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70HRMetricsWithExamplesSimplicable

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70HRMetricsWithExamples
postedbyAnnaMar,July23,2011
HumanResources(HR)managespeopleincludinghiring,onboarding,performance,firing,offboarding,benefits,
developmentandcompensation.ButwhomanagesHR?
ExecutiveoversightofHRiskeytocostmanagement,productivity,businessdevelopmentandcompetitiveness.
reportingofHRmetricsisagoodtoolformanaginganyHumanResourcesdepartment.
Thefollowing70HRmetricsareillustrative.Themetricsyouchooseshouldbecloselyalignedwithyourindustry,
businessandstrategy.

HRCost
1.HRCostperEmployee
HowmuchisthecompanyspendingonHR?Example:HRcostperemployeewas$590.
2.HRCostvsRevenue
HRcostwas0.54%ofrevenue.

Business
BusinessDefinitions
BusinessMyths
Innovation
PerformanceMetrics
BusinessPlans
BusinessProcesses
BusinessPsychology
Industries
HumanResources
Risk
BestPractices
BusinessShowdown
BusinessStrategy
BusinessSustainability
CompetitiveAdvantage
CorporateCommunication
Marketing
Quality
Sales
SmallBusiness

BusinessDefinitions

HRResponsiveness

3.AverageResponseTime(ticketopenwithHR)
EmployeesopenticketswithHRtoaskquestions,raiseissuesandprovidefeedback.HowfastisHR'sinitialresponse
Example:averageticketresponsewas12.3minutes.
4.AverageResolutionTime(ticketopenwithHR)
Averageticketresolutiontimewas34.5hours.

IssueManagement

5.HRComplaintsbyCategory
HowmanycomplaintswereloggedwithHR?Complaintmetricsareoftenbrokendownbycategory(e.g.harassment)
Example:12complaintsofharassment.
6.AverageComplainResolutionTime
Howlongdoesittaketoresolveacomplaint?Example:averagecomplaintresolutiontimewas13businessdays.
7.LegalCosts
LegalcostsrelatedtoHRissues.Example:HRrelatedlegalcostswere$45,459forthequarter.
8.SettlementCostsandPenalties
CostsoffinesandlegalsettlementsrelatedtoHRissues.Example:HRrelatedsettlementsandpenaltiestotalled$1.2
millionforthequarter.

Recruiting
9.CostperHire
Costsperhireforrecruiting,hiringandonboarding.Example:theaveragecostperhirewas$22,127.
10.HiringCycleTime
Timefromhiringrequisitiondatetostartdate.Example:averagehiringcycletimewas5.8months.
11.HiringFillRate
Howmanypositionsarefilledafter6months?Example:the6monthhiringfillratewas58%.
12.OfferAcceptanceRate
Howoftendoesthepreferredcandidateaccepttheposition?Oftenbrokendownbyjoblevel.Example:theoffer
acceptanceratewas55.5%forlevel3executives.

13.AveragePerformanceofNewHires
Howwelldidnewhiresrateontheirfirstperformancereview?Example:newhiresscoredanaverageof3.6(satisfact
ontheirfirstperformancereviews.

14.VoluntaryTerminationRateinFirstYear
Howoftendonewstaffquit?Example:thefirstyearvoluntaryterminationratewas13.8%.

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BusinessMyths

70HRMetricsWithExamplesSimplicable

15.InvoluntaryTerminationRateinFirstYear
Howoftenarenewstafffired?Example:thefirstyearinvoluntaryterminationratewas8.2%.

16.FirstYearTurnoverCostRate
Averagecostsrelatedtoworkerswholeftinthefirstyearincludinghiringcosts,salary,trainingandbenefits(itisofte
assumedthatknowledgeworkersaddlittlevalueinthefirstyear).Example:averagefirstyearturnoverscost$90,398.
17.ManagerSatisfactionwithNewHires
Averagemanagersatisfactionwithnewhireswas65.2%.
18.ManagerSatisfactionwithRecruitmentProcess
Averagemanagersatisfactionwiththerecruitmentprocesswas47.9%.
19.EmployeesRecruitedfromKeyCompetitors
Insomeindustriesemployeesthatarerecruitedfromkeycompetitorstendtohavehigherproductivity.Example:131
employeeswererecruitedfromkeycompetitors.

