HR metrics

Examples of quantitative HR metrics

The below table provides an overview of some of the common quantitative or tangible performance indicators organisations may use when undertaking a HR audit.

Performance Indicator	Target (% # $)	Actual (% # $)	Gap (% # $)	Notes
RECRUITMENT, SELECTION, INDUCTION
Average days taken to fill a position
Number of job acceptances to offers made
Average recruitment costs per department
EQUAL EMPLOYMENT OPPORTUNITY
Number of EEO grievances
EEO recruitment / promotion rate
EEO turnover rate
PAYROLL / COMPENSATION
Average salary / wage per level
Average value of additional compensation
LEARNING AND DEVELOPMENT
Cost dedicated to L&D per employee
Average number of employees participating
PERFORMANCE MANAGEMENT
Performance appraisal ratings (average)
WORKFORCE PLANNING
Ratio of internal to external promotions
WORK HEALTH AND SAFETY
Average number of accidents / near misses
Workers compensation premium costs
INDUSTRIAL RELATIONS
Number of formal grievances
STAFFING
Turnover rate
Absenteeism rate
HR TEAM
Ratio of HR team members to employees

It should be noted that intangible measures, or qualitative data, is also useful to determine the effectiveness of HR policy and practices. For example, feedback from staff and/or customers about their satisfaction with each of the above areas can help HR to further analyse and address gaps between target and actual states.

The following metrics are commonly used by HR Practitioners in Australia.

Metric (workforce composition)	Calculation
Average workforce tenure The average tenure in years of the workforce at the end of the reporting period.	$𝑇 𝑜 𝑡 𝑎 𝑙 𝑤 𝑜 𝑟 𝑘 𝑓 𝑜 𝑟 𝑐 𝑒 𝑡 𝑒 𝑛 𝑢 𝑟 𝑒 𝐸 𝑂 𝑃 ℎ 𝑒 𝑎 𝑑 𝑐 𝑜 𝑢 𝑛 𝑡 : 𝑡 𝑒 𝑛 𝑢 𝑟 𝑒 𝑟 𝑒 𝑝 𝑜 𝑟 𝑡 𝑒 𝑑$
Generation ratio – silents & boomers /generation x y Ratio of mature workers (silent & boomer) to younger workers (generations x & y).
Unscheduled absence per employee Average number of unscheduled absent days per employee annually.
Metric (recruitment)	Calculation
Net recruitment ratio Number of external recruits for every employee separation during the period.
Recruitment source ratio – permanent Number of internal recruits for every permanent external recruit appointed.
Metric (retention and career development)	Calculation
Career path ratio Number of employees internally promoted for every employee internally Transferred to a new position.
Retention rate The percentage of employees retained during the reporting period.
Staffing rate – approaching retirement eligibility Percentage of employees approaching retirement age at the end of the reporting period.
Metric (separation and exit)	Calculation
Total separation rate Proportion of the workforce that left the organisation for any reason during the year.
Employee initiated separation rate Proportion of the workforce that initiated its own separation from the organisation during the reporting period.