THE ULTIMATE HR CHEAT SHEET

KEY FUNCTIONS OF HR HR FOUNDATIONS HR KPI’s HR METRICS

Absence Rate: Measures the frequency of

Human resource planning Workforce strategy: HR should lead Recruitment and retention
employee absences, indicating potential
01 Ensures the organization has the right people in the right in creating a strategic plan for workforce issues with workplace satisfaction or health.
roles at the right time to achieve its strategic goals. needs, including staffing, pay, benefits, Time to Hire: Measures the number of days from
and performance management. Absence Cost: Evaluates the financial impact a candidate applying to accepting a job offer.
Recruitment and selection of employee absences on the organization.
02 Attracts and chooses the best candidates to meet the Organizational design: HR helps
Benefits Satisfaction: Assesses employee
Cost per Hire: Calculates the total cost involved
in hiring a new employee.
organization's needs and improve productivity. manage and implement a company’s
contentment with benefits, which can reduce
strategy, influencing its organizational
turnover. Quality of Hire: Assesses the value a new
Performance management structure and culture.
employee brings to the organization through their
03 Maintains productivity and engagement through
HR services: HR is responsible for
Employee Productivity Rate: Indicates the
efficiency and effectiveness of employees'
job performance, goal contributions, cultural fit,
clear goals, feedback, and continuous evelopment. and retention rate.
researching and implementing services work performance.
Learning and development that support both employees and First-Year Attrition: The percentage of new hires
Employee Satisfaction Index: Gauges overall leaving within the first year.
04 Equips employees with the necessary skills for business operations, like self-service
tools and assistance programs.
employee happiness and satisfaction within
future organizational needs and personal growth. the company. Turnover: The percentage of employees leaving
the company in a given period.
Career planning HR technology: HR drives the Employee Engagement Index: Reflects the

