Hello Friends,
As we all know, numbers speak for themselves. What's expressed in numbers is generally understood easily and is justifiable in a more convincing manner when compared to literature. The below-mentioned ratios are definitely indicative of the performance of HR in any given organization and are the most widely used and accepted methodology for calculation.
Employee Turnover
Well, many of us are at crossroads as to how to calculate Employee Turnover. Each one of us has a standard, and when we compare our statistics with other organizations, we are embarrassed, aren't we?
Here is the equation set by the United States Bureau of Labor Statistics:
Turnover = (Number of employee separations during the month / Total number of employees at Mid-Month) * 100
Let's hope that from now on, all of us speak on the same wavelength, eh!
Absenteeism Rate
Various methods of measuring or computing absenteeism exist. Here is the formula suggested by the US Department of Labor:
{Number of person-days lost through job absence during the period / (Average number of employees) X (Number of workdays)} * 100
Cost of Interview
CoI = (ST + MT) / nI
ST = Total staff time spent on interviewing candidates (staff hourly rate x hours spent)
MT = Total Managers time spent on interviewing candidates (managers hourly rate x hours spent)
nI = Number of candidates interviewed
Cost of Hire
CoH = ST + MT + AC + PC
ST = Total staff time spent on interviewing candidates (staff hourly rate x hours spent)
MT = Total Managers time spent on interviewing candidates (managers hourly rate x hours spent)
AC = Advertisement Cost (if multiple ads, then divide ad cost by the number of positions)
PC = Placement charges paid
Regards,
Ramya
As we all know, numbers speak for themselves. What's expressed in numbers is generally understood easily and is justifiable in a more convincing manner when compared to literature. The below-mentioned ratios are definitely indicative of the performance of HR in any given organization and are the most widely used and accepted methodology for calculation.
Employee Turnover
Well, many of us are at crossroads as to how to calculate Employee Turnover. Each one of us has a standard, and when we compare our statistics with other organizations, we are embarrassed, aren't we?
Here is the equation set by the United States Bureau of Labor Statistics:
Turnover = (Number of employee separations during the month / Total number of employees at Mid-Month) * 100
Let's hope that from now on, all of us speak on the same wavelength, eh!
Absenteeism Rate
Various methods of measuring or computing absenteeism exist. Here is the formula suggested by the US Department of Labor:
{Number of person-days lost through job absence during the period / (Average number of employees) X (Number of workdays)} * 100
Cost of Interview
CoI = (ST + MT) / nI
ST = Total staff time spent on interviewing candidates (staff hourly rate x hours spent)
MT = Total Managers time spent on interviewing candidates (managers hourly rate x hours spent)
nI = Number of candidates interviewed
Cost of Hire
CoH = ST + MT + AC + PC
ST = Total staff time spent on interviewing candidates (staff hourly rate x hours spent)
MT = Total Managers time spent on interviewing candidates (managers hourly rate x hours spent)
AC = Advertisement Cost (if multiple ads, then divide ad cost by the number of positions)
PC = Placement charges paid
Regards,
Ramya