HR-related equations and formulas Flashcards
(24 cards)
📊 Recruitment & Hiring Metrics
1.How is Cost per Hire (CPH) calculated?
(Internal Recruiting Costs + External Recruiting Costs) ÷ Total Number of Hires
***Use when you want to calculate the total cost incurred in hiring a new employee, including both internal and external recruiting expenses.
- Time to Fill
Days from Job Requisition to Offer Acceptance
***Use when measuring the efficiency of the recruitment process, from the moment a job requisition is created to when the candidate accepts the offer.
- Time to Hire
Days from Candidate Application to Offer Acceptance
***Use to track how long it takes from when a candidate applies to when they accept a job offer, helping gauge the speed of the hiring process.
- Offer Acceptance Rate
(Offers Accepted ÷ Offers Made) × 100
***Use when evaluating how successful your recruitment efforts are by comparing the number of job offers accepted to the total number of offers made.
- Yield Ratio
(Number of Qualified Applicants ÷ Total Applicants) × 100
***Use to assess the effectiveness of your sourcing methods by calculating the percentage of qualified candidates out of total applicants.
- Applicant-to-Hire Ratio
Total Number of Applicants ÷ Number of Hires
***Use when determining the efficiency of your hiring process by comparing the total number of applicants to the actual hires made.
🔁 Retention & Turnover Metrics
7. Employee Turnover Rate
(Number of Separations ÷ Average Number of Employees) × 100
***Use when you want to measure the overall rate of employee separations in relation to your average workforce size.
- Voluntary Turnover Rate
(Voluntary Separations ÷ Average Number of Employees) × 100
***Use to assess the rate at which employees leave the organization voluntarily, helping to identify potential retention issues.
- Involuntary Turnover Rate
(Involuntary Separations ÷ Average Number of Employees) × 100
***Use to evaluate the rate at which employees are terminated involuntarily, which can indicate organizational or management issues.
- Retention Rate
[(Employees at End of Period − Separations) ÷ Employees at Start] × 100
***Use when measuring the proportion of employees who remain with the organization over a set period, indicating the effectiveness of retention strategies.
🕒 Attendance & Productivity Metrics
11. Absenteeism Rate
(Total Days Absent ÷ Total Available Workdays) × 100
***Use to track how frequently employees are absent from work, which could indicate potential issues with engagement or health.
- Productivity Rate
Revenue or Output ÷ Number of Employees
***Use to measure the output or revenue generated per employee, helping evaluate the overall efficiency of the workforce.
💰 Compensation & Benefits Metrics
13. Compensation Ratio (Compa-Ratio)
(Employee’s Salary ÷ Midpoint of Salary Range) × 100
***Use when comparing an employee’s salary to the market midpoint to ensure your compensation practices are competitive and equitable.
- Benefit Cost per Employee
Total Benefit Costs ÷ Total Number of Employees
***Use when analyzing the average cost of benefits provided to each employee, helping to assess the financial impact of your benefits programs.
- Health Care Expense per Employee
Total Health Care Costs ÷ Number of Employees
***Use to calculate the average health care cost per employee, which helps manage and optimize health benefits expenses.
📚 Training & Development Metrics
16. Training ROI
[(Monetary Benefits – Training Costs) ÷ Training Costs] × 100
***Use to evaluate the return on investment for training programs by comparing the benefits gained against the costs incurred in training.
- Training Effectiveness Index (if provided data)
(Post-training Performance − Pre-training Performance) ÷ Pre-training Performance × 100
***Use to assess how effective a training program was by comparing performance before and after the training.
- Training Cost per Employee
Total Training Costs ÷ Total Number of Employees Trained
***Use when measuring the average cost of training per employee, helping to manage training budgets and assess cost-efficiency.
💼 Organizational & Strategic HR Metrics
19. HR-to-Employee Ratio
Number of HR Staff ÷ Total Number of Employees
***Use to assess the adequacy of HR staffing by comparing the number of HR staff to the total number of employees.
- Revenue per Employee
Total Revenue ÷ Total Number of Employees
***Use to evaluate the overall productivity and efficiency of your workforce in terms of revenue generation.
- Human Capital ROI
(Revenue − Operating Expenses − Compensation Costs) ÷ Compensation Costs
***Use to assess the financial return on investment in human capital by comparing revenue and operating costs to compensation expenses.
- Promotion Rate
(Number of Promotions ÷ Total Number of Employees) × 100
***Use to measure the proportion of employees promoted within the organization, helping to track career growth opportunities and internal development
- Internal Mobility Rate
(Internal Hires ÷ Total Hires) × 100
***Use to gauge how often employees are hired for new roles within the organization, indicating the strength of your internal mobility practices.
- Engagement Index
The Engagement Index does not have one single standard formula like turnover or cost-per-hire because it is typically derived from employee survey data. However, here’s a commonly accepted method used in HR analytics:
✅ Engagement Index Formula:
Engagement Index=(Number of Favorable ResponsesTotal Responses)×100
Engagement Index=(Total ResponsesNumber of Favorable Responses)×1
***Use to measure employee engagement levels based on survey data or other indicators, providing insights into the overall health of the organization’s work culture.
