HR Calculations and Measurements
The best and most concise way for the HR department to measure its effectiveness in an
organization is through HR calculations and measurements. These numbers provide meaningful
data used to improve business management and to better meet the needs of the employees.
LaborLawCenter™ provides an endless array of HR calculations you can use spanning absence rate,
compensation, recruitment, training, tenure and more. Some calculations are more important than
others depending on your organization’s goals.
These samples are designed with the intent of providing businesses with a general template to use. Please note that general legal
information is not the same as legal advice—the application of law to the company’s specific circumstances. These samples are for
informational and instructive purposes only and may not be suited to every situation.
HR Calculations: Time To Fill
Do you know how long it typically takes your company to fill a vacancy? Will the
standard two-week notice period give you enough time to hire a replacement?
(Here’s a hint—probably not.) According to the Society for Human Resource
Management, the average time to fill is 37 days. The specific length of time varies
widely by industry. Retailers typically take less time, with an average of 26 days, and
transportation takes longer, averaging approximately 50 days.
Calculating the average time to fill—from the point at which HR is given a request to
begin the recruitment, to the day the new hire walks through the front doors—helps
you plan for known vacancies and potential coverage issues. Analyzing the time to
fill for specific functions—for example, the background check—also helps identify
bottlenecks in the process and business practices that could be improved.
1. Obtain the number of new recruits over a defined period of time, such
as a 12-month period.
2. Obtain the number of calendar days it took to fill each of those
positions—from the date the recruitment was requested to the new
hire’s start date—and add these together to get a total number of days.
3. Divide the total number of days by the total number of recruits.
4. The number represents the average time to fill
Repeat this process for different parts of the recruitment process, to identify
potential problem areas. For example, calculate the average time between making
the conditional offer and completion of the criminal record check. Or calculate the
time between HR receiving the request and the recruitment advertisement being