METRIC FOR HUMAN RESOURCE MANAGEMENT
INTRODUCTION <ul><li>Human resources are the most critical asset of any organization. According to the latest research, th...
<ul><li>HR Metrics provides a measurement and the analytic and data based decision-making capability to influence business...
The Society of Human Resource Management has identified  key human capital measurements <ul><li>Revenue Factor = Revenue /...
<ul><li>Total Compensation Revenue Ratio = Compensation & Benefit Cost / Revenue  </li></ul><ul><li>Labor Cost Revenue Rat...
<ul><li>Health Care Costs per Employee = Total Health Care Costs / Total Employees  </li></ul><ul><li>Turnover Costs = Ter...
METRIC IN HR <ul><li>Employee Attitudes:-  contain two indicator </li></ul><ul><li>Job Contentment (the percentage of empl...
<ul><li>Employee turnover:-  contain five indicator </li></ul><ul><li>Cost per Hire (calculation of advertising, agency fe...
<ul><li>Recruiting:-  contain five indicator </li></ul><ul><li>Vacant Period (number of overall days the positions were va...
<ul><li>Retention:-  contain three indicator </li></ul><ul><li>a) Preventable Turnover (this indicator considers the reaso...
<ul><li>Training and Development:- contain three indicator </li></ul><ul><li>Learning and Growth Opportunities (percentage...
ANALYSIS OF HR METRICS :- <ul><li>GIVE ANSWER TO THE FOLLOWING:- </li></ul><ul><li>What types of training, for which segme...
APPLICATION  <ul><li>It is use to determine how best to demonstrate achievement of an organization. </li></ul><ul><li>HR m...
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Metric for human resource management

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Metric for human resource management

  1. 1. METRIC FOR HUMAN RESOURCE MANAGEMENT
  2. 2. INTRODUCTION <ul><li>Human resources are the most critical asset of any organization. According to the latest research, the efficiency level of an organization largely depends on its human capital management (HCM). </li></ul><ul><li>Comprehensive human resources measurement policy enables the organizational management to collect consistent information about the employee population, which alleviates decision-making and ensures that management and development activities remain relevant with overall business strategy. </li></ul>
  3. 3. <ul><li>HR Metrics provides a measurement and the analytic and data based decision-making capability to influence business strategy with an attempt to make business better decision and transform HR into strategic partners </li></ul><ul><li>It provides a number of factors that can be measured to show how Human Resource contributions to the business. </li></ul><ul><li>Human Resource Metrics has become important for Balanced Scorecards and other performance measurement systems. The reason is due to the need for effective management over human resource capital </li></ul>
  4. 4. The Society of Human Resource Management has identified key human capital measurements <ul><li>Revenue Factor = Revenue / Total Full Time Employees </li></ul><ul><li>Human Capital Value Added = (Revenue - Operating Expense - Compensation & Benefit Cost) / Total Full Time Employees </li></ul><ul><li>Human Capital Return on Investment = (Revenue - Operating Expenses - Compensation & Benefit Cost) / Compensation & Benefit Cost </li></ul>
  5. 5. <ul><li>Total Compensation Revenue Ratio = Compensation & Benefit Cost / Revenue </li></ul><ul><li>Labor Cost Revenue Ratio = (Compensation & Benefit Cost + Other Personnel Cost) / Revenue </li></ul><ul><li>Training Investment Factor = Total Training Cost / Headcount </li></ul><ul><li>Cost per Hire = (Advertising + Agency Fees + Recruiter's Salary/Benefits + Relocation + Other Expenses) / Operating Expenses </li></ul>
  6. 6. <ul><li>Health Care Costs per Employee = Total Health Care Costs / Total Employees </li></ul><ul><li>Turnover Costs = Termination Costs + Hiring Costs + Training Costs + Other Costs </li></ul><ul><li>It is also important to benchmark your HR metrics against past performance and other companies </li></ul>
  7. 7. METRIC IN HR <ul><li>Employee Attitudes:- contain two indicator </li></ul><ul><li>Job Contentment (the percentage of employees satisfied with their job) </li></ul><ul><li>b) Manager Contentment (the percentage of employees satisfied with their manager </li></ul>
  8. 8. <ul><li>Employee turnover:- contain five indicator </li></ul><ul><li>Cost per Hire (calculation of advertising, agency fees, employee referrals, relocation, recruiter pay and benefits costs and the number of hires) </li></ul><ul><li>Turnover Cost (calculation of termination, new hire, vacancy and learning curve costs) </li></ul><ul><li>Turnover Rate (rate of the employees leaving an organization) </li></ul><ul><li>Time to Fill (the period from job requisition approval to new hire start date) </li></ul><ul><li>Length of Employment (this indicator considers the job title, department, etc.). </li></ul>
  9. 9. <ul><li>Recruiting:- contain five indicator </li></ul><ul><li>Vacant Period (number of overall days the positions were vacant). </li></ul><ul><li>New Hires Performance Appraisal (average performance appraisal of new hires, compared to previous period). </li></ul><ul><li>Manager Satisfaction (according to the survey of hiring managers, compared to previous period). </li></ul><ul><li>Turnover Rates of New Hires (during a specified period). </li></ul><ul><li>Financial Impact of Bad Hire (according to turnover cost and cost per hire). </li></ul>
  10. 10. <ul><li>Retention:- contain three indicator </li></ul><ul><li>a) Preventable Turnover (this indicator considers the reasons the employee left the organizations and what measures may be taken to prevent it). </li></ul><ul><li>b) Diversity Turnover (turnover rate in professional, managerial, and technical positions) </li></ul><ul><li>c) Financial Impact of Employee Turnover </li></ul>
  11. 11. <ul><li>Training and Development:- contain three indicator </li></ul><ul><li>Learning and Growth Opportunities (percentage of employees who are satisfied with the learning and growth opportunities in the organization) </li></ul><ul><li>On-the-job learning Contentment (percentage of employees who are satisfied with on-the-job learning, project assignments for growth and development, and job rotations) </li></ul><ul><li>Opportunities for New Hires (percentage of employees who report training opportunities among the top three reasons they accepted the job) </li></ul>
  12. 12. ANALYSIS OF HR METRICS :- <ul><li>GIVE ANSWER TO THE FOLLOWING:- </li></ul><ul><li>What types of training, for which segments of the workforce, will yield the best results? </li></ul><ul><li>What actions will help reduce absenteeism? </li></ul><ul><li>Why is turnover so high among a core group of critical talent, and what's required to retain those individuals? </li></ul><ul><li>What's the optimal mix of reward programs to boost engagement among employees to the point required to help drive stronger financial performance? </li></ul>
  13. 13. APPLICATION <ul><li>It is use to determine how best to demonstrate achievement of an organization. </li></ul><ul><li>HR metrics can be employed to help understand the impact of cost cutting, improve customer satisfaction or determine the impact of new technology. </li></ul>
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