GROUP 7 MEMBERS

◦ 1)PASHMEEN KAUR 436

◦ 2)DHRUV SHARMA 413
◦ 3)RICHA SHUKLA 406
◦ 4)SHAIFALI TAYAL 434
◦ 5)SAHIL SETHI 426
◦ 6)PRINA CHOPRA 433
Ratio Analysis
GROUP 7- HUMAN HIVE
RATIO ANALYSIS - DEFINITION
Ratio analysis makes forecasts of human resources’ needs on the basis of the ratio between
selected causal factors such as volume of sales and number of employees needed, or between
quantity of output and number of employees required for the production of that quantity.
Information from trend analysis is useful in working out the ratio. The method is based on the
assumption that productivity will continue to remain the same.
 How HR Uses a Ratio Analysis
A benefit to a ratio analysis is that HR can use a basic ratio calculation to estimate staffing demand in a number
of different ways. Some of the most common include employee turnover ratios, time to fill jobs and cost-per-hire
ratios. Turnover ratios allow HR to modify initial workforce demand estimates based on the number of
replacement employees the business may need to hire throughout the coming year. Time to fill jobs helps HR set
a time frame for the hiring process and make decisions on when, where and how to post open positions. Cost-
per-hire ratios help in HR budget planning.
 Advantages and Disadvantages of
Ratios
Ratio analysis is a simple calculation and provides a solid basis to begin HR forecasting. However,
ratios are premised on past data. Therefore, the projections do not take into account possible
differences in the business’s production processes, shifting demands of the business’s customers,
or the talents of the employees. This means that it is possible that the ratios do not accurately
represent the business’s staffing requirements because it will be based on outdated data. Ratio
analysis also only establishes basic staffing levels. This analysis does not provide information about
the traits the employees will need to be successful within the organization, which is a key
consideration in any staffing decision.
TYPES OF RATIOS
 DEMAND RATIO
Educational and related institutions often use
demand ratios to help determine their human
resource needs. A demand ratio in this case
illustrates the number of one group required to
oversee another group. For example, you operate
an elementary charter school which requires a
maximum of 25 students for every teacher. A new
apartment and townhouse complex opens nearby
bringing 100 new students to the school. Your
school must hire four more teacher to meet
demand
 PERSONNEL TO YIELD RATIO
The personnel to yield ratio helps you determine
the amount of effort or activities it will take to hire
one new employee for a particular job. For
example, say the response to past job openings
were, for every ten resumes you reviewed, one
looked interesting enough to do a phone screening
interview, resulting in a ten to one ratio resume
screening ratio. For every five phone interviews,
three seemed enough of a fit for an in-person
interview, resulting in a five to three phone
screening ratio. For every five candidates you
interviewed, two were good enough to make offers
to, resulting in a five to two in-person interview
ratio. To determine how many resumes you need
to successfully hire one person, you would sum
these ratios.
 PRODUCTIVITY RATIO
The productivity ratio assesses how many people
it takes to perform a certain amount of work or,
alternatively, how much work each person can
typically perform. Many small companies assign
broader job scopes to employees. If your firm does,
calculate productivity by work scope, not by a
particular job. Calculate the productivity ratio by
dividing the work load by the number of people.
This ratio works well when workloads and
capabilities remain fairly consistent..
EXAMPLE
THANK YOU