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  • Time To Hire

    Detail:

    Average number of days to fill a position

    Computation:

    Sum of days from job posting to offer acceptance / Number of hires

    Example

    Scenario:  


    Job Posting Date: May 1 

    Job Offer Acceptance Date: May 27 

    Calculation:  


    Time to Hire: May 27 - May 1 = 26 days

    Source of Hire

    Detail:

    Tracks where candidates are coming from (referrals, job boards, etc.)

    Computation:

    Number of hires from each source (referrals, job boards, etc) / Total number of hires

    Example

    Scenario: A company hires five new employees in a month from various sources:  


    Employee A: Referred by a current employee. 

    Employee B: Applied through LinkedIn. 

    Employee C: Found through a recruitment agency. 

    Employee D: Applied via the company's website. 

    Employee E: Applied through Indeed.

    Cost Per Hire

    Detail:

    Recruitment spending divided by hires

    Computation:

    Total recruiting costs (salary, agency fees, referral bonus etc) / Number of hires

    Example

    Scenario: A company hires four new employees in a month and incurs the following recruitment costs:  


    Advertising: $2,000 

    Recruitment Agency Fees: $6,000 

    Employee Referral Bonuses: $1,000 

    Interview Expenses: $1,000 

    Total Recruitment Costs: $10,000 

     

    Calculation:  

    Total Hires: 4 

    Cost per Hire: Total Recruitment 

    Costs / Total Hires Cost per Hire: $10,000 / 4 = $2,500

    Offer Acceptance Rate

    Detail:

    How Many offers rolled out have been accepted

    Computation:

    Number of offers accepted / Total number of offers made

    Example

    Scenario: A company extends 10 job offers in a month, and 8 of those offers are accepted.  


    Calculation

     Total Offers Extended: 10 

    Offers Accepted: 8 

    Offer Acceptance Rate: (Offers Accepted / Total Offers Extended) x 100 Offer 

    Acceptance Rate: (8 / 10) x 100 = 80%

    Qualified Applicant Ratio

    Detail:

    Applicants that make it to interview stage

    Computation:

    Number of applicants that make it to interview stage / Total number of applicants

    Example

    Scenario: A company receives 100 applications for a job opening. Out of these, 25 applicants meet the qualifications for the position.  


    Calculation:  

    Total Applications Received: 100 

    Qualified Applicants: 25 

    Qualified Applicant Ratio: (Qualified Applicants / Total Applications Received) x 100 

    Qualified Applicant Ratio: (25 / 100) x 100 = 25%

  • Retention Rate

    Detail:

    Percentage of employees that remain employed over a certain period

    Computation:

    Number of employees who remain after a period
    ___________________________
    Number of employees at start of period

    Example

    Scenario: A company has 200 employees at the beginning of the year. By the end of the year, 180 of those original employees are still with the company.  


    Calculation:  

    Employees at Start of Year: 200

    Employees Remaining at End of Year: 180 

    Retention Rate: (Employees Remaining / Employees at Start) x 100 

    Retention Rate: (180 / 200) x 100 = 90%

    Turnover Rate

    Detail:

    Percentage that leave over a period

    Computation:

    Number of separations during period / Average number of employees during period

    Example

    Scenario: A company has 150 employees at the beginning of the year. During the year, 30 employees leave the company.  


    Calculation:  Employees at Start of Year: 150 

    Employees who Left During Year: 30 

    Turnover Rate: (Employees who Left / Employees at Start) x 100 

    Turnover Rate: (30 / 150) x 100 = 20%

    Exit Interview Feedback Scores

    Detail:

    Feedback given by exiting employees

    Computation:

    Average rating from exit interview questions

    Example

    Scenario: In a month, 10 employees leave the company and provide exit interview feedback scores out of 5. The average score from their feedback is calculated.  


