HR Metrics + Formulas

Question 1

Cost-Benefit Analysis

Answer 1

Ratio that determines how a certain activity and related costs impact the org’s profits - maximize benefits, minimize cost.

COST BENEFIT RATIO = value of projected benefits / cost

Question 2

Cost-Benefit Analysis

Answer 2

COST BENEFIT RATIO = value of projected benefits / cost

Ratio that determines how a certain activity and related costs impact the org’s profits - maximize benefits, minimize cost.

Question 3

Cost Per Hire

Answer 3

COST PER HIRE = (total internal + external recruiting costs) / total # of hires in a given time frame

Avg. amount you spend on new hires in a given time period.

• Measures efficiency of org’s recruiting process.

Question 4

Selection Ratio

Answer 4

SELECTION RATIO = # of hired candidates / total # of candidates

Low ratio: org can be more selective
High ratio: org need not be as selective

Question 5

Turnover

Answer 5

Referred to when an employee leaves the organization.

Question 6

Turnover Rate

Answer 6

MONTHLY TURNOVER RATE = (# of those left during month/avg. # of employees during month) x 100

• Avg. # can be found out by adding amount of employees @ beginning of month + end of month and divide by 2.

Question 7

Innovation Rate

Answer 7

INNOVATION RATE = (revenue from the innovations / total revenue) x 100

• Measures if new innovations are profitable and competitive in the market against other orgs.

Question 8

Grievance

Answer 8

Complain of unfair treatment by an employee to an employer regarding a violation.

• Harassment, discrimination, safety, workplace relationships, org. changes, etc.

Question 9

Tracking Grievances

Answer 9

• Doing based on subject matter can help implement quicker action.
• Shows whether or not they are rising or falling.