Types of HR Metrics

Calculate the following

Direct labor hourly rate

Employees of an organization work 40 hours per week, earning $13 per hour.
They also get $100 in fringe benefits and $50 in payroll taxes. Calculate the
hourly rate of employees.

Solution
Total benefits and taxes= $100+ $50= $150
$150/ 40 = 3.75
Hourly rate of employees= $3.75+ $13= $16.75.
Calculate the following
Labor cost per unit

The hourly rate is $16.75, and it takes 0.1 hours to manufacture one unit of a
product. Calculate the direct labour cost per unit

Solution
$16.75 x 0.1= $1.68
 Cost per Hire
Cost per hire = Total recruitment cost / Total number of hires =
Total internal cost + Total external cost / Total number of hires
Internal Recruiting Costs External Recruiting Costs
Internal recruiting costs are any expenses relating to External recruiting costs are any expenses related to
the internal employees of a company and the costs of recruiting that do not fall under internal recruitment
the recruiting process. costs.
• Advertising costs (Job boards, PPC)
• Employee referral bonuses (cash or prizes) • Recruiting software
• Recruiter salaries • Recruiting events
• Interview costs (The number of hours times hourly • Non-internal recruiter fees (Agency fees)
salary of involved employees) If a candidate requires a flight for an interview, or
money for relocation then this should also be
included in external recruiting costs.

Good CPH: The Society for Human Resource Management places the CPH average at $4,425
Cost per Hire Benchmarks
Benchmarks to know if the cost per hire is high, low, or average
Industry benchmarks
$4129: according to SHRM
$4000: according to Bersin
$3400: cost for an entry-level employee
16% of annual salary: cost for a 30K or less job
20% of annual salary: cost for a 75K or more job

Recruiting channel source of hire benchmarks

$1248: Major job board  
$803: Niche job site
$513: Job aggregator  
$616: Social network
$285: Glassdoor  
Types of HR Metrics
Time to fill or hire
It is the average number of calendar days from the date a job
requisition is approved to the date an offer is accepted by a hire
Time to fill = (Total days to fill)/ Total hires

Offer Acceptance Rate

It is the ratio of the total number of offers which have been accepted
by the selected candidates to the total number of candidates to whom
offers were extended
Types of HR Metrics
Career Path Ratio
This ratio tells about the percentage of upward movement of employees
within an organization
Career path Ratio= (Total promotions)/ (Total promotions+ Total transfers)
Cost per hire
This ratio tells about the average amount spent on hiring each employees
Cost per hire= (Internal recruitment costs+ External recruitment costs)/
Total number of hires
Types of HR Metrics
Headcount Ratio
This ratio tells about the number of employees per HR staff person
HR headcount ratio= Headcount/HR headcount