Examples of HR Metrics:
Human resources metrics provide quantitative measurements for department activities as well as productivity and employee-related issues throughout the workforce. Companies make the best use of human resources metrics to determine the amount of funding to allocate for human resources functions, employee compensation and benefits. HR metrics are also useful in justifying reasons for HR participation in executive level strategic decision making and the return on investment for human resources activities.
One of the most common HR metrics is cost-per-hire. Employers use cost-per-hire metrics to determine the expense of recruiting, training and maintaining a permanent workforce. Several factors become part of cost-per-hire metrics, such as the time recruiters and employers spend sourcing and interviewing candidates. This step can be as detailed as time expended researching job posting venues, locating venues that attract a diverse group of qualified applicants and the actual task of posting job postings. Other factors included in cost-per-hire metrics include staff time for interviewing candidates, the cost of pre-employment assessments, processing new employee packets and the cost of providing new-hire orientation, such as trainers’ staff time and the cost of materials, lunches and uniforms.
Socially responsible organizations measure diversity among the workforce and diversity within the upper ranks of management. For federal contractors, these HR metrics are mandated by law under affirmative action rules and regulations. However, many companies voluntarily disclose measurements that indicate their organizations’ commitment to diversity. To calculate HR metrics for this purpose, human resource staff generates employee census reports and sort the data according to race, sex, age, veteran status and disability. Comparisons between the available labor market and the workforce indicate whether the organization is...