HR Metrics With Examples

by Anna Mar

Human Resources (HR) manages people including hiring, onboarding, performance, firing, offboarding, benefits, development and compensation. But who manages HR? Executive oversight of HR is key to cost management, productivity, business development and competitiveness. Regular reporting of HR metrics is a good tool for managing any Human Resources department. The following 70 HR metrics are illustrative. The metrics you choose should be closely aligned with your industry, business and strategy.

HR Cost
1. HR Cost per Employee How much is the company spending on HR? Example: HR cost per employee was $590. 2. HR Cost vs Revenue HR cost was 0.54% of revenue.

HR Responsiveness
3. Average Response Time (ticket open with HR Employees open tickets with HR to ask questions, raise issues and provide feedback. How fast is HR's initial response? Example: average ticket response was 12.3 minutes.

!. Average Resolution Time (ticket open with HR Average ticket resolution time was 34.5 hours.

Issue Management
". HR Complaints #y Category How many complaints were logged with HR? Complaint metrics are often broken down by category (e.g. harassment). Example: 12 complaints of harassment. $. Average Complain Resolution Time How long does it take to resolve a complaint? Example: average complaint resolution time was 13 business days. %. &egal Costs Legal costs related to HR issues. Example: HR related legal costs were $45,459 for the quarter. '. (ettlement Costs an) *enalties Costs of fines and legal settlements related to HR issues. Example: HR related settlements and penalties totalled $1.2 million for the quarter.

Recruiting
+. Cost per Hire Costs per hire for recruiting, hiring and onboarding. Example: the average cost per hire was $22,127.

1,. Hiring Cycle Time Time from hiring requisition date to start date. Example: average hiring cycle time was 5.8 months. 11. Hiring -ill Rate How many positions are filled after 6 months? Example: the 6 month hiring fill rate was 58%. 12. .//er Acceptance Rate How often does the preferred candidate accept the position? Often broken down by job level. Example: the offer acceptance rate was 55.5% for level 3 executives. 13. Average *er/ormance o/ 0ew Hires How well did new hires rate on their first performance review? Example: new hires scored an average of 3.6 (satisfactory) on their first performance reviews. 1!. 1oluntary Termination Rate in -irst 2ear How often do new staff quit? Example: the first year voluntary termination rate was 13.8%. 1". 3nvoluntary Termination Rate in -irst 2ear How often are new staff fired? Example: the first year involuntary termination rate was 8.2%. 1$. -irst 2ear Turnover Cost Rate Average costs related to workers who left in the first year including hiring costs, salary, training and benefits (it is often assumed that knowledge workers add little value in the first year). Example: average

first year turnovers cost $90,398. 1%. 4anager (atis/action with 0ew Hires Average manager satisfaction with new hires was 65.2%. 1'. 4anager (atis/action with Recruitment *rocess Average manager satisfaction with the recruitment process was 47.9%. 1+. Employees Recruite) /rom 5ey Competitors In some industries employees that are recruited from key competitors tend to have higher productivity. Example: 131 employees were recruited from key competitors.

Productivity
2,. Revenue per Employee Revenue per employee was $402,398. 21. *ro/it per Employee (**E Profit per employee was $103,890 22. *ro/it per *eople 6ollar How much profit do you earn for $1 spent on employees and contractors. Example: profit per people dollar was $0.56. 23. Average 6ays A#sent Average days absent was 13.4 days. 2!. 7usiness (peci/ic *ro)uctivity 4etrics

Productivity should be measured in terms that are relevant to your business. Call center example: call volume per employee increased 4% to 17.5 calls per hour. 2". (alary 3ncrease vs. Revenue 3ncrease When your spend more on employees is there payback? Example: average salary increased at 4.2% while revenue increased at 3.2%.

Performance Management
2$. Average *er/ormance Rating How well did employees score in performance reviews? Example: average performance rating was 3.8 (high satisfactory). 2%. *ro#lem Employee Rate How many employees failed performance reviews? Example: the problem employee rate was 4.5%. 2'. Reha#ilitation Rate /or *ro#lem Employees How many problem employees are rehabilitated within 6 months? Example: 57% of problem employees are rehabilitated. 2+. Termination Rate /or *ro#lem Employees How many problem employees are terminated? Example: 22% of problem employees were terminated. 3,. 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.

