CHAPTER ELEVEN
Measurements for the Human Resources Department
THIS CHAPTER FOCUSES ON the measurements that can be used to determine the performance of the human resources department. The primary focus of the measurements described here is the department's ability to efficiently hire employees. Also included is employee turnover, which is perhaps the most popular employee-related measurement in use today.
The measurements discussed in this chapter include:
| Employee Turnover Average Time to Hire Late Personnel Requisitions Ratio Sendouts per Hire | Intern Hiring Percentage Ratio of Support Staff to Total Staff Employment Cost Effectiveness |
EMPLOYEE TURNOVER
Description: In today's knowledge economy, a company's key assets (employees) walk out the door every night. Given the high cost of recruiting and retaining qualified employees, a major performance measure is a company's ability to keep the employee turnover level as low as possible.
Formula: Summarize the number of full-time equivalent (FTE) employees leaving the firm during the measurement period, and divide by the average number of employees on staff during that period. The formula is:
A full-time equivalent is the number of full-time employees who could have been employed if the reported number of hours worked by part-time employees had been worked by full-time employees.
Example: Teacher turnover for all Nebraska school ...
