15+ HR METRICS
YOU SHOULDN'T IGNORE
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HR analytics is a hot topic nowadays when
companies should be ready to meet the upcoming
marketplace changes and trends. With a great
number of devoted books, conferences and services
it’s easy to lose sight of really important issues in
this realm. Let’s remind you of key HR metrics every
HR specialist should take into account.
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COST PER HIRE
Shows how much it costs for your company
when you hire a new worker.
total internal recruiting costs + external recruiting costs
/
total # of hires in a given time frame
The national average cost per hire in
the U.S. is anywhere from $3,000 to
$5,600, depending on the industry.
(Bersin by Deloitte)
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REVENUE PER
EMPLOYEE
Demonstrates how much each one of your
employees is actually earning for your company.
revenue / total # of employees
AmerisourceBergen, a pharmaceutical
distributor, generated more than $7.9M per
employee in 2016.
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RETURN O N
INVESTMENT (ROI)
Measures an investment’s gain or loss relative to
the investments spent on HR issues.
(total benefit - total costs) x 100
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HR EXPENSE
FACTOR
Reflects HR Department expenses helping to
establish baselineones.
total H R expense / total operating expense
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ABSENCE RATE
Shows how many days your workers are missing
during a set period of time.
# days absent in m o n th / (average # of employees
during a mo n t h x # of workdays)
When companies select the top 20% most
talented candidates for a role, they frequently
realize a 25% decrease in unscheduled
absences.
(Gallup)
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TURN O V ER
Shows the percentage of employees who leave an
organization during a certain period of time.
# of employees exiting the job during x m o n th period /
average actual # of employees during the same period
A new employee can take up to two full years
to reach the same level of productivity as an
existing teammember
(Bersin by Deloitte)
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TURNOVER COSTS
Reflects how much money every employee who
leaves the company costs for it.
total costs of separation + vacancy + replacement +
training
Loosing of an employee can anywhere from
16% of the person’s salary for hourly,
unsalaried employees, to 213% of the salary
of for a highly trained position.
(The Center forAmerican Progress)
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V O LUN TARY
TURNOVER
# of employees that voluntarily left /
the average # of employees
IN V O LUN TARY
TURNOVER
# of employees that involuntarily left /
the average # of employees
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BENEFIT OR
PROGRAM COSTS
PER EMPLOYEE
Shows the average cost of all benefits per
employee.
total costs of separation + vacancy + replacement +
training
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BENEFITS AS A
PERCENT OF
SALARY
annual benefits cost / annual salary
UTILIZ ATIO N
PERCENT
total # of employees using a benefit /
total # of employees eligible for the benefit
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PERCENT OF
PERFO RM AN C
E GOALS MET
OR EXCEEDED
Reflects how much money every employee who
leaves the company costs for it.
# of performance goals m et or exceeded /
total # of performance goals
53% of employers said they don’t actively
track improvedperformance.
(EREMedia)
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AVERAGE
EMPLOYEE AGE
Helps to plan succession and forecast staffing
areas of opportunity as older workers begin to
consider retirement.
total Age of Employees / headcount
23% of employees believe they’ll have to work
past age 70 to live comfortably in retirement;
another 5% don’t think they’ll ever be able to
retire.
(Willis TowersWatson)
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PROMOTION RATE
Shows the percentage of employees who have
been promoted at the current workplace.
promotions /headcount
9.3% of employees received a promotion in
the past year.
(WorldatWork)
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OVERALL
RETENTION RATE
Reflects how long people are sticking around in a
specific department or job.
combined years of service / total # of employees
46% of HR pros say retention is their greatest
concern.
(SHRM)
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RETENTION RATE
OF STARS
RETENTION RATE
OF LOW
PERFORMERS
combined years of service / total # of employees
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OVERTIME PER
CO N TRIBUTO R
Shows how much extra time your employees
worked over a certain period.
overtime hours / # of people working overtime
67% ofAmericans favor increased overtime
eligibility.
(Gallup)
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TRAINING
INVESTMENT PER
EMPLOYEE
Demonstrates how much money a company
spends on educating its employees.
total training costs / headcount
22% of employees say their employers provide
training and development that helps in career
advancement.
(Saba Software)
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EMPLOYEE
EN GAGEM EN T
RATE
It is generally accepted that the best way to measure
employee engagement is through an employee
engagement survey. Conduct them regularly, at least
once a year. Smarter companies now carry out a quarterly
employee engagementsurvey.
Higher workplace engagement leads to 37%
lower absenteeism, 41% fewer safety
incidents, and 41% fewer quality defects.
(Gallup)
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THAN K
YOU
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