05 Aligns employee ambitions with organizational goals to

adoption of cost-effective technology
solutions to enhance HR services,
level of employee involvement and
enthusiasm for their work.
Time Since Last Promotion: Tracks the average
time in months since the last internal promotion.
enhance engagement, succession planning, and retention.
payroll, compliance, and other functions.
Employee Innovation Index: Measures the
Function evaluation extent to which employees contribute Revenue-related
06 Ensures fair compensation and strategic alignment by
PERFORMANCE
innovative ideas and solutions.
assessing job roles based on their value and requirements. Revenue per Employee: Indicates organizational
MANAGEMENT Internal Promotion Rate: Shows the
organization's ability to advance employees
efficiency by dividing total revenue by the
Rewards number of employees.
internally, reducing hiring costs.
07 Encompasses compensation, benefits, career opportunities, Methods Performance and Potential: Uses qualitative and
and work-life balance to attract and retain employees. Net Promoter Score (NPS): Determines how quantitative measures, like the 9-box grid, to
Goal setting: Use SMART (Specific, likely employees are to recommend the assess and map employee performance and
Industrial relations Measurable, Achievable, Relevant,
organization to others. potential.
08 Maintains positive interactions with labor unions to Time-bound) goals to give employees clarity, Labor Cost Percentage: Evaluates the Billable Hours per Employee: Measures the
manage conflicts and ensure smooth operations. motivation, and alignment with proportion of organizational costs attributed number of hours employees spend on billable
organizational objectives. to employee expenses. tasks.
Employee participation and communication
09 Keep employees informed, engaged, and heard on Continuous performance Quality of Hire: Indicates the effectiveness of
Other HR metrics
relevant topics. management: Engage in regular the recruitment process by measuring new
hire performance.
discussions and real-time feedback to build
Health and safety Cost of HR per Employee: Calculates the total HR
trust, address issues promptly, and foster a Turnover Rate: Tracks the rate at which operations cost divided by the total number of
10 Creates a safe work environment and integrate growth-oriented culture. employees leave the organization, impacting employees.
safety into the company culture. stability and costs.
Management by Objectives (MBO): HR to Employee Ratio: Shows the number of HR
Total wellbeing Align employee goals with organizational Involuntary Turnover Rate: Measures the professionals relative to the total number of
11 Supports employees' mental, physical, and financial objectives, assess performance through
data, and provide feedback to guide
number of employer-initiated separations,
reflecting workforce management
employees.
health to enhance performance and engagement. effectiveness. Ratio of HR Business Partners per Employee:
development and identify skill gaps.
Similar to HR to employee ratio, focusing on the
Administrative responsibilities Voluntary Turnover Rate: Assesses the rate at strategic support provided by HR business
12 Includes managing personnel procedures and HR 360-degree feedback: Collect feedback
from managers, peers, and self-evaluations
which employees choose to leave, indicating
job satisfaction levels.
partners.
information systems for efficient operations.
to offer a comprehensive view of Effectiveness of HR Software: Assesses HR
Regrettable Attrition Rate: Evaluates the software by active users, average time on the
performance, supporting training and
departure of employees the organization platform, session length, and software retention.
development. regrets losing, highlighting potential retention
EMPLOYEE RELATIONS Performance appraisals: Conduct
issues. Absenteeism: Indicates dissatisfaction and
potential turnover by calculating the number of
regular, structured evaluations to review Training Effectiveness: Measures the success absent days divided by total working days.
employee performance, set career of training programs in achieving their
Tips for an effective strategy intended outcomes.
development paths, and boost morale and Training Expenses per Employee: Quantifies the
Understand the psychological contract retention. average amount spent on employee training.
90-Day Quit Rate: Indicates the percentage of
Fulfill implicit employee-employer expectations to maintain trust
Coaching: Focus on one-to-one mentoring new hires who leave within the first three Overtime Expenses: Calculates additional costs
and satisfaction.
to develop specific skills and goals, incurred from employees working beyond regular
Ensure honest communication hours.
encouraging employees to find their own
Foster open, timely communication and gather employee
solutions and fostering autonomy. Engagement Rating: Measures employee
feedback through surveys.
COMPENSATION & BENEFITS engagement, often expressed as employee net
Promote the company's vision promoter score (eNPS), indicating job satisfaction
Regularly share the company’s goals and values to show RECRUITMENT Total rewards: Encompasses all benefits,
and productivity.
employees how their work contributes to the bigger picture. & SELECTION incentives, and perks an employer offers,
Employee Satisfaction: Evaluates happiness and
detailed in a total rewards statement (TRS).
Trust people contentment with job roles and the workplace
Empower employees with clear expectations and trust in their The recruitment process Gross wages: The total taxable earnings
through surveys and questionnaires.
decision-making. before taxes and deductions, including
Leadership Effectiveness: Gauges leadership
Improve recognition and appreciation
Preparing: overtime, tips, and bonuses.
impact on employee performance and morale
Regularly acknowledge employees' efforts with public praise and • Vacancy intake with the hiring manager through 360-degree feedback on various
• Write job description Net pay: The take-home income after all
celebrations to boost motivation and engagement. competencies.
deductions and taxes are subtracted.
• Creating job adverts
Invest in your people
Fixed pay: A set amount paid regularly,
Provide development opportunities and wellness programs, Sourcing:
offering flexibility for work-life balance and personal growth. regardless of hours worked or performance,
• Sourcing candidates
• Checking the existing talent pool
often including additional allowances. BEST HR CERTIFICATIONS
Foster DEIB
Promote a fair and inclusive workplace through equitable policies • Keeping the hiring manager informed Differential pay: Compensates employees
and training that support diversity and inclusion. for working extra hours or undesirable shifts
• Academy to Innovate HR (AIHR)
Screening: beyond their contracted hours.
Consider legal aspects of employee relations • Screening resumes
Ensure compliance with legal standards to protect employees' Biweekly pay: Received every two weeks, • Professional in Human Resources
• Phone screening
rights and avoid legal issues. resulting in about 26 paychecks annually. (PHR) by HRCI
• Giving a realistic job preview
Monitor employee relations Monthly pay period: Employees are paid • SHRM Certified Professional and SHRM
Recruiting: once a month, totaling 12 paychecks per
Use metrics and feedback to assess and improve employee Senior Certified Professional by SHRM
relations. Leveraging technology for effective tracking and • The job interview year.
management. • An assessment
Merit increase: A salary raise awarded based • Strategic HR Leadership (SHRL) by
• References and background check
Monitor employee relations
• The hiring decision on employee performance or achievement. Human Capital Institute
Develop clear policies for fair treatment and proactive conflict
• Job offer and contract
resolution. Broadbanding: Merges similar job • Certified Human Resources
classifications into broader pay bands, Professional (CHRP) by HRPA
reducing the number of pay grades.
• Talent Management Practitioner by
SKILLS EVERY HR PROFESSIONAL NEEDS Gainsharing: Provides employees a share of
Talent Management Institute
company profits from performance
improvements they contribute to.
HR-specific skills Soft skills Business acumen Digital & data literacy • Certified Professional in Talent
Total target cash: Includes the full cash Development (CPTD) by ATD
▪ HRM knowledge & expertise ▪ Proactivity ▪ Coaching ▪ Being analytical & compensation an employee can earn by
▪ Recruitment & selection ▪ Communication skills ▪ Advising data-driven meeting performance goals, including base • Human Resource Information
▪ Administrative expertise ▪ Active listening ▪ Commercial awareness ▪ HR reporting skills salary and bonuses. Professional (HRIP) by IHRIM
▪ Cultural awareness & sensitivity ▪ Teamwork ▪ Managing priorities ▪ Command of technology
Pay mix: The ratio of fixed to variable pay in • Certified HR Manager (CHRM) by HR
▪ Wellbeing evangelism ▪ HR strategy creation &
an employee’s compensation, often used to
▪ Employee experience expertise execution incentivize performance. University

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