Costs
31. Average (alary Often broken down by job level, department or position. Example: the average salary for a level 3 executive was $214,000. 32. (alary 6eviation (#y 8o# 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. 33. Cost o/ 7ene/its as a *ercentage o/ (alary How much are you spending on benefits relative to salary? Example: average cost of benefits was 39.7% of salary. 3!. Cost o/ 7ene/its as a *ercentage o/ Revenue Average cost of benefits was 3.7% of revenue.

Key Employees and Star Performers

3". 5ey Employee (atis/action Rate How satisfied are your most important employees? Key employees often includes executives and top performers. Example: key employees had a satisfaction rate of 89.7%. 3$. 5ey Employee Retention Rate The retention rate for key employees was 82.3%.

3%. 5ey Employee Cost Rate How much do key employees cost (including salary, benefits, training and incentives)? Example: the average cost for a level 3 key employee was $405,098. 3'. 5ey Employees Eligi#le /or Retirement How many key employees are eligible for retirement in the next 5 years? Example: 15.8% of key employees are eligible for retirement in the next five years. 3+. 7ench (trength A succession planning metric that measures the depth of the successor pool for a key position. Example: there are 14 qualified successors for level 1 executives. !,. 5ey Employee Turnover #y Reason Co)e Why do key employees leave? Reason codes include things like compensation, personal reasons, benefits, professional development etc... Example: 17% of key employees leave for better compensation.

HR Pipeline
!1. Employee (alary #y &evel Average salary broken down by level. Example: average salary for level 8 staff is $48,765. !2. 0um#er o/ Employees #y 7an) There are 10,876 level 8 staff.

!3. Employee *ro)uctivity #y *osition This is a business specific metric. Biomedical research example: the average patents per senior researcher was 0.16. !!. Attrition #y &evel The attrition rate for level 8 staff was 17.3%.

Employee Retention
!". 3nvoluntary Termination Rate The involuntary termination rate was 2.2%. !$. 1oluntary Termination Rate The voluntary termination rate was 21.1%. !%. Average Retention *erio) Often broken down by department, manager or position. Example: the average retention period in the sales department was 3.4 years. !'. Employees Eligi#le /or Retirement 28% of employees become eligible for retirement in the next 5 years. !+. Employees Eligi#le /or 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. ",. Average Tenure Average tenure is 13.6 years.

"1. 1oluntary Termination 7y Reason Co)e Why are staff leaving? Example: 8% of staff who quit said it was because of working conditions.

Employee Satisfaction
"2. 9o# (atis/action Average employee job satisfaction was 67%. "3. 9o# Empowerment 76% of employees say they are empowered to do their jobs. "!. Compensation (atis/action 3% of employees say they are satisfied with compensation. "". .pportunities /or A)vancement 43% of employee say they have opportunities for advancement. "$. Training an) 6evelopment E//ectiveness 33% of employees say that training and development programs are effective. "%. 0et *romoter Rate 65% of employees say they would recommend our products to friends and family. "'. HR 6epartment (atis/action Rate 34% of employees are satisfied with the HR department.

"+. 4anagement E//ectiveness 16% of employees are satisfied with executive management. $,. Clarity o/ Company 1ision 38% of employees believe the company has a clear vision. $1. E:ual .pportunities 89% of employees say there are equal opportunities for advancement. $2. ;ork < &i/e 7alance 44% of employees say they enjoy work / life balance. $3. Employee Commitment 3n)e= 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. $!. 4arket .pportunity 3n)e= Employee perceptions of opportunities elsewhere. Example: 67% of employees believe our competitors offer higher compensation. $". Employee Complaints 2.1% of employees made at least one complaint to HR. $$. Employee &awsuits 6 employees and former employees sued the company.

Training and Development

$%. Training Cost per Employee Average training and development costs were $3,454 per employee. $'. Training per Employee The average employee completed 14.7 hours of training.

Diversity and Compliance

Employers track diversity statistics for regulation and compliance. $+. >en)er Example: 54% of level 3 executives are women. %,. 6isa#ilities Example: 6.3% of employees have a disability.

Dash oard E!ample