    Feedback Scores:  

    Employee 1: 4 

    Employee 2: 3 

    Employee 3: 5 

    Employee 4: 4 

    Employee 5: 2 

    Employee 6: 5 

    Employee 7: 4 

    Employee 8: 3 

    Employee 9: 4 

    Employee 10: 5 

    Average Feedback Score:  (4 + 3 + 5 + 4 + 2 + 5 + 4 + 3 + 4 + 5) / 10 = 39 / 10 = 3.9

    Retention Rate By Categories

    Detail:

    Retention by tenure, department, manager, etc.

    Computation:

    Number of employees who remain after a period per tenure, department, manager, etc. / Number of employees at start of period tenure, department, manager, etc.

    Example

    Scenario: A company has 100 employees in its sales department and 80 employees in its marketing department at the beginning of the year. By the end of the year, 90 sales employees and 75 marketing employees are still with the company.  


    Retention Rate Calculation:  

    Sales Department:  

    Employees at Start: 100 

    Employees Remaining: 90 

    Retention Rate: (90 / 100) x 100 = 90% 

    Marketing Department:  

    Employees at Start: 80 

    Employees Remaining: 75 

    Retention Rate: (75 / 80) x 100 = 93.75%

  • Employees With Current Goals/Development Plans

    Detail:

    Ensuring active engagement in professional growth and aligning individual aspirations with organizational objectives.

    Computation:

    Number of employees with goals / Total employees

    Example

    Scenario: A company conducts a review and finds that out of 50 employees, 40 have documented current goals and development plans.  


    Calculation:  Employees with Current Goals/Development Plans: 40 

    Total Employees: 50 


    This example indicates that 80% of the company's employees have current goals and development plans documented.

    Completion rate of performance reviews

    Detail:

    Assessing the effectiveness of performance management processes and feedback mechanisms within the organization.

    Computation:

    Number of reviews completed / Total number of reviews planned

    Example

    Scenario: In a company with 100 employees, 90 employees have completed their performance reviews within the designated timeframe.  


    Calculation:  

    Employees Who Completed Reviews: 90 

    Total Employees: 100 


    This example shows that the completion rate of performance reviews is 90% within the organization.

    Performance Rating Distribution

    Detail:

    Evaluating fairness and consistency in performance assessment while identifying potential biases or areas for improvement in rating practices

    Computation:

    Number of employees per rating category / Total rated employees

    Example

    Scenario: In an organization with 600 employees, the distribution of performance ratings is as follows:  


    Exceptional: 50 employees (8.33%) 

    Exceeds Expectations: 100 employees (16.67%) 

    Meets Expectations: 300 employees (50%) 

    Needs Improvement: 120 employees (20%) 

    Unsatisfactory: 30 employees (5%) 


    This example provides both the numbers and percentages for each performance rating category within the organization.

    Performance To Compensation Alignment

    Detail:

    Assessing the correlation between employee performance and compensation to ensure equitable reward distribution and incentivize high performance.

    Computation:

    Average compensation increase per rating category

    Example

    Scenario: In a company with 100 employees having different salaries, performance ratings directly influence salary adjustments.  


    Example:  

    Employee A: "Exceptional" rating, earns $60,000; receives a 10% raise. 

    Employee B: "Exceeds Expectations" rating, earns $50,000; receives a 7% raise. 

    Employee C: "Meets Expectations" rating, earns $70,000; receives a 5% raise. 

    Employee D: "Needs Improvement" rating, earns $45,000; receives a 2% raise. 


    This example illustrates how each employee's salary adjustment is determined by their performance rating, irrespective of their initial salary.

Above Are Just 3! A List of Powerful HR Metrics Awaits You

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Our in-house team of industry experts has curated a set of useful HR metrics that provide invaluable insights to optimize your recruitment process.

We've showcased just three key metrics above, but that's just the tip of the iceberg. Our free HR Metrics PDF explores a wealth of data points.

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Our AI-ML-powered solution tackles the challenges of traditional/current hiring by focusing on DEI and cultural fit while mitigating conscious and unconscious biases. We offer a detailed approach, including candidate experience optimization and alternative assessment methods (nonintrusive and highly intuitive), to help you attract, evaluate, and retain top talent who will be woven into your company culture.

Useful HR Metrics

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