UNIT V

HR Metrics

HR Metrics are used to gauge the effectiveness of various HR responsibilities and initiatives such as
hiring, employee retention, training, and labor costs. Human resources departments can use these
metrics to improve their efficiency and demonstrate the value of their activities to upper manage-
ment.

Common Types of Human Resources Metrics:

Time to hire.
The average length of time that it takes for you to hire a new employee, from the time of the job
posting to their acceptance of an employment offer. You can calculate this by adding up the time for
each individual hire and dividing it by the number of new hires in a given period.

Cost per hire.

How much does it cost for you to hire a new employee? This includes things like the recruiter's
time, the possible cost of listing a job on a third-party site, time spent interviewing, etc.

Employee turnover.
Every business wants to have low employee turnover rates. If you are frequently losing employees
and having to hire new ones, there might be an issue with your hiring or staffing process. Pay close
attention to this number.

Revenue per employee.

It is very easy to determine your revenue per employee. Just divide that company's total revenue for
the year by the number of employees that you have. You can also use this metric for individual de-
partments.

Billable hours per employee.

This metric may not be applicable to every business, but it is usually relevant for businesses that of-
fer a professional service like marketing agencies or legal firms. Not every employee will log hours
that are directly billable to a client, so employees should track their time to allow you to gauge this
on an individual basis. Essentially, the more billable hours per employee you have, the more rev-
enue the company is making.

Absenteeism.
Absenteeism is the amount of time that your employees are absent from work for any reason (vaca-
tion, sick days, other). Metrics for absenteeism are given as a percentage of the total amount of
available working days.

Cost of HR per employee.

Hiring, training and managing your workforce costs money. If you look at your HR expenditures
for the previous month or year and then factor in the number of employees on your payroll, you can
determine how much each employee costs on average for HR. This will allow you to make adjust-
ments and lower costs.

Employee engagement.
Employee engagement is one of the most difficult metrics to obtain because it cannot be found us-
ing your financial records. You can issue company-wide surveys to your employees and ask ques-
tions rated one to five about their experience working in the company. The results can be averaged
to rate your level of employee engagement.

Cost of training per employee.

In most situations, the success of a new employee has to do with the quality of their training. Still,
that training has a cost. You need to pay people to spend time training new employees, you may
need to supply them with equipment and materials, and they may need some time before they are
ready to work without assistance. Look at your training expenditures and the number of employees
you've trained to find out how much each new trainee is costing you.

Diversity/EEOC numbers.
The diversity of your workforce is more than an arbitrary number - it could be the key to your suc-
cess. Diversity includes race, ethnicity, job type and salary. If your business is required to file an
EEO-1 report with the Equal Employment Opportunities Commission, then you should already
have access to these metrics.
What are recruiting metrics?
Recruiting metrics are measurements used to track hiring success and optimize the process of hiring
candidates for an organization. When used correctly, these metrics help evaluate the recruiting
process and whether the company is hiring the right people. Additionally, they provide you with

data that will allow you to make improvements to your recruitment process.
Making the right recruiting decisions is important. This image shows the employee’s lifetime value
as the sum of all the HR decisions made about that employee.
Using this image, we can see that hiring someone who is more suited for the job has the potential to
create an enormous return on investment (ROI).

This is why recruiting the right people is so important. Whether you’re starting off by measuring re-
cruitment data or fine-tuning your recruiting metrics, this list will give you a great overview.

1. Time to fill
This refers to the number of calendar days it takes to find and hire a new candidate, often measured
by the number of days between approving a job requisition and the candidate accepting your offer.
Several factors can influence time to fill, such as supply and demand ratios for specific jobs as well
as the speed at which the recruitment department operates.
It’s a great metric for business planning and offers a realistic view for the manager to assess the
time it will take to attract and hire a replacement for a departing employee.

2. Time to hire
Time to hire represents the number of days between the moment a candidate applies or is ap-
proached and the moment the candidate accepts the job. In other words, it measures the time it takes
for someone to move through the hiring process once they’ve applied. Time to hire thus provides a
solid indication of how the recruitment team is performing. This metric is also called ‘Time to Ac-
cept’.
A shorter time to hire often enables you to hire better candidates, preventing the best candidates
from being snatched up by a company that does have a short time to hire. It also impacts your can-
didate experience as nobody likes a recruiting process that takes a long time. You’ll be able to see
where the bottlenecks are in your hiring process and you can work to remove them.

3. Source of hire
Tracking the sources which attract new hires to your organization is one of the most popular recruit-
ing metrics. This metric also helps to keep track of the effectiveness of different recruiting channels.
A few examples are job boards, the company’s career page, social media, and sourcing agencies.
Having a clear understanding of which channel works and which doesn’t, you’ll be able to double
down on the channels that are bringing you the most ROI and decrease spending on those that
aren’t. For example, if you see that most of your successful hires are not coming from LinkedIn but
your internal job board, then that’s the channel that you want to be focusing on.

