HR Metrics

Introduction

There are many types of HR metrics. The following shows one way of using HR metrics. Both the costs for permanent and temporary headcounts are considered. The information for the sections are given in relations to the Singapore Context.

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Information for the Sections

Total Headcount = Permanent Headcount + Temporary Headcount + Contract Headcount

Payroll Cost = Salaries (Including allowances and commission) + CPF on Salary (Pension) + Bonus + CPF on bonus (Pension) + CPF on Allowance + CPF on Commission

Benefits Cost = Annual leave + Medical expenses + Club subscriptions + Insurance premiums + other benefits

Staff Cost = Payroll Costs + Benefit Costs + Miscellaneous contingent labor costs

Training Cost = Cost of in-house training + Cost of external training + Cost of travel and accommodation related to overseas training.

Staff Turnover in percentages by month = Number of resignees for the month over number of headcount for the month

Section A: Key Performance Indicators of the Company

1 Human Value Capital Added

This yields the profit per employee

2 Human Capital ROI

This measure the capital invested in pay and benefits

3 Revenue Per Employee

This shows the effectiveness of the business in terms of business results. This measures the revenue per employee.

Section B:Staff Cost of the Company

1 Total Compensation Revenue Percent

This shows how much of the revenue goes to support the company’s direct costs of the employees.

2 Total Benefits Revenue Percent

This shows how much of the revenue goes to support the company’s indirect costs of the employees.

3 Staff Cost Factor

This shows the effectiveness of the business in terms of costs per staff. This measures how much staff cost goes to each employee.

Section C: Recruitment and Retention

1 Recruitment

There are 2 measures:

  • The first measure is the recruitment cost per hire
  • The second measure is the average time to fill a position.

2 Voluntary Separation Rate

This is the average cost of separation. It represents potential lost opportunity and lost revenue. The average cost of separation for an employee should not be more than 6 month’s equivalent of revenue per employee.

Section D: Training and Development 

1 Training and Development Costs

This measure the training costs per employee.

2 Training Hours

This measures the number of training hours per employee.

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