KPI for Measuring of effectiveness HR dept posted in category HR
WinningKPI - HR - KPI for Measuring of effectiveness HR dept posted in category HR
Dear, I'd like to have your feedback on the following HR-KPI's for people services company with 1200 FTE:
(1) FTE per HR FTE, (2) HR cost per FTE (euro or USD)learning &development; investment/FTE (money and/or hours per person), (4) Cost per hire (euro or USD), (5) Termination rate within 4 years (%), (6) Absence rate (%)
I'm working on this for my company, and hope that this information will be an added value completing my final report.
Personally I'm responsible for the Learning&Development; department.
thx a lot, and looking forward to your input!
Peter
The formula for calculating this KPI is: Total FTE (excluding HR)/ HR FTE
In the case of your company, if we call the HR FTE x (as I do not know the figure), and I consider your FTE headcount of 1200 (as I do not know your Total FTE count):
(1200-x) / x
for example, If x = 20 ,
(1200 – 20)/ 20 = 59, hence 59 employees per every 1 HR employee
You can calculate this either using FTE headcount, and you can see how many employee you have per HR employee, or you can use the actual FTE count
Oana Boteanu | + | August 25, 2012 at 4:18 pm
The formula for calculating this KPI is:
Total HR Department Costs / Total Number of FTE
Here you can also either use the FTE headcount of the actual FTE count. I will use the FTE headcount (1200) and I will call the HR Cost x.
x/1200
The answer will give you how much the cost of HR is per employee
Oana Boteanu | August 25, 2012 at 4:21 pm
(3) Learning and Development (L&D;) Investment per FTE
I have two KPIs for this question, L&D; Investment per FTE (in terms of budget) and Average Number of Training Hours per Employee.
L&D; Investment per FTE – looks at the average investment per FTE (available budget)
The formula is: Total L&D; budget / Total number of employees
If I call the L&D; budget for your company x, the formula is:
x/1200
Just as the previous KPIs, here you can use FTE headcount or actual FTE count, depending on what you need to measure.
Average Number of Training Hours per Employee
Formula: Total number of training hours / total number of employees
Here you will divide the total number of training hours (called x) by the total number of employees, 1200
x/1200
Oana Boteanu | August 25, 2012 at 4:24 pm
The formula to calculate the average cost to recruit is:
Total recruitment costs / number of open vacancies
Calculating this will give you the cost per filling one vacancy, in other words the cost per hire. Please note that you will have to measure this in a given time period, e.g. annually.
Oana Boteanu | August 25, 2012 at 4:24 pm
The formula to calculate this termination rate is:
Total number of employees that terminated employment within 4 years/ total number of employees x 100
You will have to calculate this in a given time period. If you want to look at how many employees terminated in 4 years, you may choose to take a 5-10 years period for your company.
If, let’stake for example, you get a figure of 40 employees that terminated within 4 years the formula will be:
40/1200 x 100 = 0.33 x 100 = 3.3 %, on average a 3% of your employees terminated within 4 years, in that given time period.
You may also want to look at other details, if it was voluntary or involuntary termination, etc.
Oana Boteanu | August 25, 2012 at 4:26 pm
I suggest using this formula to calculate the Absence Rate %:
(Number of days absent) percentage of [(Average number of employees) x (number of workdays)]
This can be easily calculated using a scientific calculator.
If we call the total number of absent days x, and your total number working days would be around 260, I assume, excluding holidays. Hence the formula will be:
X percentage of (1200 x 260) = x percentage of 312000
Oana Boteanu | August 25, 2012 at 4:27 pm
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