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Track the HR metrics that really matter

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in Centerpiece,HR Management,Human Resources

spreadsheet dataYou 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:

Organizational effectiveness

  • 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, background checks, etc.) ÷ number of new hires.

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