Metrics on employee management

Jon Boyes
Employability and Graduate Development
HR SPOT
www.hrspot.co.in | www.onlinehrspot.com
Kolkata | Bhubaneswar | Online
Best HR Practice Award
Special Achievement Award
Star Greenbelt of East (Six Sigma)
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AWARDS & ACCOLADES
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www.hrspot.co.in | ISO Certified | Winner of 8 Service Excellence Awards
HR Analytics
HUMAN RESOURCE MANAGEMENT
HR ANALYTICS

HR Analytics
HR Metrics
Employee Management
Metrics

HR Analytics
Purpose :
By improving employee NPS, customer satisfaction can be increased & employee turnover and
labor costs can be reduced.
NPS is a metric that asks, “On a scale of 0-10, how likely would you recommend working at our
company to a friend or colleague”
Scoring Category :
Promoters – 9 to 10 respondents considered Very Satisfied
Passives – 7 and 8 considered Somewhat satisfied
Detractor – 0 to 6 considered a Not satisfied
NET PROMOTER SCORE (NPS)
Process :

HR Analytics
Formula : (Keeping Passive Category aside)
NPS = Promoters – Detractors
A negative score indicates that more employees said they would not recommend someone to
work at the company, whereas a positive score indicates high levels of engagement, with more
people recommending the company as an employer of choice.
Example :
Promoters :
Detractors :
If 20% of respondents were “Promoters” and 10% of respondents were “Detractors”, then
employee NPS score would be 10.
NET PROMOTER SCORE (NPS)
Output:

HR Analytics
Purpose :
A high absenteeism rate will inevitably hamper productivity, finances and workplace
atmosphere. Absenteeism rate can be calculated on last quarterly, monthly, half yearly.
Example :
In a quarter 1st Jan – 31st Mar,
Total No of workdays : 78 | Total absent days : 12
Average no of employees : (Beginning & end of period) 80 + 84 = 164 | 164 /2 = 82
Average no of absent days : 12 / 82 = 0.14
Absenteeism rate = (82 x 0.14) / (82 x 78)
Absenteeism rate = 11.48 / 6396 * 100
Absenteeism rate = 0.17%
ABSENTEEISM
Formula :
Absenteeism =
average number of employees x missed workdays
average number of employees x total workdays in
the period
x 100

HR Analytics
Purpose :
Ensures employees to understand their strengths and weaknesses and to contribute insights
into aspects of their work needing professional development.
• Immediate Supervisors
• Peers
• Customers
• Self Rating
• Subordinates
Rating Scale : (0-5)
• Outstanding 5
• Exceeds Expectations 4
• Meets expectations
• Needs Improvement
• Does Not Meet Expectations
360 DEGREE RATING
Raters:

HR Analytics
Measurement Parameters:
• Cooperation
• Building Relationships
• Leadership Qualities
• Creative Thinking
• Helping Others
Example :
Parameter 1,
Cooperation :
No of employees giving Rating : 5
Ratings of 5 employees : 5+5+4+4+3
Cooperation Rating : 21/5 = 4.2
For 360 Degree Feedback, all rating of individual parameters needs to added together.
360 DEGREE RATING

HR Analytics
Purpose :
Employees who are about to leave the company can be identified and extra attention and care
can be given to those departments or units.
Annual Turnover
Total No of Employees left : 24
Employees at the beginning of the year : 110
Employees at the end of the year : 104
Average Employees in this period : (110 + 104) / 2 = 214 / 2 = 107
Annual Turnover Rate : 24/107*100 = 22.4%
Formula :
TURNOVER / ATTRITION PERCENTAGE
Example :
Turnover Rate =
Total number of employees who left
(Employees at the beginning of the year +
Employees at the end of the year) / 2
x 100

HR Analytics
Purpose :
This to ensure employees are satisfied, qualified and prepared enough to excel in their current
jobs rather than leave for another position.
Total No of employees : 80
No of employees left : 2
Average no of employees : (Beginning & end of period) 82 + 80 = 162 / 2 = 81
Employee Retention Rate : (80 – 2) / 81*100 = 96%
Formula :
EMPLOYEE RETENTION PERCENTAGE
Example :
Total number of employees-number of employees left
average no of employees in that period
Employee Retention
Rate =
x 100

HR Analytics
Purpose :
Voluntary turnover occurs when an employee chooses to leave a company due to another job,
transfer or retirement.
No of Employees left the country for voluntary reasons : 25
No of employees in beginning & end of period : 500 + 470 = 970
Average No of employees : 970 / 2 = 485
Voluntary turnover rate of the company : 25/485*100 = 5.15%
Formula :
VOLUNTARY TURNOVER RATE
Example :
Total number of employees voluntarily left
Average total no of employeesVoluntary Turnover Rate = x 100

HR Analytics
Purpose :
Poorly performing employee can be identified and replaced with someone who is motivated
and excels at their job, productivity can rise.
No of Employees left the company for involuntary reasons : 20
No of employees in beginning & end of period : 380 + 350 = 730
Average No of employees : 730/2 = 365
Involuntary turnover rate of the company : 20/365*100 = 5.47%
Formula :
INVOLUNTARY TURNOVER RATE
Example :
Total number of employees involuntarily left
Average total no of employeesInvoluntary Turnover Rate = x 100

