HR

METRICS
EXAMPLE
S
HR 302
A M I TA B H A G U P TA
 Cost per Hire  Costs per hire Hiring Cycle Time  Time from Hiring Fill Rate  How many
for recruiting, hiring and hiring requisition date to start positions are filled after 6
onboarding. Example: the date. Example: average hiring months? Example: the 6 month

Metrics
average cost per hire was cycle time was 5.8 months.  hiring fill rate was 58%. 
$22,127. 

Related To
Recruiting
Offer Acceptance Rate How Average Performance of New
often does the preferred Hires How well did new hires
candidate accept the position? rate on their first performance
Often broken down by job review? Example: new hires
level. Example: the offer scored an average of 3.6
acceptance rate was 55.5% for (satisfactory) on their first
level 3 executives.  performance reviews.
Metrics Related To Recruiting

First Year Turnover Cost

Rate Average costs related to
Voluntary Termination Rate in Involuntary Termination Rate in workers who left in the first year
First Year How often do new staff First Year How often are new staff including hiring costs, salary,
quit? Example: the first year fired? Example: the first year training and benefits (it is often
voluntary termination rate was involuntary termination rate was assumed that knowledge workers add
13.8%.  8.2%.  little value in the first year).
Example: average first year
turnovers cost $90,398. 

Employees Recruited from Key

Competitors In some industries
Manager Satisfaction with
Manager Satisfaction with New employees that are recruited from
Recruitment Process Average
Hires Average manager satisfaction key competitors tend to have higher
manager satisfaction with the
with new hires was 65.2%.  productivity. Example: 131
recruitment process was 47.9%. 
employees were recruited from key
competitors.  
 Metrics Related to Productivity

Profit per People Dollar  How

Profit per Employee much profit do you earn for $1
Revenue per Employee Revenue
(PPE) Profit per employee was spent on employees and
per employee was $402,398. 
$103,890  contractors. Example: profit per
people dollar was $0.56. 

Business Specific Productivity

Salary Increase vs. Revenue
Metrics Productivity should be
Increase  When your spend more
measured in terms that are
Average Days Absent Average on employees is there payback?
relevant to your business. Call
days absent was 13.4 days.  Example: average salary
center example: call volume per
increased at 4.2% while revenue
employee increased 4% to 17.5
increased at 3.2%. 
calls per hour. 
 Average Performance Rating  How well did employees score in
performance reviews? Example: average performance rating was
3.8 (high satisfactory). 

Metrics Problem Employee Rate How many employees failed performance

reviews? Example: the problem employee rate was 4.5%. 

Related To Rehabilitation Rate for Problem Employees How many problem

Performance employees are rehabilitated within 6 months? Example: 57% of
problem employees are rehabilitated. 
Managemen Termination Rate for Problem Employees How many problem
t employees are terminated? Example: 22% of problem employees
were terminated. 

Average Cost to Terminate Employee How much does it cost to

fire someone (including legal, administration and severance)?
Example: the average cost to terminate an employee was $33,090. 
 Average Salary  Often broken down by job level,
department or position. Example: the average salary for
a level 3 executive was $214,000. 

Salary Deviation (by job level) What is the range

between the top and bottom pay for a job level?
Example: the salary deviation for a level 3 executive was
$109,876. 
Cost of Benefits as a Percentage of Salary How much
are you spending on benefits relative to salary?
Example: average cost of benefits was 39.7% of salary. 
Metrics
Related To Cost of Benefits as a Percentage of Revenue Average
cost of benefits was 3.7% of revenue. 
Costs
 KEY EMPLOYEE KEY EMPLOYEE KEY EMPLOYEE
SATISFACTION RETENTION COST RATE HOW
RATE HOW SATISFIED RATE THE MUCH DO KEY
ARE YOUR MOST RETENTION RATE FOR EMPLOYEES COST
IMPORTANT KEY EMPLOYEES WAS (INCLUDING SALARY,
EMPLOYEES? KEY 82.3%.  BENEFITS, TRAINING
EMPLOYEES OFTEN AND INCENTIVES)?
INCLUDES EXAMPLE: THE
EXECUTIVES AND TOP AVERAGE COST FOR A
PERFORMERS. LEVEL 3 KEY
EXAMPLE: KEY EMPLOYEE WAS
EMPLOYEES HAD A $405,098. 
SATISFACTION RATE
OF 89.7%. 

