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HR metrics

HR metrics and formulas

The numbers HR teams report every month, each with the formula, a worked example and practical ways to improve it.

Each metric page gives the formula in plain words, a worked example with numbers from an Indian company, the variants people confuse and practical ways to move the number. None of the pages quote industry benchmarks: the most useful comparison is your own last quarter, and the pages show how to set that up.

Attendance and time

Engagement

Hiring

Applicants per openingApplicants per opening = Total applications received / Number of openings. Qualified applicants per opening = Applicants who pass screening / Number of openingsCost per hireCost per hire (₹) = (External recruiting costs + Internal recruiting costs) / Number of hires in the periodInterview to offer ratioInterview to offer ratio = Candidates interviewed / Offers made, written as N to 1. Offer rate from interviews (%) = Offers made / Candidates interviewed x 100Offer acceptance rateOffer acceptance rate (%) = Offers accepted in the period / Offers made in the period x 100Offer dropout rateOffer dropout rate (%) = Candidates who accepted but did not join / Offers accepted in the period x 100Quality of hireQuality of hire (%) = (Performance indicator % + Confirmation rate % + 12-month retention %) / Number of indicatorsReferral hire rateReferral hire rate (%) = Hires who came through employee referrals / Total hires in the period x 100Source of hireSource of hire share (%) = Hires from a source in the period / Total hires in the period x 100Time to fillTime to fill (days) = Offer acceptance date minus Requisition approval date. Average time to fill = Sum of days for all positions filled / Number of positions filledTime to hireTime to hire (days) = Offer acceptance date minus Date the candidate applied or was sourced. Average time to hire = Sum of days for all hires / Number of hiresVacancy rateVacancy rate (%) = Open positions on the date / (Filled positions + Open positions) x 100

Learning and performance

Onboarding and probation

Retention and exits

Workforce and cost

Average salary incrementWeighted average increment (%) = (Total monthly salary after revision minus Total monthly salary before revision) / Total monthly salary before revision x 100Billable utilizationBillable utilization (%) = Billable hours / Available hours x 100, where Available hours = (Working days minus Leave days) x Standard daily hoursCompa ratioCompa ratio = Employee's actual salary / Midpoint of the salary range for the grade. Midpoint = (Range minimum + Range maximum) / 2Cost per employeeCost per employee (₹) = Total employment cost for the period / Average headcount for the periodFull-time equivalent (FTE)FTE = Total scheduled hours of all employees in the period / Standard full-time hours for one employee in the same periodGender diversity ratioGender diversity ratio (%) = Women employees / Total employees x 100, calculated for the whole company and for each level, department and hiring stageGender pay gapGender pay gap (%) = (Average pay of men minus Average pay of women) / Average pay of men x 100HR to employee ratioHR staff per 100 employees = HR staff in FTE / Total employees x 100. Employees per HR person = Total employees / HR staff in FTEHeadcountHeadcount = Employees on the rolls on the date. Average headcount = (Headcount at the start of the period + Headcount at the end) / 2Payroll cost to revenue ratioPayroll cost to revenue (%) = Total payroll cost for the period / Revenue for the period x 100Revenue per employeeRevenue per employee (₹) = Revenue for the period / Average headcount for the periodSpan of controlAverage span of control = Total direct reports of all managers / Number of managers

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