HR Metrics
Human Capital Value Added
Human Capital Value Added (HCVA) is a measure of the extent to which employees add value
to the business.
HCVA = Revenue – (Total Costs – Employment Cost) / Full Time Employees
This indicator is included in the book: Key Performance Indicators – the 75+ measures every
manager needs to know, which contains an in-depth description of this KPI, as well as practical
advice on data collection, calculations, target setting, and acutal usage.
Revenue per Employee
Revenue per Employee is an indicator of how much revenue is generated per employee – and
therefore an important productivity ratio.
Revenue per Employee = Revenue / Number of (full time equivalent) Employees
This indicator is included in the book: Key Performance Indicators – the 75+ measures every
manager needs to know, which contains an in-depth description of this KPI, as well as practical
advice on data collection, calculations, target setting, and acutal usage.
Employee Satisfaction
Employee Satisfaction Index is a multi-item measure of how satisfied employees are. Depending
on the organisational priorities, it can include measures such as leadership, career progression,
training, company culture, conditions and pay.
Employee Engagement Level
Employee Engagement Level is a multi-item measure of how engaged employees are in their
job. Depending on the organisational priorities measures could include recognition, goal clarity,
contribution, learning, etc.
Staff Advocacy Score
Staff Advocacy Score is a measure of the extent to which employees are advocates of the
business. It can be measured by asking a simple question: “How likely is it that you would
recommend this company as an employer to a friend?”
Employee Churn Rate
Employee Churn Rate is a measure of the level of staff retention in a business.
Employee Churn Rate = Total number of leavers over period / Average total number
employed over period
Average Employee Tenure
Average Employee Tenure is a measure of the time employees tend to stay with a particular
company. Employee tenure can provide insights into employee loyalty, employee satisfaction as
well as the freshness level of the workforce.
Average Employee Tenure = Sum of all tenures / number of full-time employees
Absenteeism Bradford Factor
Absenteeism Bradford Factor is a measure of the level of unauthorized employee absence from
work.
Bradford Factor = Dt x Et x Et
Dt = Total number of days of unplanned absence
Et = Total number of individual spells or episodes of absense
360-Degree Feedback Score
360-Degree Feedback Score is a measure of people performance through the eyes of other
employees (both bosses and subordinates). It is a multi-item measure that could include
measures of skill and capability, leadership, etc
Employee Core Competency Profile
Employee Core Competency Profile is an indicator that helps companies understand the extent to
which they have the appropriate skills and competencies.
Diversity Index
Diversity Index is usually a multi-item measure to establish the diversity profile of the
workforce. Based on the strategic needs of a business, measures could include gender, ethnicity,
social and cultural background, as well as education levels.
Performance Review Completion Ratio
Performance Review Completion Factor is a measure of the extent to which employees receive
regular performance and career development reviews.
Performance Review Completion Factor = (Rc / Ra) x 100
Rc = total number of performance reviews completed in a given time period
Ra = total number of employees that should have received a performance review in that same
time period
Salary Competitiveness Ratio
Salary Competitiveness Ratio (SCR) is a measure of how competitive the current salary is that a
company offers for specific job roles. Salary competitiveness can be measured against specific
competitors or against the general market.
Salary Competitiveness Ratio (competitor) = Salary offered by your company / Salary
offered by your competitor
Salary Competitiveness Ratio (industry) = Salary offered by your company / Average
Salary offered in the industry or sector
Executive to Employee Pay Ratio
Executive-to-Employee Pay Ratio is a measure of the gap between top level and entry level
remuneration and therefore an indicator of remuneration fairness.
Executive-to-Employee Pay Ratio = (Px / Pe) / 1
Where Px = CEO Pay and Pe = Pay for lowest paid worker
Time to Hire
Time to Hire is a recruitment indicator that shows how long it takes to fill vacant posts.
Time to Hire = Elapsed time between Time of posting and Time to Start
Training Return on Investment
Training Return on Investment is a measure of training effectiveness. It measures the return a
company gets from providing training. It is usually measured using a multi-scale approach to
cover different benefit levels.
Time Lost due to Accidents or Injuries
Time Lost due to Accidents or Injuries is an indicator of safety in the operational environment of
a business and indicates the risks of accidents
Time Lost Due to Accidents or Injuries (LTI) = number of man days lost due to accidents
or injury in a period/total hours worked in this period
Leaver Attitude Score
Leaver Attitude Score measures the attitude of employees who leave the organisation or their
current the job. The data for the Leaver Attitude Score is usually derived from a from completed
at an exit interview. Attitudes can be scored on different dimensions.
Strategy Awareness Level
Strategy Awareness Level measures the percentage of the workforce that are aware of the
corporate (or business unit) strategy. Strategy Awareness Level is usually measured as part of an
employee survey or a performance review.
Strategy Awareness Level = (Employees that are aware of the strategy / Number of Full-
Time-Equivalent Employees) x 100
Average Applications to Open Posts
Average Applications to Open Posts helps to measure how attractive a company is as a potential
employer. Average Applications to Open Posts can be measured by job families and compared
across sectors.
Net Promoter Score
The Net Promoter Score is a measure of customer satisfaction and customer loyalty. It is based
on a single question: How likely is it that you would recommend [Company X or product Y or
service Z] to a friend or colleague?
This question is then scored against a 10point scale (0=Not at all likely, 10 Extremely likely).
Responses between 0-7 are classified as detractors and responses between 9 and 10 as promoters.
Net Promoter Score = % of Promoters – % of Detractors