4. First-year attrition
First-year attrition or first-year / new hire turnover is a key recruiting metric and also indicates hir-
ing success. Candidates who leave in their first year of work fail to become fully productive and
usually cost a lot of money. First-year attrition can be managed and unmanaged.
Managed attrition means that the contract is terminated by the employer. Unmanaged attrition
means that they leave on their own accord (this is also referred to as voluntary turnover). The for-
mer is often an indicator of bad first-year performance or bad fit with the team.
The second is often an indicator of unrealistic expectations which cause the candidate to quit. This
could be due to a mismatch between the job description and the actual job, or the job and/or com-
pany has been oversold by the recruiter.
This metric can also be turned around as ‘candidate retention rate’.

5. Quality of hire
Quality of hire, often measured by someone’s performance rating, gives an indicator of first-year
performance of a candidate. Candidates who receive high-performance ratings are indicative of hir-
ing success while the opposite holds true for candidates with low-performance ratings.
Low first-year performance ratings are indicative of bad hires. A single bad hire can cost a company
tens of thousands of dollars in both direct and indirect costs. To read more about how to assess
these costs, check out our article on HR costing.
6. Hiring Manager satisfaction
In line with quality of hire, hiring manager satisfaction is another recruiting metric that is indicative
of a successful recruiting process. When the hiring manager is satisfied with the new employees in
their team, the candidate is likely to perform well and fit well in the team. In other words, the candi-
date is more likely to be a successful hire.

7. Candidate job satisfaction

Candidate job satisfaction is an excellent way to track whether the expectations set during the re-
cruiting procedure match reality. A low candidate job satisfaction highlights mismanagement of ex-
pectations or incomplete job descriptions.

8. Applicants per opening

Applicants per job opening or applicants per hire gauges the job’s popularity. A large number of ap-
plicants could indicate a high demand for jobs in that particular area or a job description that’s too
broad.
The number of applicants per opening is not necessarily an indicator of the number of qualified can-

didates. By narrowing the job description and including a number of ‘hard’ criteria, the number of
applicants can be reduced without reducing the number of suitable candidates. You can also focus
more on sourcing from channels that have brought qualified candidates in the past.

9. Selection ratio
The selection ratio refers to the number of hired candidates compared to the total number of candi-
dates. This ratio is also called the Submittals to Hire Ratio.
The selection ratio is very similar to the number of applicants per opening. When there’s a high

number of candidates, the ratio approaches 0.

10. Cost per hire

The cost per hire recruitment metric is the total cost invested in hiring divided by the number of
hires.

Cost per hire consists of multiple cost structures which can be divided by internal and external cost.
Internal costs include compliance cost, administrative costs, training & development, and hiring
manager costs. External costs would be background checks, sourcing expenses, travel expenses, or

marketing costs.

11. Time to productivity

Time to productivity, or time to Optimum Productivity Level, measures how long it takes to get
people up to speed and productive. It is the time between the first day of hiring and the point where
the employee fully contributes to the organization.
Excel Add-ins / Functions to help create Dashboards

Named Ranges in Excel

If someone has to call me or refer to me, they will use my name (instead of saying a male is staying
in so and so place with so and so height and weight).
Right?
Similarly, in Excel, you can give a name to a cell or a range of cells.
Now, instead of using the cell reference (such as A1 or A1:A10), you can simply use the name that
you assigned to it.
The name range in Excel is the range that has been given a name for future reference. To make a
range as a named range, select the range of data and then insert a table. Then, we put a name to the
range from the Name Box on the left-hand side of the window. After this, we can refer to the range

by its name in any formula.

For example, suppose you have a data set as shown below:

In this data set, if you have to refer to the range that has the Date, you will have to use A2:A11 in
formulas. Similarly, for Sales Rep and Sales, you will have to use B2:B11 and C2:C11.
While it’s alright when you only have a couple of data points, but in case you huge complex data
sets, using cell references to refer to data could be time-consuming.
Excel Named Ranges makes it easy to refer to data sets in Excel.
You can create a named range in
Excel for each data category, and
then use that name instead of
the cell refer- ences. For exam-
ple, dates can be named ‘Date’,
Sales Rep data can be named
‘SalesRep’ and sales data can be
named ‘Sales’.

Here are the benefits of using named ranges in Excel.

Use Names instead of Cell References
When you create Named Ranges in Excel, you can use these names instead of the cell references.
For example, you can use =SUM(SALES) instead of =SUM(C2:C11) for the above data set.
• The name ranges are significant because you can put any names in your formulas without
considering cell references/addresses. Furthermore, you can assign the range with any name.
• Create a named range for any data or a named constant and use these names in your formu-
las in place of data references. In this way, you can make your formulas easier to compre-
hend better. A named range is just a human-understandable name for a range of cells in Ex-
cel.
• Using the name range in Excel, you can simplify and comprehend your formulas better. For
example, you can assign a name for a range in an excel sheet for a function, a constant, or
 table data. Once you start using the names in your Excel sheet, you can easily understand
these names.

