3. Measurement in HR
• Workforce planning
• Workforce performance and
productivity
• Workforce costs
• Organisational Performance
• Regulatory compliance
• Organisation Design And
Development
• Leadership ability
• Learning And Development
• Attraction and Recruitment
• Engagement and Well-being
4. Workforce Planning
1. Average time in current
management position
2. Average time to promotion
3. Career path ratio
4. High-performer turnover
rate
5. Minimum strength time
6. Progress against targets
7. Succession planning depth
8. Succession roles
9. Successors in place
10. Talent management index
This describes the continual
alignment of needs and priorities
of the organization with those of
its workforce to ensure it can
meet its legislative, regulatory,
service and production
requirements as well as its
organisational objectives.
5. Workforce planning
• Average time in current management position. The
average time that managers and executives have been in
their current positions, for example: Total time in
position for managers / Total number of managers
• Average time to promotion. The average time an
individual is in role before progress to a more senior
position, for example: Total time for progression
upwards / Number of promotions
• Career path ratio. A measure of the ratio of promotions
against sideways moves (transfers), to show the breadth
of capability and illustrate alternative development
opportunities to promotion, for example: Total
promotions / (Total promotions + total transfers)
• High-performer turnover rate. The rate at which the
organisation is losing talented employees, for example:
Total high-performer terminations / Average high-
performer headcount
• Minimum strength time. Measures minimum time in
post for managers in global key roles.
6. Workforce Planning
• Progress against targets. A measure of the number of
management trainees recruited against agreed local targets.
• Succession planning depth. A measure of the percentage of key
roles that have a succession pool of one or two unique
candidates, for example: Key roles with 2 successors in play /
Total number of key roles
• Succession roles. The number of roles identified for succession
with succession individuals allocated.
• Successors in place. A measure for the number of planned
successors for global key roles, for example: Number of planned
successors / Pivotal roles
• Talent management index. An index of defined talent measures
by the organisation that describes key aspects of the talent
management process from across the entire employee lifecycle.
This would comprise a combination of select key metrics,
weighted by importance and impact to the organisation. The
metrics describe the performance of individuals against role-
based objectives and targets, including operational and
behavioural aspects.
7. Workforce
performance
and productivity
1. Actual productivity
2. Behavioural performance
3. Effectiveness
4. Efficiency
5. Expected productivity
6. Labour utilisation
7. Overall labour
effectiveness.
8. Per-unit full-time
equivalents
9. Stakeholder satisfaction
10. Volume of work completed
This measures overall
performance against defined key
performance indicators for
individuals and roles, for
example, percentage of targets
met:
8. Workforce Performance And
Productivity
• Actual productivity. Measures real efficiency of
production, for example: Actual output / Resources
consumed
• Behavioural performance. Measures the
performance of individuals in line with defined
behaviours set by the organisation, for example: % of
employees demonstrating compliance with
organisational values and behaviours
• Effectiveness. Measures the utilisation of resources in
order to achieve the desired result, for example:
Actual output / Expected output x 100%
• Efficiency. Measures the achievement of either
maximum useful output from the resources devoted
to an activity, or the required output from the
minimum resource input, for example: Actual
resource used / Budgeted resource x 100%
• Expected productivity. This is the forecasting of
potential/desired productive effort, for example:
Expected output / Resources expected to be
consumed
9. Workforce Performance And
Productivity
• Labour utilisation. A measure of how employees
are assigned tasks and the efficiency at which they
are able to deliver against their tasked objectives –
this could address availability or performance of
employees.
• Overall labour effectiveness. Measures the
utilisation, performance, and quality of the
workforce and its impact on productivity, for
example:
• Availability = Time operators are working
productively / Time scheduled x 100%
• Performance = Actual output from operators /
Expected output (or labour standard) x 100%
• Quality = Saleable parts / Total parts produced
x 100% – Overall labour effectiveness =
Availability x Performance x Quality
10. Workforce Performance And
Productivity
• Per-unit full-time equivalents. This is a measure
of how many full-time employees (FTEs) are
required to fulfil a unit of work, for example:
Number of FTEs / Units produced
• Stakeholder satisfaction. A measure of
stakeholder warmth/engagement with the
organisation and an indicator of the quality of
relationships with key stakeholders, for example:
• % of stakeholders reporting positive
experience with employees
• % of stakeholders reporting that objectives
were met to the desired level or standard
• Volume of work completed. Measures the
completion of work against defined targets.
