Common Types of Human Resources Metrics:

Time to hire.

The average length of time that it takes for you to hire a new employee, from the time of the job posting to their acceptance of an employment offer. You can calculate this by adding up the time for each individual hire and dividing it by the number of new hires in a given period.

Cost per hire.

How much does it cost for you to hire a new employee? This includes things like the recruiter's time, the possible cost of listing a job on a third-party site, time spent interviewing, etc.

Employee turnover.

Every business wants to have low employee turnover rates. If you are frequently losing employees and having to hire new ones, there might be an issue with your hiring or staffing process. Pay close attention to this number.

Revenue per employee.

It is very easy to determine your revenue per employee. Just divide that company's total revenue for the year by the number of employees that you have. You can also use this metric for individual departments.

Billable hours per employee.

This metric may not be applicable to every business, but it is usually relevant for businesses that offer a professional service like marketing agencies or legal firms. Not every employee will log hours that are directly billable to a client, so employees should track their time to allow you to gauge this on an individual basis. Essentially, the more billable hours per employee you have, the more revenue the company is making.

Absenteeism.

Absenteeism is the amount of time that your employees are absent from work for any reason (vacation, sick days, other). Metrics for absenteeism are given as a percentage of the total amount of available working days.

Cost of HR per employee.

Hiring, training and managing your workforce costs money. If you look at your HR expenditures for the previous month or year and then factor in the number of employees on your payroll, you can determine how much each employee costs on average for HR. This will allow you to make adjustments and lower costs.

Employee engagement.

Employee engagement is one of the most difficult metrics to obtain because it cannot be found using your financial records. You can issue company-wide surveys to your employees and ask questions rated one to five about their experience working in the company. The results can be averaged to rate your level of employee engagement.

Cost of training per employee.

In most situations, the success of a new employee has to do with the quality of their training. Still, that training has a cost. You need to pay people to spend time training new employees, you may need to supply them with equipment and materials, and they may need some time before they are ready to work without assistance. Look at your training expenditures and the number of employees you've trained to find out how much each new trainee is costing you.

Diversity/EEOC numbers.

The diversity of your workforce is more than an arbitrary number - it could be the key to your success. Diversity includes race, ethnicity, job type and salary. If your business is required to file an EEO-1 report with the Equal Employment Opportunities Commission, then you should already have access to these metrics.

FAQs:

What are examples of HR metrics?

  • Training Effectiveness Index.
  • Training Efficiency.
  • Employee Happiness.
  • Absence Rate per Manager.
  • Overtime Expense.
  • Employee Productivity Index.
  • Training Expenses per Employee.

What are KPIs for HR?

KPIs are considered to be strategic metrics as they have a direct link with the organizational strategy. HR KPIs indicate how HR is contributing to the rest of the organization.

What do you mean by HR metrics?

HR metrics are measurements used to determine how effective HR is in delivering their initiatives. These measurements include:

  • Turnover.
  • Training.
  • Return on human capital.
  • Costs of labor.
  • Expenses per employee.

What are the key HR metrics?

  • Absence Rate per Manager.
  • Overtime Expense.
  • Employee Productivity Index.
  • Training Expenses per Employee.
  • Training Effectiveness Index.
  • Training Efficiency.
  • Employee Happiness.
  • IMB Kenexa.
  • Workforce Planning.
  • People Analytics.
  • Feedback.
  • TalentSoft Analytics.
  • Aurion.
  • Oracle HR Analytics.
  • Emplysight.

Do all businesses use HR measurement?

HR metrics are more common in mid-sized to large businesses. This is because larger companies generally have more staff and a larger HR department, giving them a greater pool from which to collect data. These companies also have investors and VPs who want to see how the HR department is performing.

How can HR metrics help to address staffing issues?

If your business is experiencing staffing issues, the right HR metrics may be able to help you pinpoint exactly where those issues are. However, the data that you gather from your HR metrics will only be quantitative, so you need to be able to assess it on your own and determine the explanation for any low numbers that you see in your reports.

What are "soft" HR metrics?

"Soft" HR metrics use qualitative rather than quantitative data. Soft metrics are discovered by gathering subjective employee responses. Examples of soft HR metrics include workplace satisfaction, innovation, and morale.

What is an HR metrics dashboard?

A metrics dashboard is an online dashboard that allows you to see all of your HR metrics at a glance. You can use the dashboard in your HR software to update information and keep all of your different types of HR analytics in one place.

HR departments use recruitment metrics like application competitiveness, cost per hire, quality of hire, retention and diversity to gauge their recruitment efforts.

What is the difference between HR metrics and analytics?

While HR metrics are used to track and measure past performance, HR analytics involve analyzing company data to generate predictions or insights.

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