year of employment Headcount
for same 1 year employment
period

voluntarily or involuntarily as a percentage of
headcount
First Year Voluntary
Turnover Rate
Number of voluntary terminations
within 1 year of employment
Headcount for same 1 year
employment period

voluntarily as a percentage of headcount
Involuntary Turnover Rate Number of involuntary
resignations Headcount

Number of employees who voluntarily left the
organization as a percentage of headcount
Internal Hires As a
Percent of Headcount
Number of internal recruits hired
Total headcount

People hired internally as a percentage of
total headcount
Offer Acceptance Rate
External
Number of external offers
accepted Number of external
offers extended

The number of external offers accepted as a
percentage of all new hire offers extended
Offer Acceptance Rate
Internal
Number of internal offers
accepted Number of internal
offers extended
The number of internal offers accepted as a
percentage of all new hire offers extended

Percentage Part-Time
Employees
Number of part-time employees
Headcount

The number of permanent part-time
employees as a percentage of headcount
Percentage of Temporary
Employees
(Non-permanent employees +
Headcount) Headcount

The number of non-permanent employees as
Retirement Rate Number of retirements
Headcount

The total number of retirements as a
Sign-on Bonus
Percentage
Total hires receiving sign-on
bonuses External hires +
College hires

The number of new hires receiving a sign-on
bonus as a percentage of total new hires
Succession Planning Rate Number of candidates
Executive level headcount

The percentage of Executive level positions
for which there is a succession candidate
Time to fill - External Total days elapsed to fill
requisitions Number hired

Number of days from which job requisition
was approved to new hire start date
Time to fill - Internal Number of internal days to fill

The number of calendar days from requisition
date to offer acceptance per new internal hire
Time to start - External Number of external days to start
Number of external hires
The number of calendar days from the date
of a requisition to the employees start date
per newly hired external employee
Time to start - Internal Number of internal days to start
The number of calendar days from the date
of a requisition to the employees start date
per new internal employee
Total Hires As a Percent
of Headcount
Number of new external and
internal hires Total headcount

The number of external and internal hires as
a percentage of total headcount
Total Offers Accepted As
a Percent of Offers Made
Number of internal and external
offers extended Total offers
extended

The number of offers accepted as a
percentage of total offers extended
Turnover Costs Total of the costs of separation +
vacancy +replacement +training
The separation, vacancy, replacement and
training costs resulting from employee
turnover. This formula can be used to
calculate the turnover cost for one position, a
class code, a division or the entire
organization
Turnover Rate (Monthly) Number of separations during
mo. Avg. No. of employees
during mo. x 100

This measures the rate for which employees
leave a company
Turnover Rate (Annual) Number of employees exiting the
job avg. actual No. of
employees during the period x 12
no. mos. in period

This measures the rate for which employees
leave a company
Vacancy Costs (Total of the costs of temporary
workers +independent
contractors +other outsourcing +
overtime) - wages and benefits
not paid to vacant position(s)
The cost for having work completed that
would have been performed by the former
employee or employees less the wages and
benefits that would have been paid to the
vacant position(s). This formula may be used
to calculate the vacancy cost for one position,
a group, a division or the entire organization
Vacancy Rate (Total number of Vacant positions
as of today Total number of
positions as of today) x 100
Measures the organizations vacancy rates
resulting from employee turnover. This
formula can be used to calculate the vacancy
rate for one position, a class code, a division
or the entire organization
Voluntary Turnover Costs Projected annual compensation
costs (Resignations +
Retirements)

The average cost to replace each employee
who left the organization voluntarily
Voluntary Turnover Rate (Resignations +Retirements)
Headcount

Number of employees who voluntarily left the
organization as a percentage of headcount
Yield Ratio Percentage of applicants from a
recruitment source that make it to
the next stage of the selection
process. (i.e. 100 resumes
received, 50 found acceptable =
50% yield.)
A comparison of the number of applicants at
one stage of the recruiting process to the
number at the next stage. (Note: Success
ratio is the proportion of selected applicants
who are later judged as being successful on-
the-job.)
TECHNOLOGY


Resources:

www.benchnet.com
Saratoga Institute http://www.saratogainstitute.com/
Human Resources Benchmarking Association http://www.hrba.org/

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