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HR 302 HR Metrics Examples

The document provides many examples of HR metrics that can be used to measure performance in areas like recruitment, revenue, and overall HR effectiveness. It discusses metrics for time to hire, cost per hire, early turnover, revenue per employee, billable hours, engagement rating, HR costs, turnover, and absenteeism. The various metrics can provide insights for improving processes and business decisions.

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Amitabha Gupta
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135 views

HR 302 HR Metrics Examples

The document provides many examples of HR metrics that can be used to measure performance in areas like recruitment, revenue, and overall HR effectiveness. It discusses metrics for time to hire, cost per hire, early turnover, revenue per employee, billable hours, engagement rating, HR costs, turnover, and absenteeism. The various metrics can provide insights for improving processes and business decisions.

Uploaded by

Amitabha Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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HR

METRIC
S
HR 301: MBA 3RD
SEMESTER
A M I TA B H A G U P TA
EXAMPLE
S OF HR
METRICS
HR metrics examples in recruitment

Time to hire (time in days)


An important metric for recruitment is the
‘time to hire’. This is the number of days
There’s also the time to fill metric. This
between a position opening up and a
metric takes the same starting point but
candidate signing the job contract. It’s an
takes the date the candidate starts
excellent way to measure the efficiency of
working as the end point.
the recruitment process and provides
insight into the difficulty of filling a
certain job position.
HR metrics examples in
recruitment

• Cost per hire (total cost


of hiring/the number of
new hires)
Like the time to hire, the
‘cost per hire’ metric
shows how much it costs
the company to hire new
employees. This also
serves as an indicator of
the efficiency of the
recruitment process.
HR metrics examples
in recruitment
• Early turnover (percentage of recruits
leaving in the first year)
This is arguably the most important
metric to determine hiring success in a
company.
This early leaver metric indicates whether
there is a mismatch between the person
and the company or between the person
and his/her position. Early turnover is also
very expensive. It usually takes 6 to 12
months before employees have fully
learned the ropes and reach their
‘Optimum Productivity Level’. According to
a 2014 Oxford Economics report, the lost
output cost over this period averages
£30,000 ($43,700) for new hires.
HR metrics examples
in recruitment
• Time since last
promotion (avg time in
months since last
internal promotion)
This rather
straightforward metric is
useful in explaining why
your high potentials leave.
HR metrics examples related to
revenue

• Revenue per employee


(revenue/total number of
employees)
This metric shows the
efficiency of the organization
as a whole. The ‘revenue per
employee’ metric is an
indicator of the quality of
hired employees.
• Performance and potential (the 9-
box grid)
The 9-box grid appears when
measuring and mapping both an
individual’s performance and HR metrics
potential in three levels. This model
shows which employees are examples
underperformers, valued specialists,
emerging potentials or top talents. related to
This metrics is great for
differentiating between, for revenue
example, wanted and unwanted
turnover.
• Billable hours per employee
This is the most concrete example of
a performance measure, and it is
especially relevant in professional
service firms (e.g. law and HR metrics
consultancy firms). Relating this kind
of performance to employee examples
engagement or other input metrics
makes for an interesting analysis. related to
Benchmarking this metrics between
different departments and revenue
managers/partners can also provide
valuable insights.
HR metrics examples
related to revenue
• Engagement rating
An engaged workforce is a productive
workforce. Engagement might be the
most important ‘soft’ HR outcome.
People who like their job and who are
proud of their company are generally
more engaged, even if the work
environment is stressful and pressure
is high. Engaged employees perform
better and are more likely to perceive
stress as an exciting challenge, not as
a burden. Additionally, team
engagement is an important metric
for a team manager’s success.
Other HR metrics examples

• Cost of HR per employee


(e.g. $ 600)
This metric shows the cost
efficiency of HR expressed in
dollars.
Other HR metrics
examples
• Ratio of HR professionals
to employees (e.g. 1:60)
Another measure that shows
HR’s cost efficiency. An
organization with fully
developed analytical
capabilities should be able
to have a smaller number of
HR professionals do more.
• Ratio of HR business
partners per employee
(e.g. 1:80)
A similar metric to the
previous one. Again, a set of Other HR
highly developed analytics metrics
capabilities will enable HR to
measure and predict the examples
impact of HR policies. 
Other HR metrics examples
• Turnover (number of leavers/total population in the
organization)
This metric shows how many workers leave the company in a given
year. When combined with, for instance, a performance metric, the
‘turnover’ metric can track the difference in attrition in high and low
performers.
• Preferably you would like to see low performers leave and high
performers stay. This metric also provides HR business partners
with a great amount of information about the departments and
functions in which employees feel at home, and where in the
organization they do not want to work. Additionally, attrition could
be a key metric in measuring a manager’s success.
Other HR metrics
examples
• Effectiveness of HR software
This is a more complex metric.
Effectiveness of, for instance,
learning and development
software are measured in the
number of active users, average
time on the platform, session
length, total time on platform per
user per month etc. These
metrics enable HR to determine
what works for the employees
and what does not.
Other HR metrics
examples
• Absenteeism (absence
percentage)
Like turnover, absenteeism is also a
strong indicator of dissatisfaction
and a predictor of turnover. This
metric can give information to
prevent this kind of leave, as long-
term absence can be very costly.
Again, differences between
individual managers and
departments are very interesting
indicators of (potential) problems
and bottlenecks.
Impact of HR Metrics in
Business Decisions
• There are a lot of different
examples of HR metrics.
While some metrics are
easier to implement than
others, all of them provide
insights into the workforce
and HR. Combining these
insights will prove vital for
making substantiated
decisions with proven
impact. 
QUESTIONS
AND
ANSWERS

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