Productivity

Innovation

20.RevenueperEmployee
Revenueperemployeewas$402,398.
21.ProfitperEmployee(PPE)
Profitperemployeewas$103,890

22.ProfitperPeopleDollar
Howmuchprofitdoyouearnfor$1spentonemployeesandcontractors.Example:profitperpeopledollarwas$0.56.
23.AverageDaysAbsent
Averagedaysabsentwas13.4days.

PerformanceMetrics

24.BusinessSpecificProductivityMetrics
Productivityshouldbemeasuredintermsthatarerelevanttoyourbusiness.Callcenterexample:callvolumeper
employeeincreased4%to17.5callsperhour.
25.SalaryIncreasevs.RevenueIncrease
Whenyourspendmoreonemployeesistherepayback?Example:averagesalaryincreasedat4.2%whilerevenue
increasedat3.2%.

PerformanceManagement

26.AveragePerformanceRating
Howwelldidemployeesscoreinperformancereviews?Example:averageperformanceratingwas3.8(highsatisfacto
27.ProblemEmployeeRate
Howmanyemployeesfailedperformancereviews?Example:theproblememployeeratewas4.5%.

28.RehabilitationRateforProblemEmployees
Howmanyproblememployeesarerehabilitatedwithin6months?Example:57%ofproblememployeesarerehabilita
29.TerminationRateforProblemEmployees
Howmanyproblememployeesareterminated?Example:22%ofproblememployeeswereterminated.

BusinessPlans

30.AverageCosttoTerminateEmployee
Howmuchdoesitcosttofiresomeone(includinglegal,administrationandseverance)?Example:theaveragecostto
terminateanemployeewas$33,090.

Costs

31.AverageSalary
Oftenbrokendownbyjoblevel,departmentorposition.Example:theaveragesalaryforalevel3executivewas$214

32.SalaryDeviation(byjoblevel)
Whatistherangebetweenthetopandbottompayforajoblevel?Example:thesalarydeviationforalevel3executiv
was$109,876.
33.CostofBenefitsasaPercentageofSalary
Howmuchareyouspendingonbenefitsrelativetosalary?Example:averagecostofbenefitswas39.7%ofsalary.
34.CostofBenefitsasaPercentageofRevenue
Averagecostofbenefitswas3.7%ofrevenue.

KeyEmployeesandStarPerformers

BusinessProcesses

35.KeyEmployeeSatisfactionRate
Howsatisfiedareyourmostimportantemployees?Keyemployeesoftenincludesexecutivesandtopperformers.
Example:keyemployeeshadasatisfactionrateof89.7%.
36.KeyEmployeeRetentionRate

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70HRMetricsWithExamplesSimplicable

Theretentionrateforkeyemployeeswas82.3%.

37.KeyEmployeeCostRate
Howmuchdokeyemployeescost(includingsalary,benefits,trainingandincentives)?Example:theaveragecostfor
level3keyemployeewas$405,098.

38.KeyEmployeesEligibleforRetirement
Howmanykeyemployeesareeligibleforretirementinthenext5years?Example:15.8%ofkeyemployeesareeligib
forretirementinthenextfiveyears.

BusinessPsychology

39.BenchStrength
Asuccessionplanningmetricthatmeasuresthedepthofthesuccessorpoolforakeyposition.Example:thereare14
qualifiedsuccessorsforlevel1executives.

40.KeyEmployeeTurnoverbyReasonCode
Whydokeyemployeesleave?Reasoncodesincludethingslikecompensation,personalreasons,benefits,professiona
developmentetc...Example:17%ofkeyemployeesleaveforbettercompensation.

