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.
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
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.