Metrics Related
To Key KEY EMPLOYEES
ELIGIBLE FOR
BENCH STRENGTH  A
SUCCESSION
KEY EMPLOYEE
TURNOVER BY

Employees and RETIREMENT HOW

MANY KEY
EMPLOYEES ARE
PLANNING METRIC
THAT MEASURES THE
DEPTH OF THE
REASON CODE WHY
DO KEY EMPLOYEES
LEAVE? REASON

Star Performers ELIGIBLE FOR

RETIREMENT IN THE
NEXT 5 YEARS?
SUCCESSOR POOL
FOR A KEY POSITION.
EXAMPLE: THERE ARE
CODES INCLUDE
THINGS LIKE
COMPENSATION,
EXAMPLE: 15.8% OF 14 QUALIFIED PERSONAL REASONS,
KEY EMPLOYEES ARE SUCCESSORS FOR BENEFITS,
ELIGIBLE FOR LEVEL 1 PROFESSIONAL
RETIREMENT IN THE EXECUTIVES.  DEVELOPMENT ETC...
NEXT FIVE YEARS.  EXAMPLE: 17% OF
KEY EMPLOYEES
Metrics Related to HR Pipeline

1. Employee Salary by Level Average salary broken down by

level. Example: average salary for level 8 staff is $48,765. 
2. Number of Employees by Band There are 10,876 level 8
staff. 
3. Employee Productivity by Position This is a business
specific metric. Biomedical research example: the average
patents per senior researcher was 0.16. 
4. Attrition by Level The attrition rate for level 8 staff was
17.3%. 
• * Calculating your company's employee attrition rate allows
you to determine the percentage of employeesthat left your
business over a specified period of time, usually one
year. Attrition includes all employees who leave the
company, whether the leaving was voluntarily and
involuntarily.
 1. Involuntary Termination Rate The involuntary termination
rate was 2.2%. 
2. Voluntary Termination Rate  The voluntary termination rate
was 21.1%. 
3. Average Retention Period  Often broken down by
Metrics Related department, manager or position. Example: the average
retention period in the sales department was 3.4 years. 

To Employee 4. Employees Eligible for Retirement  28% of employees

become eligible for retirement in the next 5 years. 

Retention
5. Employees Eligible for Early Retirement  Not all employees
eligible for early retirement will retire — there is often room
to negotiate. Example: 30.2% of employees are eligible for
early retirement in the next 10 years. 
6. Average Tenure  Average tenure is 13.6 years. 
7. Voluntary Termination By Reason Code  Why are staff
leaving? Example: 8% of staff who quit said it was because of
working conditions. 
 Metrics Related To Employee Satisfaction

Opportunities for
Compensation
Job Satisfaction Average Advancement 43% of
Satisfaction 3% of
employee job satisfaction employee say they have
employees say they are
was 67%.  opportunities for
satisfied with compensation. 
advancement. 

Training and Development

Net Promoter Rate 65% of HR Department
Effectiveness  33% of
employees say they would Satisfaction Rate 34% of
employees say that training
recommend our products to employees are satisfied with
and development programs
friends and family.  the HR department. 
are effective. 
Metrics Related To Employee Satisfaction
Management Effectiveness 16% of employees are satisfied with executive management. 

Clarity of Company Vision 38% of employees believe the company has a clear vision. 

Equal Opportunities  89% of employees say there are equal opportunities for advancement. 

Work / Life Balance 44% of employees say they enjoy work / life balance. 

Employee Commitment Index Employees are asked questions that gauge their commitment to the
company. Example: 16% of employees say they will remain at the company for more than 5 years. 
 Market Opportunity Index  Employee
perceptions of opportunities elsewhere.
Example: 67% of employees believe our
competitors offer higher compensation. 

Metrics
Related To Employee Complaints  2.1% of employees

Employee made at least one complaint to HR. 

Satisfaction
Employee Lawsuits 6 employees and
former employees sued the company. 
Metrics Related To Training and Development

01 02
Training Cost per Training per Employee The
Employee Average training average employee completed
and development costs were 14.7 hours of training. 
$3,454 per employee. 
 • Employers track diversity
statistics for regulation and
compliance. 
Metrics Related 1.Gender Example: 54% of level 3
executives are women. 
To Diversity
2.Disabilities  Example: 6.3% of
and employees have a disability. 
Compliance
QUESTIONS
& ANSWERS