HRPipeline
41.EmployeeSalarybyLevel
Averagesalarybrokendownbylevel.Example:averagesalaryforlevel8staffis$48,765.
42.NumberofEmployeesbyBand
Thereare10,876level8staff.

Industries

43.EmployeeProductivitybyPosition
Thisisabusinessspecificmetric.Biomedicalresearchexample:theaveragepatentsperseniorresearcherwas0.16.
44.AttritionbyLevel
Theattritionrateforlevel8staffwas17.3%.

EmployeeRetention
45.InvoluntaryTerminationRate
Theinvoluntaryterminationratewas2.2%.
46.VoluntaryTerminationRate
Thevoluntaryterminationratewas21.1%.

HumanResources

47.AverageRetentionPeriod
Oftenbrokendownbydepartment,managerorposition.Example:theaverageretentionperiodinthesalesdepartmen
3.4years.
48.EmployeesEligibleforRetirement
28%ofemployeesbecomeeligibleforretirementinthenext5years.
49.EmployeesEligibleforEarlyRetirement
Notallemployeeseligibleforearlyretirementwillretirethereisoftenroomtonegotiate.Example:30.2%of
employeesareeligibleforearlyretirementinthenext10years.
50.AverageTenure
Averagetenureis13.6years.
51.VoluntaryTerminationByReasonCode
Whyarestaffleaving?Example:8%ofstaffwhoquitsaiditwasbecauseofworkingconditions.

EmployeeSatisfaction

Risk

52.JobSatisfaction
Averageemployeejobsatisfactionwas67%.
53.JobEmpowerment
76%ofemployeessaytheyareempoweredtodotheirjobs.
54.CompensationSatisfaction
3%ofemployeessaytheyaresatisfiedwithcompensation.
55.OpportunitiesforAdvancement
43%ofemployeesaytheyhaveopportunitiesforadvancement.
56.TrainingandDevelopmentEffectiveness
33%ofemployeessaythattraininganddevelopmentprogramsareeffective.
57.NetPromoterRate
65%ofemployeessaytheywouldrecommendourproductstofriendsandfamily.
58.HRDepartmentSatisfactionRate
34%ofemployeesaresatisfiedwiththeHRdepartment.
59.ManagementEffectiveness

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70HRMetricsWithExamplesSimplicable

16%ofemployeesaresatisfiedwithexecutivemanagement.
60.ClarityofCompanyVision
38%ofemployeesbelievethecompanyhasaclearvision.
61.EqualOpportunities
89%ofemployeessaythereareequalopportunitiesforadvancement.
62.Work/LifeBalance
44%ofemployeessaytheyenjoywork/lifebalance.

63.EmployeeCommitmentIndex
Employeesareaskedquestionsthatgaugetheircommitmenttothecompany.Example:16%ofemployeessaytheyw
remainatthecompanyformorethan5years.
64.MarketOpportunityIndex
Employeeperceptionsofopportunitieselsewhere.Example:67%ofemployeesbelieveourcompetitorsofferhigher
compensation.
65.EmployeeComplaints
2.1%ofemployeesmadeatleastonecomplainttoHR.

66.EmployeeLawsuits
6employeesandformeremployeessuedthecompany.

BestPractices

TrainingandDevelopment
67.TrainingCostperEmployee
Averagetraininganddevelopmentcostswere$3,454peremployee.
68.TrainingperEmployee
Theaverageemployeecompleted14.7hoursoftraining.

DiversityandCompliance

Employerstrackdiversitystatisticsforregulationandcompliance.
BusinessShowdown

69.Gender
Example:54%oflevel3executivesarewomen.
70.Disabilities
Example:6.3%ofemployeeshaveadisability.

DashboardExample

BusinessStrategy

BusinessSustainability

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70HRMetricsWithExamplesSimplicable

CompetitiveAdvantage

CorporateCommunication

Marketing

3Shares

Quality

#1FreeHR
System
Bitrix24100%FreeHR
System.Time,
Collaboration,Absence,
Docs,More

Sales

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