What hr metrics are you familiar with

A search online for HR metrics will result in numerous lists all claiming to be the most useful HR metrics today, but there are some that are more useful than others. One of the top metrics used in HR is the Cost of HR per Employee. If you have an HR person or more than one person, this is how much you pay the HR team versus how many total employees you have. It helps you determine whether you need an employee dedicated to HR or multiple HR employees.

How You Calculate It: The total salary & benefits package of your HR team divided by the number of employees. This is an efficiency metric and your ratio will depend on your style of business. For example, if you have all salaried, full-time employees, you probably will need an HR person by the time you hit 30-50 people; if you have a restaurant with a lot of part-time hourly staff, you might not need an HR person until far more due to their part-time nature (i.e., no benefits).

Here are some other important metrics that you will find on an organization’s HR Scorecard. These HR metrics really home in on recruiting and performance.

Metric 1: Time to hire/average time to hire

What It Means: Recruiting processes can take far too long at some companies and it can mean that you lose talent. Having a recruitment process that is around 4-6 weeks to fill positions is desirable in order to save time and money. The time to hire is from when a candidate starts the interview process until they accept your offer.

How You Calculate It: Look up the number of days that each job you offered took to be filled from the time the candidate started interviewing, and then divide it by the number of jobs. For example, let us say that you posted four jobs throughout the last 90 days, and all four resulted in successful hires. The hiring process took anywhere between 5 and 9 weeks from start to finish, as seen below: