HR Formulas
1. Attrition Rate
Total number of people who left the organization in the period / (Headcount at the start of the period + Heads recruited during the period)
2. Manpower Turnover
Total number of people who 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:
[Pay + Benefits + Contingent Labor Cost / Full-Time Equivalents]
It can be augmented by adding in contingent labor. In that case, we would take total labor expenses, including benefits costs, and divide by FTEs, including contingents.
6. Human Economic Value Added
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]
7. Human Market Value Added
This divides market capitalization by FTEs, including contingents. The formula is:
[Market Capitalization / FTEs]
Courtesy..
ANIL KUMAR
Senior Associate - Business Resource Group.
TCGIvega Information Technologies Pvt. Ltd.
Global Village,
Mysore Road,
Bangalore 560059
From India, Coimbatore
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7461. Attrition Rate
Total number of people who left the organization in the period / (Headcount at the start of the period + Heads recruited during the period)
2. Manpower Turnover
Total number of people who 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:
[Pay + Benefits + Contingent Labor Cost / Full-Time Equivalents]
It can be augmented by adding in contingent labor. In that case, we would take total labor expenses, including benefits costs, and divide by FTEs, including contingents.
6. Human Economic Value Added
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]
7. Human Market Value Added
This divides market capitalization by FTEs, including contingents. The formula is:
[Market Capitalization / FTEs]
Courtesy..
ANIL KUMAR
Senior Associate - Business Resource Group.
TCGIvega Information Technologies Pvt. Ltd.
Global Village,
Mysore Road,
Bangalore 560059
From India, Coimbatore
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Thanks a lot Peer Sahab these HR formulae are very useful for me. I have got lot gain from these HR Functions Thanks a lot Regards Riyaz Ahmed Shaikh Karnataka HUBLI Allah Hafiz
From India, Bangalore
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From India, Bangalore
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Dear Sir, Kindly give the formulas for LTA, headcout, turnover, attendence, salary breakup, etc
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Hi,
Good information, but I'm new to the generalist profile. Kindly explain in detail the below-mentioned calculations: PF, Payroll, LTA, Turnover, etc. Could you kindly list out all the formulas and HR metrics?
It would be appreciated if you could also send a copy to my personal email ID: devihr@gmail.com.
Regards,
Devi
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Good information, but I'm new to the generalist profile. Kindly explain in detail the below-mentioned calculations: PF, Payroll, LTA, Turnover, etc. Could you kindly list out all the formulas and HR metrics?
It would be appreciated if you could also send a copy to my personal email ID: devihr@gmail.com.
Regards,
Devi
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Formula for "employee turnove rate calculation" is; Employee Turvover rate = (Total number of employee left/Average number of employee)*100 Regards, Ehtesham
From Pakistan, Lahore
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From Pakistan, Lahore
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The number of total hours worked divided by the maximum number of compensable hours in a work year, as defined by law. For example, if the work year is defined as 2,080 hours, then one worker occupying a paid full-time job all year would consume one FTE. Two employees working for 1,040 hours each would consume one FTE between the two of them.
For more information, you can visit [Wikipedia - Full-Time Equivalent](http://en.wikipedia.org/wiki/Full-time_equivalent).
From Pakistan, Lahore
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For more information, you can visit [Wikipedia - Full-Time Equivalent](http://en.wikipedia.org/wiki/Full-time_equivalent).
From Pakistan, Lahore
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Hey peer, Good piece of information It would be gr8 if you could mail me HR metrics and calculations in Man power planning & Recruitment. Cheers Pavana Human resource Team
From India, Bangalore
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From India, Bangalore
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Can somebody tell me what does Full Time Equivalents stand for??..Its appearing in the Human Capital Cost formula...thanks...happy learning.... chilly_fry
From China, Qinhuangdao
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From China, Qinhuangdao
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FTE stands for the number of billable seats. For example, a 100-seater call center is manned by 100*1.25 = 125 agents. The 25 additional agents will not be paid for by the client but are required for managing breaks, unscheduled leaves, etc. Your revenue calculation is done keeping in mind the revenue generated for 100 seats versus expenses for 125 seats. Hope this helps.
From India, Ahmadabad
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From India, Ahmadabad
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Dear Anil Useful information,Thanks;Can you also tell me the formula for working out the percapita when it comes to human Resources and the formula for man hours.Regards Kumar :)
From India, Cochin
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From India, Cochin
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All formulas are very useful. But please explain the above specially Human Economic Value Added, Human Market Value Added, Human Capital ROI with few examples. Regards, Arindam Choudhury
From India, Jalandhar
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From India, Jalandhar
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Hi Anil / Peer,
What does form 1 & form 2 attrition mean, and how do you calculate these two types of attrition? What will be the end result by calculating form 1 & form 2 attrition?
By the way, this posting is very useful; thanks for sharing the information in the forum.
Thanks & Regards, Charan Kedar.C. +91 98407 18607
From United States, Palo Alto
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What does form 1 & form 2 attrition mean, and how do you calculate these two types of attrition? What will be the end result by calculating form 1 & form 2 attrition?
