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 periodExample
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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