The document provides an overview of HR metrics, emphasizing their importance in understanding workforce performance and making data-driven decisions. Key topics include recruitment effectiveness, compliance with regulations, cost analysis of hiring sources, and the significance of employee engagement. It also outlines best practices for gathering HR data and measuring various employee indicators to enhance organizational health.

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HR METRICS 101
Presented by Eric Cook, SPHR, SHRM-SCP
AGENDA
• Why HR Metrics
• The Essentials
• Recruitment and Hiring
• Metrics in the Employee
Lifecycle
• Final Thoughts

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HR METRICS TELLA STORY
Tracking people metrics is one of the best ways to see how your workforce
and organization are performing
WHY HR METRICSARE IMPORTANT
• Helping understand what is really happening
• Utilizing data to make decisions
• Predicting future trends or problems
• Allocating resources more efficiently
• Making a case for a new program or initiative
• Numbers
• Cost benefit analysis
Employee and business data can be one of the best ways to address serious organizational problems
HR METRICSAND THE STRATEGY CONNECTION
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
0 10 20 30 40 50 60 70
Revenue vs. Revenue Per Employee
Revenue Revenue Per Employee (RPE) Linear (Revenue) Linear (Revenue Per Employee (RPE))

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WHEN METRICS CAN HELP
Recruiting
difficulties
Low moraleHigh turnover
THE ESSENTIALS
• Time periods
• HR compliance
• Ratios
• Order of operations
• Excel and other applications
• Industry specifics
BASICS OF HR METRICS

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Low volume of
turnover, job
posting, or hiring
Hard to quantify
results
Small company
WHEN TO SKIP METRICS
BUSINESS STATISTICS 101
• Correlation does not mean causation
• Samples and populations
• Sample sizes, trends, and confidence
FOLLOW A SCIENTIFIC METHOD
• Set a goal:
• Calculate a test or hypothesis
• Observe
• Evaluate results
• Enact changes as needed

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• Protect employee personally identifiable data
• Unlawful to disclose genetic information about applicants or employees
• Do not collect genetic information unless a specific exemption applies
• Electronic records
• Disparate impact
• Physical examinations (and sometimes criminal records) only after job offer
METRICSAND COMPLIANCE
RECRUITMENT EFFECTIVENESS
• Recruitment advertising
costs
• Agency fees
• Employee referral bonus
• Signing bonus
• Employee travel costs
• New hire relocation cost
• Recruiter pay and benefits
• Hiring team time loss
• Background screening
• Selection and other tests
• Applicant tracking system
THE COST OF RECRUITMENT

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The effectiveness of
most recruitment
sources is not
tracked or measured.
Track where you post openings and what the result was
TRACKING THE SUCCESS OF A HIRING SOURCE
Track how effective your recruitment dollars are being spent:
• Assigna person or a team to track recruitment effectiveness
• Automateapplicant selection by tracking where applications are coming from
• Analyze the cost per applicant from all of your recruitment sources
• Adjust your spending by shifting funds to more effective sources
Source: Indeed.com, “The Four A’s of RecruitmentAdvertisingHow to Track Results and Make the Most of Your Budget” https://ads.indeed.com/pdf/recruitment_advertising.pdf
TRACKING THE SUCCESS OF A HIRING SOURCE
Source Applicants Cost CostPer Hire
Job Board 1 46 $25 $1
Job Board 2 27 $100 $4
Job Board 3 101 $175 $2
Job Board 4 9 $50 $6
Job Board 5 33 $50 $2
Employee Referrals* 5 $0 $0
Internal Applicants 1 $0 $0
*Employee referrals (if hired) often are offered a signing bonus to the referring employee

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COST PER SOURCE AND YIELD RATIO
HIRING ASSESSMENTS
APPLICANT VOLUME
• Entry level roles receive an abundance
of applications
• Hiring managers time is limited
• Good applicants can be hard to
separate from the rest

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• Establish multiple assessment “hurdles”
• Track monitor trends from successful
applicants
• Review tests for reliability and validity
• Ensure tests are job related
APPLICANT TESTING AND EVALUATION
Disparate Treatment Analysis
Job Title: White
Black/
African
American
Asian/
Pacific
Islander
American
Indian/
Alaskan
Native
Hispanic
Male
Total
Applicants 10 10 10 10 10 50
Hired 5 4 3 5 2 19
Selection Rate 50% 40% 30% 50% 20% 38%
Highest Group 50%
% of
Highest Group
100% 80% 60% 100% 40%
• A criteria or test should not
disproportionally impact any
protected class
• Neutral tests or selection procedures
that disproportionately exclude a
protected class can be challenged
• Unless the test or selection procedures
are job-related and consistent with
business necessity
DISPARATE IMPACT
RELIABILITYAND VALIDITY
Reliability
• how consistentlya test measures a particular characteristic
• meaningful test results should yield repeatable and dependable outcomes
Validity
• the quality a test measures and how accurately the test measures it
• provides relevancy to test results as it links them to their “real life”
measure

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EMPLOYEE INDICATORS
HR AND TRAINING EXPENDITURES PER EMPLOYEE
Training vs. Performance Issues
Performance AttendanceOutput
EMPLOYEE DATA TRACKING

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EMPLOYEE ENGAGEMENT
AND ORGANIZATIONAL HEALTH
• Organizations with employees who care about their jobs and teams almost always
outperform their other companies
• According to polling organization Gallup, if 100% of employees were fully engaged
in their jobs, the financial results would be between 450 and 550 billion dollars*
Source: Gallup, 2013 State of the American Workplace, Employee Engagement Insightsfor U.S. Business Leaders
BENEFIT UTILIZATION RATE
• A Company is increasing their non-monetary employee benefits in an effort to
attract and retain high performing millennial employees. They’ve been offering a
discounted membership a neighborhood gym but aren't sure that the cost is
paying off. To find out the utilization rate they will calculate…
• Benefit Utilization Rate =
# employees who report using the discounted membership
# employees who are offered discounted gym membership
BENEFIT UTILIZATION RATE
30 employees report using discounted gym membership
150 employees offeref discounted gym membership = 0.2 x 100 = 20%
Knowing that their benefit utilization rate is only 20%,
should we continue to offer this benefit?

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GATHERING EMPLOYEE
AND HR DATA
• Surveys and questionnaires
• Exit interviews
• Front line managers
• Customer service records
• Payroll and other HRIS software
• Performance evaluations
GATHERING EMPLOYEE DATA
EMPLOYEE ENGAGEMENT SURVEYS
A survey is a great way to get a pulse on your culture

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EMPLOYEE EXIT
Turnover Rate is
the total separations
divided by the average
number of employees
in the time period.
CALCULATING TURNOVER
Total workforce size at start of period
+ Total workforce size at the end of period
= Average number of employees in the period
Voluntary separations (resignations)
+ Involuntary separations (terminations and layoffs)
= Totalseparations in the period

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EXIT INTERVIEWS
FINAL THOUGHTS ON HR METRICS
THANK
YOU!
Eric Cook, SPHR, SHRM-SCP
HR Consultant
Eric is a recognized leader in the HR field and
has extensive experience in human resources,
management, and training. Eric has held several senior
HR positions, including as the HR & Operations Manager
for an award-winning interactive marketing agency and
as HR Director for a nationally known law firm. Eric
graduated with a Bachelor’s of Science (BS) in
Economics from the University of Oregon with a minor
in Business Administration. Eric is also active in the
community, volunteering with the regional Human
Resources Management Association Advocacy Team and
with youth training programs.