HR Cafeteria - A Human Resource Repository Covering Contemporary and Traditional HR Information

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 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 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 is simply the average pay per regular employee. The formula is: P...

V alue-based HR management - Seven Steps                                        The pressure on Human Resources to become strategic is not new. In 1997, David Ulrich initiated the debate by labeling HR "ineffective, incompetent, costly and value-sapping." With this statement he challenged HR professionals to create value and move beyond administration to business partnership. So how close has HR come to achieving this? Defining what "value" means in HR terms is the clincher. Outsourcing solutions, Web-enabled processes and shared services have almost eliminated the need for HR as a purely administrative function. Today, HR can only truly add value if it helps the organization develop capabilities to compete and win business. This includes attracting and retaining talent, acting with spee...