Hello Friends,
As we all know that numbers speak for themselves, whats expressed in numbers is generally understood easily and also it is justifiable in a more convincing manner when compared to literature. The below mentioned ratios definitely is indicative of the performance of HR in any given organisation and is the most widely used and accepted methodology for calculation.
Employee Turnover
Well, many of us are at cross-roads 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?
Well here is the equation set by the United States Beaureau of Labor Statistics
Turnover = (Number of employee separations during the month/Total number of employees at Mid Month)*100
Lets hope that now on, all of us speak on the same wavelength eh !
Absenteeism Rate
Various methods of measuring or computing absenteeism exist. Well here is the formula suggested by US Department of Labour :
{Number of person-days lost through job absence during period/(Average number of employees) X (Number of work days)}*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 = No 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 advt. Then divide advt. Cost by nos. of positions)
PC = Placement charges paid
Regards,
Ramya
From India, Mumbai
As we all know that numbers speak for themselves, whats expressed in numbers is generally understood easily and also it is justifiable in a more convincing manner when compared to literature. The below mentioned ratios definitely is indicative of the performance of HR in any given organisation and is the most widely used and accepted methodology for calculation.
Employee Turnover
Well, many of us are at cross-roads 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?
Well here is the equation set by the United States Beaureau of Labor Statistics
Turnover = (Number of employee separations during the month/Total number of employees at Mid Month)*100
Lets hope that now on, all of us speak on the same wavelength eh !
Absenteeism Rate
Various methods of measuring or computing absenteeism exist. Well here is the formula suggested by US Department of Labour :
{Number of person-days lost through job absence during period/(Average number of employees) X (Number of work days)}*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 = No 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 advt. Then divide advt. Cost by nos. of positions)
PC = Placement charges paid
Regards,
Ramya
From India, Mumbai
Hi Ramya,
It was indeed a very useful information to all of us.Thanx.But do you think these are applicable to our country meaning like the formulaes that were given were adopted by US Labour force.so is it the same all over the world.It may vary for each country right?? just clarify this to me.
1 more thing How were these formulae derived??
From India, Madras
It was indeed a very useful information to all of us.Thanx.But do you think these are applicable to our country meaning like the formulaes that were given were adopted by US Labour force.so is it the same all over the world.It may vary for each country right?? just clarify this to me.
1 more thing How were these formulae derived??
From India, Madras
Hi Ramya, Interesting info.... Would like to know the source of the information and the assumptions made during the derivation if you have them. Cheers! Lalita
From India, Madras
From India, Madras
hi ramya a really informative article. can u tell me how to numerically represent performance mearurement?
From India, Madras
From India, Madras
Hi Friends,
Thanks for the response, well these ratios are applicable to industries across the world. According to US Labour Bureau these are the formulae we need to use which is specified as international standards when arriving at the specific ratios. i am not aware of the process by which these formulae were arrived at but will definitely let you know once i have a hands-on information on this.
Regards,
Ramya
From India, Mumbai
Thanks for the response, well these ratios are applicable to industries across the world. According to US Labour Bureau these are the formulae we need to use which is specified as international standards when arriving at the specific ratios. i am not aware of the process by which these formulae were arrived at but will definitely let you know once i have a hands-on information on this.
Regards,
Ramya
From India, Mumbai
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