11. Workforce
costs
This can be described as the sum of all costs associated with the
workforce, including pay and benefits:
1. Employer costs. Taxes and insurances mandated by law and
regulation.
2. Total compensation. All direct and indirect compensation
received during a specified time period.
3. Total workforce cost. Total compensation cost + benefits
cost + other workforce costs.
12. Organisational Performance
1. Average response/customer service
time
2. Compound annual growth rate
3. Coverage
4. Customer/user service
5. Cycle time
6. Earnings before interest and tax (EBIT)
7. Earnings before interest, taxes,
depreciation and amortisation (EBITDA)
8. Market capitalisation
9. Organisation effectiveness
10. Organisational efficiency
11. Quality
12. Return on equity
13. Share performance
This is an analysis of an organisation’s
performance as compared with goals and
objectives. Within corporate
organisations, three primary outcomes
are analysed: financial performance,
market performance and shareholder
value performance (in some cases,
production capacity performance may be
analysed):
13. Organisational performance
• Average response/customer service
time. The average time it takes to
complete the desired service for the
customer/client, for example: Total time
serving customer / Total number of
customers
• Compound annual growth rate. A
measure of the annual growth of
investments.
• Coverage. Number of customers/clients
served, often by geography, business
unit, and so on, for example: Number of
customers in a specified region
14. Organisational Performance
• Customer/user service. Customer/user satisfaction can
be measured using a predefined survey.
• Cycle time. The time it takes for a process to be
completed, for example: Total time for processes / Total
number of processes undertaken
• Earnings before interest and tax (EBIT). A non-GAAP
(Generally Accepted Accounting Principles) measure of
operating profit. This measure does not include tax
burden or capital structure.EBIT = Revenue – operating
expenses or Net income + interest + taxes
• Earnings before interest, taxes, depreciation and
amortisation (EBITDA). A non-GAAP measure of
profitability, which can be used to compare companies
and industries from the external/investor perspective.
This measure is best used in combination with other
financial performance measures. EBITDA = Revenue –
expenses (excluding tax, interest, depreciation and
amortisation)
15. Organisational Performance
• Market capitalisation. Measures the market value of a
company’s outstanding shares, and an indicator of company
size: Stock price x total number of shares outstanding
• Organisation effectiveness. This measures the extent to which
the service provided meets the objectives and/or expectations
of the organisation and/or a customer.
• Organisational efficiency. This measures how well the
organisation is using its resources to meet its strategic
objectives. This includes both its financial and human
resources.
• Quality. The proportion of service provided without error:
• The proportion of services provided without a
complaint or the ratio of complaints to total services
provided
• The proportion of services provided at a specified
standard
• The proportion of services provided with compliments
from customers.
16. Organisational performance
• Return on equity. A measure of a corporation’s
profitability. This reveals how efficient an
organisation is at making profit: Profit / Amount of
equity (investment)
• Share performance. Measures the value of
company shares, and therefore the value of the
organisation. Share performance can include
measures such as:
• Earnings per share. A measure of company
profit. This shows the amount of money
being made per share, but does not include
information about expenses: Earnings per
share = (Profit – dividends) / Number of
outstanding shares
• Price to earnings ratio. A measure which
compares the current price of the company
with its per share earnings: Price per share /
Earnings per share
17. Regulatory Compliance
1. Competence
compliance
2. Critical people risk
3. Departmental ratios
4. Headcount
5. Health and safety
measures
6. Leadership diversity
7. Modes of employment
8. Workforce composition
and diversity
This is defined as an organisation’s adherence to
laws, regulations, guidelines and specifications
relevant to its human capital. Violations of
compliance regulations often result in legal
punishment, including fines. Organisations
operating in different sectors and geographical
regions may need to adhere (and measure their
adherence) to different regulatory frameworks:
18. Regulatory compliance
• Competence compliance. Professional
competence required to practise, for
example, professions such as law or
medicine requiring a licence to operate.
• Critical people risk. In high-stress
environments, measures regarding
behavioural risks can help to monitor
behaviour of individuals against predefined
values (included as part of the broader
culture category).