HR Analytics
Purpose :
Employees who receives the high rating on an organization’s performance review system but
leaves the company in a given fiscal year can be identified.
No of Highest performers left the company in a year : 10
No of Highest performers in the company in a year : 100
Annual highest performers turnover rate : 10/100*100 = 10%
Formula :
HIGHEST PERFORMER TURNOVER
Example :
Number of Highest performers left in a year
Number of highest performer in that year
Turnover rate for highest
performers =
x 100

HR Analytics
Purpose :
This metrics helps to identify ineffective managers to provide them additional support and train
them to become more effective managers.
Formula :
ATTRITION RATE PER MANAGER
Example :
No of team member left
Average no of team memberAttrition Rate Per Manager = x 100
Manager Team Size Left Calculation Attrition %
Manager 1 30 3 3/30*100 10%
Manager 2 25 2 2/25*100 8%
Manager 3 45 4 4/45*100 9%
Manager 4 35 5 5/35*100 14%High Attrition

HR Analytics
Purpose :
This metrics helps to identify effective managers who can retain most of their resources..
Formula :
RETENTION RATE PER MANAGER
Example :
Average no of team size - No of team member left
Average no of team size
Retention Rate Per
Manager =
x 100
Manager Team Size Left Calculation Retention
%
Manager 1 30 3 30-3= 27 | 27/30*100 90%
Manager 2 25 2 25-2= 23 | 23/25*100 92%
Manager 3 45 4 45-4= 41 | 41/45*100 91%
Manager 4 35 5 35-5= 30 | 30/35*100 86%
High Retention

HR Analytics
Purpose :
Assists each individual employees to understand their strengths and weaknesses and to
contribute insights into aspects of their work needing professional development.
Reasons :
% of DIFFERENT REASON FOR ATTRITION RATE
Output : Reasons No of Emp left
(20)
Calculation Attrition %
Poor Salary 4 4/20*100 20%
Poor Management 5 5/20*100 25%
Lack of Growth 6 6/20*100 30%
Poor training 5 5/20*100 25%
Top Reason
• Lack of growth
• Poor training
• Poor Salary
• Poor training

HR Analytics
Purpose :
Gallup's Q12 survey: the 12 questions, measures the employee engagement and its impact on
the outcomes that matter most to your business.
Grandmean - averages the scores received from the individual Q12 item
Gallup Database Percentile Rank - company’s database percentile rank for each Q12 item
Green — above 66th percentile in the Gallup database
Yellow — 33rd to 66th percentile in the Gallup database
Red — below 33rd percentile in the Gallup database
Scoring :
Scores are on a 1 to 5 point scale, which highlights strengths and opportunities.
1= Strongly Disagree
5= Strongly Agree
GALLUP SURVEY SCORE
Results:

HR Analytics
Survey Questions :
The 12 – Q are:
1. Do you know what is expected of you at work?
2. Do you have the materials and equipment to do your work right?
3. At work, do you have the opportunity to do what you do best every day?
4. In the last seven days, have you received recognition or praise for doing good work?
5. Does your supervisor, or someone at work, seem to care about you as a person?
6. Is there someone at work who encourages your development?
7. At work, do your opinions seem to count?
8. Does the mission/purpose of your company make you feel your job is important?
9. Are your associates (fellow employees) committed to doing quality work?
10. Do you have a best friend at work?
11. In the last six months, has someone at work talked to you about your progress?
12. In the last year, have you had opportunities to learn and grow?.
GALLUP SURVEY SCORE

HR Analytics
Purpose :
By calculating the raw scores & benchmark scores(T Scores) through employee survey, levels of
employees satisfaction or engagement can be identified.
Process :
Raw Scores are average of all responses
Scores in 5-point rating scale, where the lowest possible raw score is a 1, and the highest
possible raw score is a 5
T-Scores are one way of representing benchmark scores
Eliminate the natural variations between survey questions and determines scores are high or
low
For calculating T-Scores,
Mean (average) : 50
Standard Deviation : 10
EMPLOYEE SURVEY SCORE

HR Analytics
Scoring :
T-Score above 50 - Above Average
T-Score less than 50 - Below Average
T-Score of above 60 - Higher Level
If organization's raw score: 4.2 (for example)
Average score across all organizations: 3.7
Standard deviation across all organizations: 0.5
T-Score = (4.2 - 3.7) / 0.5 * 10 + 50 = 60
Formula :
EMPLOYEE SURVEY SCORE
Example :
Your Organization's Raw Score - Average Score
Standard Deviation
T-Score = x 10 + 50

HR Analytics
Mean:
The "average" number; found by adding all data points and dividing by the number of data
points.
Example:
The mean of 4, 1 and 7 is (4+1+7)/3 = 12/3 = 4
The “most frequent” number; that is, the number that occurs the highest number of times.
Example :
The Mode of 4,2,4,3,2,2 is 2 (occurs 3 times)
Median :
The “middle” number; found by ordering all data points and picking out the one in the middle
(or if there are two middle numbers, taking the mean of those two numbers)
Example:
The median of 4, 1 and 7 is 4 (1,4,7)
STATISTICAL FORMULA
Mode :

Metrics on employee management

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