HR Formulas or HR Metrics or HR Analytics
1. Attrition Rate
Total number of people
left the organization in the period / (Headcount at the start of the period +
Heads recruited during the period)
2. Manpower Turnover
Total number of left the organization
in the period / Average headcount in the period
3. Human Capital ROI
3. Human Capital ROI
This measures the return on capital
invested in pay and benefits. The formula is:
Revenue - Nonhuman Expenses/Pay and
Benefits
Pay includes all money spent on
regular and contingent labor.
4. Human Capital Value Added
4. Human Capital Value Added
This uses a similar formula to
Human Capital ROI but divides by the number of full-time equivalent employees
(FTEs). The formula is:
Revenue - Nonhuman
Expenses/Full-Time Equivalents
this yields a profit per FTE. These two measures are views of the profitability attributable to human effort.
5. Human Capital Cost
this yields a profit per FTE. These two measures are views of the profitability attributable to human effort.
5. Human Capital Cost
This is simply the average pay per
regular employee. The formula is:
Pay + Benefits + Contingent Labor
Cost/Full-Time Equivalents
It can be augmented by added in contingent labor. In that case, we would take total labor expenses, including benefits costs, and divide by FTEs, including contingents.
6. Human Economic Value Added
It can be augmented by added in contingent labor. In that case, we would take total labor expenses, including benefits costs, and divide by FTEs, including contingents.
6. Human Economic Value Added
This is net operating profit after
tax, minus the cost of capital divided by FTEs, including contingent labor. The
formula is:
Net operating profit after tax - Cost of capital/FTEs
7. Human Market Value Added
Net operating profit after tax - Cost of capital/FTEs
7. Human Market Value Added
This divides market capitalization
by FTEs, including contingents. The formula is:
Market Capitalization/FTEs
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