HR Formulas
1. Attrition Rate
Total number of people left the organization in the period / (Headcount at the start of the period + Heads recruited during the period)
2. Manpower Turnover
Total number of 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 added 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
Courtesy..
ANIL KUMAR
Senior Associate -Business Resource Group.
TCGIvega Information Technologies Pvt.Ltd.
Global Village,
Mysore Road,
Bangalore 560059
From India, Coimbatore
7331. Attrition Rate
Total number of people left the organization in the period / (Headcount at the start of the period + Heads recruited during the period)
2. Manpower Turnover
Total number of 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 added 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
Courtesy..
ANIL KUMAR
Senior Associate -Business Resource Group.
TCGIvega Information Technologies Pvt.Ltd.
Global Village,
Mysore Road,
Bangalore 560059
From India, Coimbatore
the number of total hours worked divided by the maximum number of compensable hours in a work year as defined by law. For example, if the work year is defined as 2,080 hours, then one worker occupying a paid full time job all year would consume one FTE. Two employees working for 1,040 hours each would consume one FTE between the two of them.
http://en.wikipedia.org/wiki/Full-time_equivalent
From Pakistan, Lahore
http://en.wikipedia.org/wiki/Full-time_equivalent
From Pakistan, Lahore
Can somebody tell me what does Full Time Equivalents stand for??..Its appearing in the Human Capital Cost formula...thanks...happy learning.... chilly_fry
From China, Qinhuangdao
From China, Qinhuangdao
FTE stands for the number of billable seats. E.g. a 100 seater call center is manned by 100*1.25 = 125 agents. The 25 additional will not be paid for by the client, but are required for managing breaks, unscheduled leaves etc. You revenue calculation is done keeping in mind the revenue generated for 100 seats vs expense for 125 seats. Hope it helps.
From India, Ahmadabad
From India, Ahmadabad
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Attrition-rate- in-different-se ctors_906.jpg
Attrition-rate- Template.xls
Attrition Rate formula.pdf