• Departmental ratios. These may include
gender ratios at senior leadership level.
• Employee profile. Measures could include
factors such as age, gender, race, sexuality,
for example: % of employees between 18
and 25
19. Regulatory
Complianc
e
• Headcount. This is typically the number of employees.
• Health and safety measures. Number of incidents required to
be reported under statute, for instance, reporting of injuries,
diseases and dangerous occurrences, for example: Number of
serious incidents in a given year
• Leadership diversity. For example, percentage of women
employees in senior/leadership positions.
• Modes of employment. For example, 45:1 full-time to part-
time labour split.
• Workforce composition and diversity. This describes the
makeup of an organisation’s workforce, which includes basic
demographic measures and measures of diversity
20. Organisation Design And
Development
This describes the planned and systematic
approach to enabling sustained
organisation performance through the
involvement of its people. Organisational
design and development activities include
organisational redesign and restructuring,
organisation strategic alignment, and job
design:
1. Evaluation of organisation
development activity
2. Goal consensus/conflict
3. Management ratio/span of control
4. Strategic delivery
21. Organisation Design And
Development
• Evaluation of organisation development activity. A
measure of the impact of organisation development
investment, including through return on investment, and
additional programme key performance indicators, for
example: Measurement of the change / Uplift in specified
KPIs following development activities
• Goal consensus/conflict. A measure of consensus and
conflict between organisational goals and priorities and
individual objectives. It is a measure of co-operation
between teams and departments, for example: Number of
goals in conflict vs Number of goals in consensus
• Management ratio/span of control. Measures the ratio of
subordinates per manager; it is a measure of management
depth and breadth, for example: Total management and
non-management population / Total management
population with direct reports
• Strategic delivery. Measures the number of strategic
priorities delivered within the stated timescale as a measure
of organisational effectiveness, for example: Number of
priorities delivered / Number of priorities outstanding
22. Leadership ability
Leadership ability is the capacity to establish
direction, influence, and align others towards
a common aim, to motivate and commit them
to action, and make them responsible for
their performance. It is a mix of skills and
knowledge, applied with authentic behaviour
and attitude, which enables individuals to
lead others towards a stated objective or goal:
1. Development plan impact
2. Executive stability ratio
3. Leadership bench strength
4. Leadership review process measures
5. Quality of leadership
6. Talent distribution
23. Leadership ability
• Development plan impact. A measure of the success rate for
achieving agreed development plans for progression managers, for
example: Number of development plan objectives completed to good
quality / Number of development plan objectives set
• Executive stability ratio. A measure of the ratio of executives with
less than three years’ experience set against the number of
executives with more than three years’ experience.
• Leadership bench strength. Measures the number of leaders trained
to a defined standard who are exhibiting required behaviours.
• Leadership review process measures. Measures defined by the
organisation to assess the quality of the leadership process, for
example, measurement of the quality and outcomes of projects.
• Quality of leadership. An assessment through performance
management processes including 360 assessment, for example: % of
leaders achieving the defined high leadership grade
• Talent distribution. A measure of where identified talented
individuals are deployed in pivotal roles; or the proportion of top
managers in pivotal roles, or global key roles, as defined by the
organisation’s HR and talent development strategy, for example:
Number of defined top managers / Total number of key roles
24. Learning And Development
Learning and development is the process
that builds the workforce capabilities, skills
or competencies required to ensure a
sustainable, successful organisation:
1. Capability development
2. Hours’ training received
3. Improvement in desired behaviours
4. Improvement in knowledge.
5. Return on investment
6. Distribution of qualifications in the
workforce
7. Technical qualifications
25. Learning And Development
• Capability development. A measure of
increases in job-related capabilities, for
example: Change in number of
capabilities / Person
• Hours’ training received. Hours’ or days’
training per person over a given time
period, for example: Number of training
days / Employees in given time period
• Improvement in desired behaviours.
Measures whether employees are
behaving in the desired way alongside
the required values of the organisation,
for example: % of employees reporting
improvement in operation with desired
behaviours
26. Learning And Development
• Improvement in knowledge. A measure of the impact
of training on the knowledge of individuals. This is
also a measure of training effectiveness, for example:
% of employees demonstrating an improved
understanding of the topic being trained
• Return on investment. Measures the benefits that
are realised as a result of investment in learning and
development programmes, for example: (Realised
benefits – costs) / Costs x 100%
• Distribution of qualifications in the workforce.
