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📊 Key HR Metrics: Definitions, Formulas, and Examples

Human Resources (HR) metrics are essential tools that help organizations measure the effectiveness and efficiency of their people strategies. 

These metrics offer data-driven insights into employee behavior, recruitment success, engagement levels, and overall workforce performance. By tracking and analyzing these indicators, HR leaders can make informed decisions to improve productivity, reduce costs, enhance employee satisfaction, and align talent management with organizational goals.

✅ Here are 15 vital HR metrics every organization should monitor:

𝗧𝘂𝗿𝗻𝗼𝘃𝗲𝗿 𝗥𝗮𝘁𝗲
Formula: (Number of Departures / Average Total Employees) × 100
Example: (10 / 100) × 100 = 10% Turnover Rate

𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗥𝗮𝘁𝗲
Formula: (Engaged Employees / Total Employees) × 100
Example: (80 / 100) × 100 = 80% Engagement Rate

𝗧𝗶𝗺𝗲-𝘁𝗼-𝗛𝗶𝗿𝗲
Formula: Total Days to Hire / Number of Hires
Example: 100 / 5 = 20 Days

𝗖𝗼𝘀𝘁-𝗽𝗲𝗿-𝗛𝗶𝗿𝗲
Formula: Total Recruitment Costs / Number of Hires
Example: SLL 10,000 / 5 = SLL 2,000

𝗔𝗯𝘀𝗲𝗻𝗰𝗲 𝗥𝗮𝘁𝗲
Formula: (Total Absence Days / Total Workdays) × 100
Example: (100 / 200) × 100 = 50% Absence Rate

𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗥𝗢𝗜
Formula: ((Training Benefits – Training Costs) / Training Costs) × 100
Example: ((SLL 10,000 – SLL 5,000) / SLL 5,000) × 100 = 100% ROI

𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗥𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗲
Formula: (Retained Employees / Total Employees) × 100
Example: (90 / 100) × 100 = 90% Retention Rate

𝗛𝗥-𝘁𝗼-𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗥𝗮𝘁𝗶𝗼
Formula: HR Staff / Total Employees
Example: 5 / 100 = 1:20

𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗽𝗲𝗿 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲
Formula: Total Revenue / Total Employees
Example: SLL 1,000,000 / 100 = SLL 10,000

𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗦𝗮𝘁𝗶𝘀𝗳𝗮𝗰𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗲
Formula: (Satisfied Employees / Total Employees) × 100
Example: (85 / 100) × 100 = 85% Satisfaction Rate

𝗧𝗮𝗹𝗲𝗻𝘁 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗖𝗼𝘀𝘁
Formula: Total Recruitment Costs / Number of Hires
Example: N 15,000 / 3 = N 5,000 per Hire (Ensure currency consistency, e.g., not mixing N and SLL)

𝗡𝗲𝘄 𝗛𝗶𝗿𝗲 𝗧𝘂𝗿𝗻𝗼𝘃𝗲𝗿 𝗥𝗮𝘁𝗲
Formula: (New Hire Departures / Total New Hires) × 100
Example: (2 / 10) × 100 = 20%

𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼
Formula: Diverse Employees / Total Employees
Example: 20 / 100 = 20%

𝗔𝘃𝗲𝗿𝗮𝗴𝗲 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗧𝗲𝗻𝘂𝗿𝗲
Formula: Total Years of Service / Number of Employees
Example: 500 / 100 = 5 Years

𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 (𝗥𝗢𝗜) 𝗶𝗻 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 (duplicate of #6, consider removing one)
Formula: ((Training Benefits – Training Costs) / Training Costs) × 100
Example: ((SLL 15,000 – SLL 10,000) / SLL 10,000) × 100 = 50% ROI

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