Human Resources Metrics, Reporting, and Financial Management Module 2 - Types and Use of HR Metrics

Question 1

What are human capital metrics?

Answer 1

Describe the characteristics of the workforce.

Education level, experience, skill inventories, performances scores, tenure.

Question 2

What are human resources metrics?

Answer 2

Describe the efficiency and effectiveness of HR programs.

Impact, speed, cost

Question 3

What is an HR audit?

Answer 3

A review of HR policies, programs, processes, and documentation to identify opportunities to improve efficiency, effectiveness, customer satisfaction, and legal compliance.

Question 4

What are efficiency metrics?

Answer 4

Assess whether things are being done right.

Doing things right

Question 5

What are effectiveness metrics?

Answer 5

Assess whether the right things are being done.

Doing the right things

Question 6

What are operational metrics?

Answer 6

Assess the efficiency and effectiveness of programs and services.

Short term impact

Question 7

What are strategic metrics?

Answer 7

Assess the linkage between HR programs and services and the organization’s strategic goals.

Long term impact

Question 8

What is the 5C Model of HRM Impact?

Answer 8

Suggests that there are five important areas to measures when valuing what HR brings to an organization.

The areas are: compliance, client satisfaction, culture management, cost control, and contribution

Question 9

What are metrics used for?

Answer 9

Establish baselines
Conduct benchmarking
Track trends
Justify strategic decisions regarding talent management
Measure the impact of HR on the organization’s bottom line

Question 10

What to metrics enable HR to do?

Answer 10

Speak the language of business
Put forward convincing business cases
Report empirical evidence
Be a true strategic business partner

Question 11

What is an HR dashboard?

Answer 11

A tool that visually displays important HR metrics.

Question 12

What are productivity metrics?

Answer 12

Absenteeism
Overtime
Human Capital Return on Investment

Question 13

What does absenteeism measure?

Answer 13

of workdays missed due to illness per full time equivalent employee (FTE) = sick days / FTE

Question 14

What does overtime measure?

Answer 14

Average # of overtime hours worked by each individual contributor = overtime hours / individual contributor headcount

Question 15

What does human capital return on investment measure?

Answer 15

Rate of return for each dollar invested in employee pay and benefits = [revenue - (operating expenses - compensation and benefits costs)] / compensation and benefit costs

Question 16

What does compa-ratio measure?

Answer 16

A compensation metric.

For an individual = individual’s salary / midpoint of salary band

Question 17

What are recruitment metrics?

Answer 17

% of positions being actively recruited for
External hire rate
Average time to fill when hiring from outside
Cost of external hires
Quality of external hires by source

Question 18

How is the % of positions being actively recruited for calculated?

Answer 18

Vacancy rate = # vacant positions / headcount

Question 19

How is the external hire rate calculated?

Answer 19

External hire rate = # external hires / # all positions filled

Question 20

How is the average time to fill when hiring from outside calculated?

Answer 20

= sum of all external days to fill / # external recruits

Question 21

How is the cost of external hires calculated?

Answer 21

= total external hiring costs / # external recruits

Question 22

How is the quality of external hires by source calculated?

Answer 22

= average performance rating of new recruits after 3 months from each hiring

Question 23

What are retention metrics?

Answer 23

Turnover
Executive voluntary turnover rate
Succession planning rate

Question 24

How is turnover calculated?

Answer 24

Turnover = (resignations + retirements + involuntary terminations) / headcount

Question 25

How executive voluntary turnover rate calculated?

Answer 25

= (executive resignations + executive retirements) / executive headcount

Question 26

How is succession planning rate calculated?

Answer 26

= # of succession planning candidates / executive level headcount

Question 27

What are labor relations metrics?

Answer 27

Grievance incidence
% of grievances closed
Arbitrated grievance rate

Question 28

How is grievance incidence calculated?

Answer 28

= # of open grievances / unionized headcount

Question 29

How is % of grievances closed calculated?

Answer 29

= # of grievances closed / # of open grievances

Question 30

How is the arbitrated grievance rate calculated?

Answer 30

= # of grievances gone to arbitration / # of open grievances

Question 31

What are learning development metrics?

Answer 31

Cost per FTE
Cost as a % of revenue
Cost as a % of payroll
Incidence
Duration
Participation

Question 32

How is cost per FTE calculated?

Answer 32

= learning and development cost / FTE

Question 33

How is cost as a % of revenue calculated?

Answer 33

Learning and development cost / revenue

Question 34

How is cost as a % of payroll calculated?

Answer 34

= learning and development cost / labor costs

Question 35

How is incidence calculated?

Answer 35

= # of learning and development events / FTE

Question 36

How is duration calculated?

Answer 36

= # of learning and development hours / FTE

Question 37

How is participation calculated?

Answer 37

= # employees attending learning and development events / # of all employees