The Developer Tab

The Developer tab gives you quick access to some of the more advanced features and functions
available in Excel. By default, the Developer tab is hidden, but unhiding it is quick and easy, and
the steps are given below.
The great news is that you only have to follow these steps once. Then, every subsequent time you
open Excel, the Developer tab will be displayed for you.
How to Enable the Developer Tab
The steps to add the Developer tab are super simple.
1. First, we want to right-click on any of the existing tabs on our ribbon.
2. This opens a menu of options, and we want to select Customize the Ribbon.
3. Then, select the Developer checkbox and click OK.

4. The Developer tab is now visible.

What's in the Developer Tab?

After you've turned on the Developer tab, some of the options you’ll find there include:
• Visual Basic – This launches the VB editor. (You can also do this by using the keyboard
shortcut Alt+F11.)
• Macros – We can get a list of all of the macros available to work with. (The corresponding
keyboard shortcut for this is Alt+F8.) We also have the ability to record new macros from
the Developer tab.
• Add-ins – We can insert and manage our Excel and COM add-ins.
• Controls – We can also insert controls into the worksheet, modify control properties, edit
the VB code for a control, and turn the Design Mode on and off.
• XML – Options here include opening the XML Source task pane to manage XML maps,
importing an XML data file, or managing any expansion packs that might be attached to a
sheet we are working with.
 Important excel formulas to create Dashboards

VLOOKUP Function
The VLOOKUP function is a premade function in Excel, which allows searches across columns.
It is typed =VLOOKUP and has the following parts:
=VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

Lookup_value: Select the cell where search values will be entered.

Table_array: The table range, including all cells in the table.
Col_index_num: The data which is being looked up. The input is the number of the column,
counted from the left.
Range_lookup: TRUE if numbers (1) or FALSE if text (0).

SUMIF Function
The SUMIF function is a premade function in Excel, which calculates the sum of values in a range
based on a true or false condition.
It is typed =SUMIF:
=SUMIF(range, criteria, [sum_range])

The condition is referred to as criteria, which can check things like:

• If a number is greater than another number >
• If a number is smaller than another number <
• If a number or text is equal to something =
The [sum_range] is the range where the function calculates the sum.

AVERAGEIF Function
The AVERAGEIF function is a premade function in Excel, which calculates the average of a range
based on a true or false condition.
It is typed =AVERAGEIF and has three parts:
=AVERAGEIF(range, criteria, [average_range])
The condition is referred to as criteria, which can check things like:
• If a number is greater than another number >
 • If a number is smaller than another number <
• If a number or text is equal to something =
The [average_range] is the range where the function calculates the average.

Creating HR Dashboard

Data for HR Dashboard

Attrition Mal Female Emp Produc- Schedule Adher-

e tivity ence
Janu- 2% 67% 33% Janu- 88 Janu- 98%
ary ary % ary
Feb- 3% Febru- 88 Feb- 98%
ruary ary % ruary
Marc 1% March 96 Marc 99%
h % h
April 1% April 94 April 99%
%
May 5% May 95 May 98%
%
June 2% June 91 June 98%
%
July 1% July 88 July 96%
%
Au- 2% Au- 88 Au- 97%
gust gust % gust
Sep- 5% Sep- 88 Sep- 98%
tem- tem- % tem-
ber ber ber
Octo- 5% Octo- 92 Octo- 97%
ber ber % ber
No- 2% No- 94 No- 96%
vem- vem- % vem-
ber ber ber
De- 1% De- 90 De- 96%
cem- cem- % cem-
ber ber ber

Table 1

Open Positions Teamwise Count Salary

Dept 1 2 Dept 1 22 Dept 1 56000

Dept 2 4 Dept 2 12 Dept 2 34000
Dept 3 1 Dept 3 30 Dept 3 87000
 Data for HR Dashboard

Dept 4 0 Dept 4 24 Dept 4 50000

Dept 5 1 Dept 5 8 Dept 5 20000

On the basis of both the above data, HR dashboard can be created in the following ways in ex-
cel. The charts are created in excel through Insert>Charts. First select the data that needs to

be
converted in charts, then goto Insert > Charts. Select the chart layout you like. The X-axis and
Y-axis can be adjusted as required. The charts help to see the datas in the form of pictures
which gives a clear idea for the purpose of analysis
Storyboarding - joining the dots

Storyboards are visual representations of the content you plan to create. In data storytelling, the sto-
ryboarding process is a great way to pull the key message and data elements out of long and com-
plex reports and arrange them in order to tell your data story.
Storyboards are also useful for building group entity and agreements and teams that use them. Tend
to find it easier to make decisions. This is because everyone can get involved, and there’s much
greater level of enthusiasm and commitment.
Storyboards work because they tell a story in a visual way. When people have something to look at,
its much easier to understand concepts, interpret diagram or charts and visualise the future.