HR Metrics And Analytics

Absenteeism Rate Formula: (Number (#) of days absent in Measures absenteeism. Determine if your company
month) ÷ ((Ave. # of employees during has an absenteeism problem. Analyze why and how
mo.) x (# of workdays)) x 100 to address issue. Analyze further for effectiveness of
attendance policy and effectiveness of management
in applying policy.
Compensation Analytics Analysis of workforce costs by manager, Determine where greatest investment in human
department, function or location capital costs are concentrated by department and
per capita.
Cost of Employees by Budget metrics such as salary roll-ups, Analysis of department to department costs to
Department average salaries and budget differentials determine compensation management or potential
assist in workforce reporting and planning discriminatory actions.
Cost per Hire Formula: (Advertising Costs + Agency Costs involved with a new hire. Measurement
Fees + Employee Referrals + Travel cost demonstrates changes and improvements to
of applicants and staff + Relocation costs expenses in recruitment and retention costs.
+ Recruiter pay and benefits) ÷ Number Determine what your recruiting function can do to
of Hires increase savings or reduce costs.
Diversity Ratios Analysis of gender, ethnicity and or EEO- EEOC Compliance - Ethnicity, Gender Analysis for
1 categories for a given function, role, potential disparate impact analysis
location or compensation level
Headcount Analytics Metrics include full time or part time A clear snapshot of the organization by numbers of
employees, open positions, contractors, employees managed by manager, department,
employees on leave of absence, counts of division, etc.
specific roles by function or location
Health Care Costs per Formula: Total cost of health care ÷ Total Per capita cost of employee benefits. Indicates cost
Employee Employees of health care per employee.
HR Administrative Organizations vary in terms of the cost per For example - 100 employees = $110k - $170k/year
Costs employee for HR administration, but HR Administration Costs
typically the cost ranges from $1,100 to
$1,700 per employee per year
HR expense factor Formula: HR expense ÷ Total operating HR Expenses in relation to the total operating
expense expenses of organization. In addition determine if
expenditures exceeded, met or fell below budget.
Analyze HR practices that contributed to savings.
Human Capital ROI Formula: Revenue - (Operating Expense - Return on investment ratio for employees. Did
[Compensation cost + Benefit cost]) ÷ organization get a return on their investment?
(Compensation cost + Benefit cost) Analyze causes of positive/negative ROI metric. Use
analysis as opportunity to optimize investment with
HR practices such as recruitment, motivation,
training and development. Evaluate if HR practices
are having a causal relationship in positive changes
to improving metric.

Human Capital Value Formula: Revenue - (Operating Expense - Value of workforce's knowledge, skill, and
Added [Compensation cost + Benefit Cost]) ÷ performance. This measurement illustrates how
Total Number of FTE employees add value to organization.
Performance Performance ratings and comparison to Analysis of department to department or manager to
Management Analytics averages provides a snapshot of manager to determine potential rating discrepancies
employee potential. This should include and potential discriminatory actions.
Key Performance Indicators (KPI)
Revenue Factor Formula: Revenue ÷ Total Number of FTE Benchmark to indicate effectiveness of company
and to show employees as capital rather than as an
expense. Human Capital can be viewed as an
investment.
Tenure Analytics Metrics around retention and workforce Departments where tenure is generally longer
effectiveness in specific positions demonstrate the existence of fair and consistent
management practices

What is the cost of up through the organization. Turnover Analytics Turnover rates including voluntary and For Example High turnover in a particular involuntary turnover help to evaluate department can indicate poor hiring procedures by recruiting and management effectiveness the manager or poor management by supervision.bls. Turnover Rate Formula: [ Number of separations during This measures the rate for which employees leave a month ÷ Average number of employees company and or department/manager. Turnover Costs Formula: Cost to terminate + Cost per Factors (i. vacancies and contractors are dissemination used to analyze workforce dynamics and centers of responsibility Workforce Demographic EEOC ratios including counts. Calculate and compare metric to national average using Bureau of National Affairs BNA Turnover Report or www. and implementing incentives can reduce costs. etc. Analysis of department to department to determine Analytics percentages. Has performance indicators or productivity increased as a result of acquiring new skills and knowledge? Have accidents decreased?). plan year. Implement retention efforts. evaluate causes. jobs. year 3. totals and averages provide potential discriminatory actions. Compare data historically (year 1. insight into managing compliance and regulatory issues Workforce Structure The number of employees reporting to a How many individuals report to and up through Analytics supervisor .Time to fill Formula: Total days elapsed to fill Number of days from which job requisition was requisitions ÷ Number hired approved to new hire start date.e. benefits for that workforce as well as impact of this workforce on revenue vs.e. Evaluate if HR practices has a causal relationship in positive changes to improving metric. Establish time Metric (e. .). and abilities) and hire+ Vacancy Cost + Learning curve loss costs incurred when an employee leaves your company. Is there a during month] X 100 trend? Has metric increased/decreased? Analyze what has caused increase/decrease to metric. Training Investment Formula: Total training cost ÷ Headcount Training cost per employee. Exit interviews are a useful tool in determining why employees are leaving your organization . year 2. knowledge. Evaluate if HR practices are having a causal relationship in positive changes to improving cost of turnover. year 1 to year 2. etc.gov/jlt/home. skills. etc. If not. Workforce Analytics Simple headcounts including permanent Provides span of control and workforce employees. You can also analyze workers employees compensation further to determine trends in types of inuries. injuries by department.And layers under Managers specific individuals.) to show improvement/decline. Use metric as benchmark to show causal relationships between HR practices and reduced workers compensation accidents/costs. Workers' Compensation Formula: Total Workers Compensation Analyze and compare (i.) on Cost per Employee cost for Year ÷ Average number of a regular basis. How efficient/productive is recruiting function? This is also a process measurement.e. expenses to the company • Benchmark data. disability management. Determine what organization can do to improve retention efforts. Analyze training Factor function further for effectiveness of training (i.g. fiscal year. HR practices including safety training.htm. compensation. etc.