You probably track several HR-related numbers, but are you sure you’re tracking the right ones? When it comes to metrics, most HR departments fail to focus on strategic HR information.
Sure, turnover rate is important, but it may not help your top executives when they have to make difficult business decisions. So offer them metrics that do. Your statistical savvy will enhance HR’s role as a strategic partner in guiding the enterprise.
Here are some of the more common metrics that experts say HR professionals should know how to track:
- Revenue factor: Revenue ÷ number of full-time employees (FTE).
- Human capital value-added: Revenue – (operating expense – [compensation cost + benefit cost]) ÷ number of FTE.
- Compensation-to-revenue ratio: Compensation cost ÷ revenue.
- Compensation expense-to-revenue ratio: Compensation cost ÷ operating expense.
- Turnover: Number of employees leaving ÷ average number of FTE for the period.
- Turnover percentage: Number of employees leaving – number of employees who were desirable to lose (such as terminated or poorly performing employees) ÷ average number of FTE for the period.
- Time to hire: Average number of days from job vacancy to when a new employee accepts a job offer.
- Cost per hire: Total recruiting costs (including advertising, search firm fees, HR staff time, hiring manager time, , etc.) ÷ number of new hires.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/37478/track-the-hr-metrics-that-really-matter "
- Tighten I-9 practices in advance of new legislation
- Punishing a worker for personal blog post
- Don't blow off legal papers unless you're prepared to personally pay back wages
- Good-Faith Process—But Not Absolutely Correct Conclusion—Is Enough to Fire Harasser
- Work with IT staff to make sure all HR documents are easily accessible