10+11 Critical HR Metrics – A Cheat Sheet To Track Success

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Critical Hr Metrics Cheat Sheet

Success becomes easily attainable when you keep a tab on the key figures that reflect value and effectiveness of initiatives taken by you. Human resources metrics are the measurable factors used by organizations to track their human capital and see how well their HR initiatives are performing. Some examples of HR metrics are: turnover, cost-per-hire, absence rate, and selection ratio among others. Assessing this data helps to recognize what’s working well, what needs improvement, and what trends to expect in the future, thereby helping companies establish their people strategy. 

“Metrics essentially give us a way of qualifying the health of our organization, and, to that end, HR metrics are now different. They’re measuring how the HR function is doing as a whole and also how we’re leveraging the people in the organization to maximize the performance of the company.” – Ross Sparkman, Head of Strategic Workforce planning for Facebook in Menlo Park, Calif.

Mentioned below are 21 critical HR metrics that are a must for any HR team that wants to help build a solid, data-driven management strategy for their organization. These essential HR metrics are divided into 2 parts: 10 HR performance metrics and 11 Recruitment & General Workforce metrics.

Let’s dive in!

10 HR Performance Metrics

Revenue Per Employee/FTE

*FTE is the hours worked by one employee on a full-time basis.

Revenue per employee or FTE is calculated as a company’s total revenue divided by its current total number of employees or total number of FTE. It is an important ratio that roughly measures how much money each employee generates for the firm. 

Labor Cost Per Employee/FTE

Labor cost per employee or FTE is calculated as a company’s total labor cost divided by its current total number of employees or total number of FTE.

Profit Per Employee/FTE

Profit per employee or FTE is calculated as a company’s total profit divided by its current total number of employees or total number of FTE.

Overtime Per Employee

Overtime per employee is calculated by the hours of overtime divided by total number of hours (contractual hours + overtime) per period. 

Training Efficiency

Training efficiency is determined by the total expenses per employee divided by the overall training effectiveness.

Absenteeism Rate/Cost

Absence or absenteeism rate is the total number of absence days divided by the total number of working days. Similarly, absenteeism cost is calculated by the cost incurred due to absence days per unit divided by the total number of working days per unit

Turnover Rate/Cost

Turnover rate is defined as the number of employees terminated during a certain period divided by the total number of employees at the beginning of the period.

HR To Employee Ratio

It is evaluated by dividing the total FTE working  in HR by the total number of FTEs.

HR Cost Per FTE

The formula to calculate this HR metric is:

Total HR cost / total number of FTEs

Promotion Rate/Time

Promotion rate is determined as the number of employees promoted divided by the total headcount whereas, promotion time is the time taken to promote employees out of the overall headcount of the company.

11 Recruitment and General Workforce Metrics

Time To Fill/Hire

This is a crucial HR metric, calculated by determining the gap between the number of days of publishing a job opening and hiring the candidate. 

Cost Per Hire

Cost per hire direct formula is given by:

Total cost of hiring / total number of new hires

Candidate/HR Satisfaction Rate

To deduce the candidate or HR satisfaction rate, you need to find out the ratio of the number of candidates/HRs who report being satisfied in their job to the total number of new employees/HRs in the organization.

Applicants Per Vacancy

Applicants per vacancy is an Hr metric evaluated by using the formula:

Total number of applicants/number of job openings

Sourcing Channel Effectiveness/Cost

Sourcing channel effectiveness: Total number of impressions of the channel/number of applications of the channel

Sourcing channel cost: Advertisement spending per channel/number of successful applicants per platform

Selection Ratio

Formula used to calculate the Selection Ratio is as follows: 

Number of hired candidates ÷ total number of candidates

Yield Ratio

Yield Ratio is a common yet important human resource metric that is determined by dividing the total number of applicants who successfully completed the stage by the total number of applicants who entered the stage. 

For example:

15:1 (750 applicants apply, 50 CVs are screened)
5:1 (50 screened CVs lead to 10 candidates submitted to the hiring manager)
2:1 (10 candidate submissions lead to 5 hiring manager acceptances)
5:2 (5 first interviews lead to 2 final interviews)
2:1 (2 final interviews lead to 1 offer)
1:1 (1 offer to 1 hire) 

Offer Acceptance Rate

Offer acceptance rate is the rate at which the total number of applicants are presented with a job offer as compared to the number of applicants who accepted a job offer.

Average Age

Average age is the sum of ages of the overall headcount of the organization divided by the total headcount.

Engagement/Satisfaction Rate

Engagement rate: Employees above the engagement norm in period / headcount at beginning of period
Satisfaction rate: No. of people who report being satisfied in their job / total employees

Retirement Rate

Lastly, this one is the HR metric calculated as follows:

Employees retired in a particular period / headcount at the beginning of that period

Final words

In order to stand out in the competitive market, it is, thus, a necessity to track these 21 key HR metrics and follow this cheatsheet religiously to emerge triumphant.

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Kajal Sharma

Kajal Sharma is a Technology Enthusiast. Having completed her Engineering Degree, she keeps abreast of the latest technology trends in the market. She has an enriching experience of many years in Content Writing & Editing and Content Marketing. Besides believing writing to be the strongest form of expression, she finds solace in music and can hum a few bars herself!

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