Rather, the adoption of an HR measurement framework is about extending the credibility of HR on the one hand, and on the other placing human capital firmly and strategically on the organisation’s balance sheet. Measurement represents a powerful tool by which HR can change the way it works and the value the organisation perceives it to create.
What Are HR Metrics? HR metrics, or human resources metrics, are key figures that help organizations track their human capital and measure how effective their human resources initiatives are. Examples of such data include turnover, cost-per-hire, benefits participation rate, and others (we’ll get into more of them later).
To best calculate, take the total compensation of your HR team members, or the portion of the job of the person who manages these HR duties, and divide by the number of employees on payroll. Cost of HR per employee = Total HR salary and benefits ÷ Number of employees