HR Measurements

How do you rate your HR Performance..? so we can tell our boss that we have a big contribution in achieving company business objective. We are as HR always be seen stay aside of the line cause we don’t have a qualitative indicator to say we contribute significantly.

Here, I give you a simple reference a number of factors that can be measured to show how HR contributes to the business. Measures such as absence rate, health cost per employee, and HR expense factor show that HR has a sense of the importance of human capital measurement in supporting business objectives.

Absence Rate

[(# days absent in month) / (Ave. # of employees during mo.) X (# of workdays)] X 100

Cost per Hire

(Advertising + Agency Fees + Employee Referrals+ Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) / Number of Hires


Health Care Costs per Employee

Total cost of health care / Total Employees


HR expense factor

HR expense / Total operating expense


Human Capital ROI

Revenue - (Operating Expense -[Compensation cost + Benefit cost]) / (Compensation cost + Benefit cost)


Time to fill

Total days elapsed to fill requisitions / Number hired


Training Investment Factor

Total training cost / Headcount Training cost per employee.


Turnover Rate

[# of separations during mo / Ave. # of employees during mo.] x 100


Workers' Compensation Cost per Employee

Total WC cost for Year / Average number of employees


OK….Those are some of HR measurement that we can use to count how strategic HR contribution to support business objective. Compare your metrics against other organization's metric, survey data, etc. to evaluate your performance.

Metrics can show the benefit of your HR practices and it's contribution to your organization's profit.