HR Metrics and Analytics Quick Reference
Data-driven HR is a core component of the Business domain on the SHRM-CP and SHRM-SCP exams. This cheat sheet covers the most commonly tested metrics, formulas, and analytics concepts.
Core HR Metrics and Formulas
| Metric | Formula | What It Measures |
|---|
| Turnover Rate | (Number of separations / Average headcount) x 100 | Rate at which employees leave the organization |
| Voluntary Turnover Rate | (Voluntary separations / Average headcount) x 100 | Rate of employee-initiated departures |
| Retention Rate | ((Headcount at start - Separations) / Headcount at start) x 100 | Percentage of employees who remain over a period |
| Cost-Per-Hire | (Internal recruiting costs + External recruiting costs) / Total hires | Average cost to fill a position |
| Time-to-Fill | Days from job requisition approval to offer acceptance | Efficiency of the recruiting process |
| Time-to-Productivity | Days from hire date to full performance level | Effectiveness of onboarding |
| Absence Rate | (Total days absent / Total workdays available) x 100 | Workforce availability and engagement |
| Revenue Per Employee | Total revenue / Total FTEs | Workforce productivity and efficiency |
| Human Capital ROI | (Revenue - Operating expenses - Compensation) / Compensation | Return on investment in human capital |
Workforce Planning Metrics
| Metric | Formula | Purpose |
|---|
| HR-to-Employee Ratio | Number of HR FTEs / Total FTEs x 100 | Benchmark: typically 1:100 (varies by industry) |
| Compa-Ratio | (Employee salary / Midpoint of pay range) x 100 | 100% = at midpoint; below 100% = below market |
| Yield Ratio | (Applicants at next stage / Applicants at current stage) x 100 | Effectiveness of each recruiting step |
| Offer Acceptance Rate | (Offers accepted / Offers extended) x 100 | Competitiveness of compensation and employer brand |
| Internal Fill Rate | (Internal hires / Total hires) x 100 | Strength of succession planning and development |
| Training Cost Per Employee | Total training spend / Total FTEs | Investment in employee development |
Levels of HR Analytics
| Level | Description | Example |
|---|
| Descriptive | What happened? (Historical data, reports, dashboards) | Turnover was 18% last quarter |
| Diagnostic | Why did it happen? (Root cause analysis) | Turnover spiked because of a compensation gap in the engineering team |
| Predictive | What is likely to happen? (Statistical models, forecasting) | Flight risk model shows 25% of top performers may leave in 6 months |
| Prescriptive | What should we do? (Recommendations based on data) | Implement targeted retention bonuses for high-flight-risk employees |
Key Analytics Concepts for SHRM
- Correlation vs. Causation: Just because two variables move together does not mean one causes the other. Always investigate further.
- Benchmarking: Comparing organizational metrics against industry standards, competitors, or internal historical data
- Leading vs. Lagging Indicators: Leading indicators predict future outcomes (engagement scores); lagging indicators measure past results (turnover rate)
- Data Integrity: Ensure accuracy, completeness, and consistency of HR data before making decisions
- Balanced Scorecard: Framework linking financial, customer, internal process, and learning/growth perspectives to strategy
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