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 - Non-human 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 - Non-human 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.
Regards,
Rohit Lakhotia
From India, Calcutta
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263Total 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 - Non-human 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 - Non-human 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.
Regards,
Rohit Lakhotia
From India, Calcutta
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Thanks, Rohit. A really useful formula for any HR person. Just wanted to know one thing, is this formula for attrition correct, which is the number of people attrited divided by the average of headcounts (opening headcount + closing headcount / 2). In my current organization, we use this formula only...
From India, Delhi
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From India, Delhi
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Thank you Rohit. Cud u also pls help me out with some good organization structures if u come across any as I am just a fresher and have joined a organization just few days back.
From India, Mumbai
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From India, Mumbai
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Hi Kalyani, Attached the hiring calculator, pls find. Thanks
From Kuwait, Kuwait
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From Kuwait, Kuwait
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Dear All, Can you help me to write an essay on "Why do you intend to pursue studies in MBA program". I would be very thankful to you all. Thanks Aslam
From Pakistan, Karachi
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From Pakistan, Karachi
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Mr. Lakhotia,
I hope this is the best combination of formulas I have ever seen. I also went through some of your threads and found that it's awesome. Keep up the good work. My best wishes are with you.
From China
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I hope this is the best combination of formulas I have ever seen. I also went through some of your threads and found that it's awesome. Keep up the good work. My best wishes are with you.
From China
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Dear Rohit,
Thank you so much for your valuable post. The formulas are really useful. I need one more help, can you or anyone suggest what is the normal attrition value and turnover value for a healthcare industry?
Regards,
Lakshmi
From India, Madurai
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Thank you so much for your valuable post. The formulas are really useful. I need one more help, can you or anyone suggest what is the normal attrition value and turnover value for a healthcare industry?
Regards,
Lakshmi
From India, Madurai
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In human capital value added, there is a formula which states nonhuman expenses. Can you please explain the meaning of the term? What is contingent labor cost?
Please provide your reply.
Regards,
Venkat
From India, Madras
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Please provide your reply.
Regards,
Venkat
From India, Madras
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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.
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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.
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1. 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)
2. 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
3. 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
4. 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
5. Separations
Separation Rate
(Voluntary Separations + Involuntary Separations) / Head Count
Voluntary Separate Rate
Voluntary Separations / Head Count
Involuntary Separate Rate
Involuntary Separations / Head Count
Voluntary Separations by Length of Service
Voluntary Separations by Length of Service by Category / Voluntary Separations
6. 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
Collegel 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 / (Internall 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 Sing-on Bonus / Total Hires
Supervisor Sign-on Bonus Percentage
Supervisor Hires Receiving Sing-on Bonus / Supervisor Hires
Executive Sign-on Bonus Percentage
Executive Hires Receiving Sing-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
7. 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
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)
2. 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
3. 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
4. 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
5. Separations
Separation Rate
(Voluntary Separations + Involuntary Separations) / Head Count
Voluntary Separate Rate
Voluntary Separations / Head Count
Involuntary Separate Rate
Involuntary Separations / Head Count
Voluntary Separations by Length of Service
Voluntary Separations by Length of Service by Category / Voluntary Separations
6. 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
Collegel 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 / (Internall 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 Sing-on Bonus / Total Hires
Supervisor Sign-on Bonus Percentage
Supervisor Hires Receiving Sing-on Bonus / Supervisor Hires
Executive Sign-on Bonus Percentage
Executive Hires Receiving Sing-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
7. 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
From India, Bangalore
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HR KRAs - 2007 (Final1).xls