Top 5 Human Resources Metrics You Should Be Tracking
1) The cost of Hire.
This is the most traditional method of calculating recruiting costs. You take the total cost of all hires and divide that figure by the number of new hires. The total cost includes all advertising costs, recruiting and agencies, referrals, screening costs, travel expenses, salary, and the overhead of the company’s hiring staff. For a typical business in the 20-49 employee range, though, the cost is of $40,165 per worker. (Forbes.com)
2) Recruitment Effectiveness and Efficiency.
The cost of recruiting, in general, should also be calculated. To calculate the recruitment cost ratio you take the external costs plus the internal costs and divide them by the total first-year compensation of hires in a period. Then you multiply that by one hundred to find the percentage.
3) Workforce Reporting.
Workforce Reporting helps companies understand core attributes and characteristics about their employee workforce. This helps businesses determine their targeting strategies and plans for the future. Companies should calculate their headcount, groups and subgroups, and their demographics in their workforce.
4) How many days a position is open until an offer is accepted.
Days to fill or time to fill helps the HR department determine a realistic amount of time for hiring new employees. Approximately two-fifths (44%) of jobs in the US are filled within 30 days according to indeed.com. If the company is focused on speeding up the hiring process, it may decrease quality. The company may be more focused on quality than they may experience a longer hiring process and increased costs.
5) Employee Attrition.
This means the loss of workers because of reasons other than firing or other events the employer initiates. Attrition can be measured by overall attrition, attrition of critical employees or new-hire attrition.