Professional Documents
Culture Documents
Michael Joseph Mod1.HRApp1
Michael Joseph Mod1.HRApp1
Module 1, HR Application 1
Dorothy Artis
MOD 1, HR APP 1 2
How could Human Resource metrics (see Exhibits 1.4 & 1.5 on pp. 11-12) be best used
across different organizations? Select two from among the types of organizations listed below
and compare/contrast which metrics would be more useful.
A non-profit organization
A small technology startup company
A Fortune 500 company
A for-profit medical office
Measuring the worth of human capital within an organization is, many times, lost in
most. When organizations view stock and net worth the focus is primarily on the bottom line
and how the organization fairs within the competitive market. Rarely is the human capital value
considered in the value of the organization. Human capital can be measured in metrics. In other
words, measures based on things such as absence rate, benefit cost, and training could be based
According to the text (Saint Leo University, 2015) there are “no perfect metrics” (p. 11).
Metrics are determined by the organization’s strategy. The outlook of the company, such as
whether the focus is on cost or growth, would determine specific metrics to measure. Taking a
closer look at various types of organizations can give insight to how well human resource
Within non-profit organizations, appealing to the board, donors, staff, and other key
is shared, then these same individuals can assist with advocating changes as well as increasing
productivity (Nonprofit HR, 2017). In a non-profit, the human capital is its greatest asset. It is
important to lay focus on the human capital in order to gain the most strategic value while
arming the individuals with what is needed to meet the mission of the organization.
MOD 1, HR APP 1 3
Choosing the right HR metrics will be determined my what is most important to the
organization achieving its goals. It was suggested by Nonprofit HR (2017) there are ten top
metrics which can aide in the success of an organization in providing information to the board.
These include:
1. Offer acceptance rate – this helps determine issues with recruitment process or
2. Temporary employees hired – this alludes to how many are hired throughout the
year and if it is possible to utilize some full-time staff instead of hiring temporary.
3. Diversity new hire ratio – this can assist with tracking the diversity and
4. Average tenure of employees – this aims to focus on how long the employees
have been there which affects the opportunities for the organization.
future of the organization and what the employment needs will be.
6. Average promotion wait time – this can actually help motivate employees to see
7. Promotion ratio – this will answer how many have been promoted and what
8. First year resignation ratio – this can identify issues with recruitment and
9. One-year involuntary turnover ratio – this is similar to number eight and targets
10. Cost of HR per employee – this identifies the cost of salary and benefits per
Non-profit organizations are not that much different than regular corporations. The HR
metrics used to assist them with assessing the current situation as well as the future can be the
same for a regular corporation. It is a key component to ensure the culture and work environment
encourage stakeholders (board, staff, donors) to provide continued support for the organization’s
mission and vision (Morton, 2014). One valuable mention by Morton (2014) was the importance
of focusing the HR metrics on what leadership cares about instead of what HR cares about. It
Important focus for non-profits when defining the HR metrics is not only the top ten
mentioned above which can assist most any organization but questions like:
providing money?
Is our staff equipped with the skills and abilities to answer both short-term and
(Morton, 2014)
MOD 1, HR APP 1 5
Remembering that whatever metrics are measured and provided in a quantitative fashion will be
more appealing. HR metrics can help the non-profit to succeed in both the community and with
Much of what is utilized for a Fortune 500 company is used in the non-profit organization
as well when it comes to HR metrics. CEOs are interested in the bottom line and what affects
that bottom line. According to an article by Min (2017) about 40% of Fortune 500 companies are
slated to go out business over the next ten years. With that in mind, it is imperative for these
companies to hire the right individuals. Looking at recruitment metrics could be crucial to the
failure or success of the company. Quality of hire could be the solely most important metric to
measure for the effectiveness of the recruiting department (Min, 2017). Measuring this metric
New hire retention – increasing in this area is important to increase quality. When
thinking of turnover, the costs are very high when having to replace employees at a large
percentage. Focus on this could help reduce cost which can grab attention of executives.
Time to fill – reflects on the number of days it takes to fill a position from when it is
posted to acceptance. According to this article (Min, 2017) SHRM suggested it takes an
nemployment rates. This may be the easiest metric for a Fortune 500 company as there
are many avenues providing helps and aides for recruiting and job posting.
Hiring satisfaction – this surveys the hiring managers based on the new hires’
company. Quantitative data can assist with this by calculating revenue per employee
MOD 1, HR APP 1 6
which is simply the total revenue divided by the number of employees. This reflects what
Linking these metrics to organizational outcomes assists Fortune 500 companies with
understanding where they stand competitively and for the future. Quantifying the ROI focusing
on the recruiting portion will paint the picture necessary for Fortune 500 companies.
References
Min, J.-A. (2017, April 6). HOW TO LINK RECRUITING METRICS TO BUSINESS
recruiting-metrics-business-outcomes
Morton, L. B. (2014, June 20). HR Metrics for Nonprofits and NGOs. Retrieved from LinkedIn:
https://www.slideshare.net/LeslieBeckbridge/hr-metrics-for-nonprofits-and-ngos
Nonprofit HR. (2017, December 12). Using HR Metrics for Nonprofit Strategy and Planning.
Saint Leo University. (2015). Strategic Issues in Human Resource Management (Custom).