Summary of Key HR Metrics by SupremeLord


									                                                                                           October/November 2010

                                                                        HR Metrics

                                                         Presented By Silvia McCarron, SPHR, Owner

We know that HR Strategy must be tied to business goals and objectives. Thus it is very important to run the HR
function/department like a business and to show the impact it has on the organization. Track internal numbers and
compare to industry averages. Here are some basic measurements that are helpful to put on your HR dashboard with
numbers that should be easily available:

Voluntary Staff Turnover Rate: a high turnover rate could mean that the organizational culture is not healthy, poor
leadership, inadequate recognition, reward or appraisal program, or you may need to reevaluate your recruitment
process due to poorly made hiring matches.
                                               Number of Staff leaving voluntarily
        Voluntary Staff Turnover Rate =        Total no. of employees (period average)

Do the same with involuntary turnover. A high involuntary turnover rate could prompt to examine staffing selection,
performance management processes and supervisory management skills.

Turnover cost: employee turnover is very expensive. Cost calculations must include separation costs, replacement
costs and training costs. A website very helpful for the calculation is:

Absenteeism rate: absenteeism rate can help determine: a problem within a particular department, days that tend to
have higher rates, morale problem as a whole (if higher than industry average), how performance and productivity
are affected, employee satisfaction with current workload. Calculate company wide, as well as within specific
                                # of working days lost in specific period (and department)
        Absenteeism rate =      Total # of staff working days available in that period (and department)

Cost per hire: the costs you incur on recruiting a new employee. Be sure to include all staffing costs (advertisements,
agency fees, referral bonuses, travel expenses, relocation costs, and overhead and admin support, including your
internal recruiter cost). The lower the number, the more efficiently run your staffing function. A high number could
indicate that you need to review your sources and cost-effectiveness of commercial contracts.

                               Total Staffing Costs
       Cost-per-hire =         # of new hires

Retention rate of key employees: clearly define your key employees who are the ones that exceed expectations and
show high performance consistently (at least 3 consecutive review periods). A high retention rate can indicate high
level of employee engagement and satisfaction and positive impact on customers.

       Retention rate of       # remaining at end of time period
        Key employees =        total # identified at start of period               x 100%

                                                Did you know?
           #10 of the Top Ten NH Labor Law violations is failure to have a written safety plan, joint loss
                  management committee and safety summary form filed biennially, as required.

               Contact SM HR Consulting, LLC for all your Human Resource Management needs
                            and log on to our website to find links to helpful resources
                                   SM HR Consulting, LLC PO Box 332 Barrington, NH 03825

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