By the way, this posting is very useful; thanks for sharing the information in the forum.
Thanks & Regards, Charan Kedar.C. +91 98407 18607
From United States, Palo Alto
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hi ANIL KUMAR its really very useful information , will u pls help me with a formula to calculate rate absentesium. regards ram
From India, Hyderabad
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From India, Hyderabad
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Organizational Effectiveness
*Revenue Factor*
Revenue / Total FTE
*Expense Factor*
Operating Expense / Total FTE
*Income Factor*
(Revenue - Operating Expense) / Total FTE
*Human Capital Value Added*
Revenue - (Operating Expense - [Compensation Cost + Benefit Cost]) / Total FTE
*Human Capital ROI*
Revenue - (Operating Expense - [Compensation Cost + Benefit Cost]) / (Compensation Cost + Benefit Cost)
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
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
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
Separations
*Separation Rate*
(Voluntary Separations + Involuntary Separations) / Head Count
*Voluntary Separation Rate*
Voluntary Separations / Head Count
*Involuntary Separation Rate*
Involuntary Separations / Head Count
*Voluntary Separations by Length of Service*
Voluntary Separations by Length of Service by Category / Voluntary Separations
Staffing
*External Accession Rate*
(External Add Hires + External Replacement Hires) / Head Count
*Internal Accession Rate*
(Internal Add Hires + Internal Replacement Hires) / Head Count
*College Accession Rate*
(College Add Hires + College Replacement Hires) / Head Count
*External Add Rate*
External Add Hires / Head Count
*Internal Add Rate*
Internal Add Hires / Head Count
*College Add Rate*
College Add Hires / Head Count
*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
*College 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 / (Internal 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 Sign-on Bonus / Total Hires
*Supervisor Sign-on Bonus Percentage*
Supervisor Hires Receiving Sign-on Bonus / Supervisor Hires
*Executive Sign-on Bonus Percentage*
Executive Hires Receiving Sign-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
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
Jeswin Jose
MCC, Chennai
From India, Bangalore
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*Revenue Factor*
Revenue / Total FTE
*Expense Factor*
Operating Expense / Total FTE
*Income Factor*
(Revenue - Operating Expense) / Total FTE
*Human Capital Value Added*
Revenue - (Operating Expense - [Compensation Cost + Benefit Cost]) / Total FTE
*Human Capital ROI*
Revenue - (Operating Expense - [Compensation Cost + Benefit Cost]) / (Compensation Cost + Benefit Cost)
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
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
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
Separations
*Separation Rate*
(Voluntary Separations + Involuntary Separations) / Head Count
*Voluntary Separation Rate*
Voluntary Separations / Head Count
*Involuntary Separation Rate*
Involuntary Separations / Head Count
*Voluntary Separations by Length of Service*
Voluntary Separations by Length of Service by Category / Voluntary Separations
Staffing
*External Accession Rate*
(External Add Hires + External Replacement Hires) / Head Count
*Internal Accession Rate*
(Internal Add Hires + Internal Replacement Hires) / Head Count
*College Accession Rate*
(College Add Hires + College Replacement Hires) / Head Count
*External Add Rate*
External Add Hires / Head Count
*Internal Add Rate*
Internal Add Hires / Head Count
*College Add Rate*
College Add Hires / Head Count
*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
*College 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 / (Internal 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 Sign-on Bonus / Total Hires
*Supervisor Sign-on Bonus Percentage*
Supervisor Hires Receiving Sign-on Bonus / Supervisor Hires
*Executive Sign-on Bonus Percentage*
Executive Hires Receiving Sign-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
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
Jeswin Jose
MCC, Chennai
From India, Bangalore
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Dear Jose ji, Very informatin posting. But copy past of such a huge valume is not fare. Regards, PBS KUMAR
From India, Kakinada
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From India, Kakinada
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VERY INFORMATIF... WONDER IF U COULD SHARE WITH ME SOME OF THE REFERENCES Jackarea, Sabah, Malaysia
From Malaysia, Sibu
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From Malaysia, Sibu
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Dear Peer Mohamad, Thnks for sharing important info of HR wid us. Its very useful. Keep posting such kind of information of HR.
From India, Mumbai
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From India, Mumbai
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Hi,
So, attrition is not calculated as:
No. of attritions in a month / (Op HC + Cl HC) / 2 * 100?
That way, Cl HC would be Op HC of the previous month + new joinees - attritions. But, your formula's denominator says (Headcount at the start of the period + Heads recruited during the period). That leaves out the attrition submission...
I'm highly confused after reading all the posts on this formula. Please clarify.
From India, Calcutta
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So, attrition is not calculated as:
No. of attritions in a month / (Op HC + Cl HC) / 2 * 100?
That way, Cl HC would be Op HC of the previous month + new joinees - attritions. But, your formula's denominator says (Headcount at the start of the period + Heads recruited during the period). That leaves out the attrition submission...
I'm highly confused after reading all the posts on this formula. Please clarify.
From India, Calcutta
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HR Survey & Research in Human Capital on Values, Productivity & Savings.pdf
Managing Human Capital.ppt