Nawas
Senior Hr Officer
Smrin
Aslam Shaikh
Human Resource Officer
Venky108
Employed
Pooja_22
Working As An Assistant Manager-human Capital(hr)
+4 Others

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.

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:
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.

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

This divides market capitalization by FTEs, including contingents. The formula is:
Market Capitalization/FTEs .

Regards,

Rohit Lakhotia

From India, Calcutta
Thanks Rohit, really useful formula for any HR person. Just wanted to know one thing, is this formula for attrition correct which is No of people attrited/average of headcounts (opening headcount +closing headcount/2).
In my current organization we use this formula only...

From India, Delhi
Thank you Rohit. Cud u also pls help me out with some good organization structures if u come across any as I am just a fresher and have joined a organization just few days back.
From India, Mumbai
Hi Kalyani, Attached the hiring calculator, pls find. Thanks
From Kuwait, Kuwait

Attached Files
 cost%20per%20hire%20calculator(1).xls (32.5 KB, 805 views)

Dear All, Can you help me to write an essay on "Why do you intend to pursue studies in MBA program". I would be very thankful to you all. Thanks Aslam
From Pakistan, Karachi
Mr. Lakhotia,
I hope this one is the best combination of formulas, I have ever seen and also went through some of your threads and found that it's awesome...Keep doing good work..
My best wishes are wid you...

From China
Dear Rohit,
Thank you so much for your valuable post.....the formulas are really useful. I need one more help, can you or anyone suggest what is the normal Attrition value and Turnover value for a Health care Industry?
Regards
Lakshmi

In human capital value added, there is a formulw which states nonhuman expenses, can you please explain the meaning of the term?
What is contingent labour cost?
Regards
Venkat

[QUOTE=Rohit Lakhotia;416750]
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.
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:
Pay + Benefits + Contingent Labor Cost/Full-Time Equivalents
[LEFT][B][FONT=Times New Roman][COLOR=navy]It can be augmented by added in contingent lab

1. ORGANIZATIONAL EFFECTIVENESS

Revenue Factor
Revenue / Total FTE

Expense Factor
Operating Expense / Total FTE

Income Factor
(Revenue – Operating Expense) / Total FTE

Revenue – (Operating Expense – [Compensation Cost + Benefit Cost]) / Total FTE

Human Capital ROI
Revenue - (Operating Expense – [Compensation Cost + Benefit Cost]) / (Compensation Cost + Benefit Cost)

2. Human Resources Structure

HR Expense Percentage
HR Expense / Operating Expense

HR FTE Ratio
Total FTE / Total HR FTE

HR Exempt Percentage
HR Exempt FTE / Total HR FTE

HR Investment Factor
HR Expense / Total FTE

HR Separation Rate
HR Separations / HR Head Count

HR Structure Breakdown
HR FTE by Category / Total HR FTE

3. Compensation

Compensation Revenue Percentage
Compensation Cost / Revenue

Total Compensation Revenue Percentage
Compensation Cost + Benefit Cost) / Revenue

Total Labor Cost Revenue Percentage
(Compensation Cost + Benefit Cost + Other Labor Cost) / Revenue

Compensation Expense Percentage
Compensation Cost / Operating Expense

Total Compensation Expense Percentage
(Compensation Cost + Benefit Cost) / Operating Expense

Total Labor Cost Percentage
(Compensation Cost + Benefit Cost + Other Labor Cost) / Operating Expense
Compensation Factor
Compensation Cost / Workforce Head Count

Supervisor Compensation Factor
Supervisor Compensation Cost / Supervisor Head Count

Supervisor Compensation Percentage
Supervisor Compensation Cost / Compensation Cost

Executive Compensation Factor
Executive Compensation Cost / Executive Head Count

Executive Compensation Percentage
Executive Compensation Cost / Compensation Cost

4. Benefits

Benefits Revenue Percentage

Benefit Cost / Revenue
Benefit Expense Percentage
Benefit Cost / Operating Expense

Benefit Compensation Percentage
Benefit Cost / Compensation Cost

Health Care Factor
Medical and Medically Related Benefit Cost / Covered Employees

Workers Compensation Factor
Workers Compensation Cost / Workforce Head Count

Benefit Cost Breakdown
Benefit Cost by Category / Benefit Cost

5. Separations

Separation Rate
(Voluntary Separations + Involuntary Separations) / Head Count

Voluntary Separate Rate

Involuntary Separate Rate

Voluntary Separations by Length of Service
Voluntary Separations by Length of Service by Category / Voluntary Separations

6. Staffing

External Accession Rate

Internal Accession Rate

College Accession Rate

External Replacement Rate
External Replacement Hires / Head Count

Internal Replacement Rate
Internal Replacement Hires / Head Count

College Replacement Rate
College Replacement Hires / Head Count

External Cost per Hire
(External Hiring Cost X 1.1 Factor) / External Hires

Internal Cost per Hire
(Internal Hiring Cost X 1.1 Factor) / Internal Hires

Collegel Cost per Hire
(College Hiring Cost X 1.1 Factor) / College Hires

External Cost per Hire Breakdown
External Hiring Cost by Category / (External Hiring Cost X 1.1 Factor)
Internal Cost per Hire Breakdown
Internal Hiring Cost by Category / (Internall Hiring Cost X 1.1 Factor)
External Time to Fill
External Days to Fill / External Hires

Internal Time to Fill
Internal Days to Fill / Internal Hires

External Time to Start
External Days to Start / External Hires

Internal Time to Start
Internal Days to Start / Internal Hires

External Hires Offer Acceptance Rate
External Offers Accepted / External Offers Extended

Internal Hires Offer Acceptance Rate
Internal Offers Accepted / Internal Offers Extended

College Hires Offer Acceptance Rate
College Offers Accepted / College Offers Extended

Sign-on Bonus Percentage
Total Hires Receiving Sing-on Bonus / Total Hires

Supervisor Sign-on Bonus Percentage
Supervisor Hires Receiving Sing-on Bonus / Supervisor Hires

Executive Sign-on Bonus Percentage
Executive Hires Receiving Sing-on Bonus / Executive Hires

Sign-on Bonus Factor
Sign-on Bonus Cost / Total Hires Receiving Sign-on Bonus

Supervisor Sign-on Bonus Factor
Supervisor Sign-on Bonus Cost / Supervisor Hires Receiving Sign-on Bonus
Executive Sign-on Bonus Factor
Executive Sign-on Bonus Cost / Executive Hires Receiving Sign-on Bonus
7. Training and Development

Employees Trained Percentage
Employees Trained / Total Head Count

Training Cost Factor
Total Training Cost / Employees Trained

Training Cost Percentage
Total Training Cost / Operating Expense

Training Investment Factor
Total Training Cost / Total Head Count

Training Staff Ratio
Total FTE / Training Staff FTE

Training Cost per Hour
Total Training Cost / Total Training Hours

Internal Staff Training Hours Percentage
Internal Staff Training Hours Provided / Total Training Hours

External Staff Training Hours Percentage
External Staff Training Hours Provided / Total Training Hours

From India, Bangalore

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