Measure taking into account which employees hold
qualifications and where in the organisation these are
distributed, for example: Number of employees with
graduate degree qualification or above
• Technical qualifications. This is a measure of the
technical capability available to the organisation for
mobilisation, for example: Project management
trained managers / Total number of managers
27. Attraction and recruitment
This initial stage of the employee lifecycle
provides the business with important data as to
the incoming skills and talent available to the
business:
1. Cost per hire
2. Employer brand warmth
3. Rate of retention of new starters
4. Recruitment effectiveness
5. Stability index
6. Talent identification
7. Time to competence
8. Time to fill (average)
9. Turnover (annual)
28. Attraction and Recruitment
• Cost per hire. The total cost of recruiting and
onboarding a new employee, for example:
Recruitment costs / (Compensation cost + benefit
cost)
• Employer brand warmth. A measure of the employer
brand, important for attracting new talent to the
organisation, for example: % of new recruits joining
organisation as a result of targeted role
advertisements
• Rate of retention of new starters. Measures the
percentage of new starters retained over a given
timeframe. It is particularly useful in service industries
with traditionally high levels of employee turnover,
for example: Number of new starters leaving within 6
months / Total number of new starters
• Recruitment effectiveness. Measures the satisfaction
of hiring managers with the recruitment process and
its outcome, for example:
• % satisfaction with hired employee
• % satisfaction with hiring process.
29. Attraction and Recruitment
• Stability index. Indicates the retention rate of
experienced employees. Like turnover rates, this can be
used across an organisation as a whole or for a particular
part of it. The usual calculation for the stability index is:
Number of staff with service of one year or more / Total
number of staff in post one year ago x 100%
• Talent identification. Measures the development of
people in priority talent segments, for example: % of
identified talented individuals per department or team
• Time to competence. The time it takes new recruits to
reach an adequate level of capability to complete their
role.
• Time to fill (average). The time taken to fill an open
position, for example: Total days taken to fill a role /
Number of successful new hires
• Turnover (annual). A measure of the rate of employees
leaving the organisation over a one-year period: Total
number of leavers over period / Average total number
employed over period x 100%
30. Engagement and well-being
Engagement and well-being involves a workplace
approach resulting in the right conditions for all
employees of an organisation to give their best each day,
committed to their organisation’s goals and values,
motivated to contribute to organisational success, with
an enhanced sense of their own well-being, and the well-
being of others:
1. Absenteeism rate
2. Commitment
3. Employee assistance service usage rate
4. Engagement index score
5. Ill-health retirements
6. Mental health well-being rate
7. Quality of support from employee assistance
service
8. Voluntary resignations
31. Engagement and Well-Being
• Absenteeism rate. A measure of number of incidences when
employees fail to report for work when scheduled to do so. This
can also be measured and reported by job category or by
performance category, for example: Number of days lost in
specific period / Total number of staff working days available in
the period
• Commitment. A measure of people responding that they have
high levels of commitment, satisfaction and recognition, for
example: % positive opinion survey responses
• Employee assistance service usage rate. Number of incidents
reported during a defined period to the employee assistance line,
for example: Number of assistance issues per month
• Engagement index score. An index score of the responses to
questions exploring aspects of their employment that may
impact on their engagement. These can often include
organisation purpose, team relationships, inclusion and fair
treatment, relationship with manager, relationship with work,
and quality of development opportunities; for example, an
engagement index may indicate employees are 70% engaged.
32. Engagement and Well-Being
• Ill-health retirements. Measures the number of
retirements due to issues relating to ill mental or
physical health, as a result of work.
• Mental health well-being rate. Days lost due to
incidences of low mental well-being, for example:
Number of days lost per year
• Quality of support from employee assistance
service. Measures the quality of the employee
assistance service as perceived by the employee,
for example:
• % satisfaction with support received
• % likelihood of recommending the service
to a colleague.
• Voluntary resignations. The number of voluntary
resignations as a result of dissatisfaction with
and/or health standards and work.