Time-to-fill represents the number of days from when the job requisition
was opened until the offer was accepted by the candidate. This number is
calculated using calendar days, including weekends and holidays.
Cost-per-hire represents the costs involved with a new hire. These costs
include the sum of advertising, agency fees, employee referrals, travel
cost of applicants and staff, relocation costs, and recruiter pay and
benefits divided by the number of hires.
Number of Positions Filled
Number of positions filled reflects the number of open positions for
which individuals were hired during the fiscal year. Open positions
could be filled either by internal or external candidates.
"Hired" means the individual accepted the position during the
fiscal year, but may not have started until the following year. This
would occur mostly with those candidates who accepted positions during
the last month of the organization's fiscal year.
HR Departments and Expenses
Total HR Staff
Total HR staff is the actual number of employees supporting the HR
function for an organizational level.
The HR-to-employee ratio provides a more manageable way to compare HR
staffing levels between organizations. It represents the number of HR
staff per 100 employees supported by HR in the organization. The number
is calculated by dividing the number of HR FTEs by the total number of
FTEs in the organization and multiplying the outcome by 100:
number of HR FTEs
Total number of Employee FTEs in the organization
HR Expense to Operating Expense Ratio
HR expense to operating expense ratio is calculated by dividing the
organization's total HR expenses by the operating expenses for a given
fiscal year. This ratio depicts the amount of HR expenses as a
percentage of total operating expenses, which is an indication of the
amount of dollars an organization invests in its HR function.
HR Expense per FTE
HR expense by FTE ratio represents the amount of human resource dollars
spent per FTE in the organization. It is calculated by taking the HR
expenses for a given fiscal year and dividing that by the number of FTEs
in the organization.
Health Care Data
Health Care Expense per All Employees
Health care expense per all employees is calculated by taking the total
health care expenses paid by the organization in a given fiscal year and
dividing that by the number of employees in that organizational unit.
Total health care expenses include both employee- and company-paid
premiums, stop-loss insurance and administrative fees. These expenses do
not include dental costs.
Health Care Expense per Covered
Health care expense per covered employees is calculated by taking the
total health care expenses paid by the organization in a given fiscal
year and dividing that by the number of employees who are enrolled in a
health care plan in that organizational unit. Total health care expenses
include both employee- and company-paid premiums, stop-loss insurance
and administrative fees. These costs do not include dental costs.
Percentage of Premiums Organization
Pays for Employee-Only Coverage
Percentage of premiums organization pays for employee-only coverage is
calculated by dividing the amount the organization pays for
employee-only coverage premiums by the total premium amount.
Percentage of Premiums Organization
Pays for Employee and Dependent Coverage
Percentage of premiums organization pays for employee and dependent
coverage is calculated by dividing the amount the organization pays for
employee and dependent coverage premiums by the total premium amount.
Projected Increase in Health Care
This percentage represents the expected increase in an organization's
health care expenses for a given fiscal year.
Compensation and Turnover Data
Annual Salary Increasse
Annual salary increase is the percentage of increase in salaries that an
organization expects to provide to its employees for a given fiscal
Annual Turnover Rate
Annual turnover rate is the rate at which employees enter and leave a
company in a given fiscal year. Typically, the more loyal employees are
to a firm, the lower the turnover rate. A 100% turnover rate from year
to year means that as many employees left the company as were hired. To
calculate annual turnover, first calculate turnover for each month by
dividing the number of separations during the month by the average
number of employees during the month and multiplying by 100: # of
separations during month ÷ average # of employees during the month x
100. The annual turnover rate is then calculated by adding the 12 months
worth of turnover percentages together.
Salaries as a Percentage of Operating
Salaries as a percentage of operating expense is calculated by taking
the total amount of employee salaries divided by the operating expense
for a given fiscal year.
In business, revenue is the amount of money that a company actually
receives from its activities, mostly from sales of products and/or
services to customers. To investors, revenue is less important than
profit, or income, which is the amount of money the company has earned
after deducting all of its expenses.
Revenue per FTE
Revenue per FTE is the total amount of revenue received during an
organization's fiscal year divided by the number of FTEs. This ratio
conceptually links the time and effort associated with the firm's human
capital to its revenue output. If the revenue-per-FTE ratio increases,
it indicates that there is greater efficiency and productivity because
more output is being produced per FTE. If the ratio decreases, it
indicates there is less efficiency and productivity.
Net income before taxes is the amount of revenue received during the
fiscal year minus the operating expenses during the fiscal year.
Net Income per FTE
Net income before taxes per FTE is the net income before taxes divided
by the number of FTEs. It calculates efficiency by taking net income
before taxes, which is the difference between gross revenue and
expenses, and divides the outcome by the number of FTEs. Unlike revenue
per FTE, which has only one factor--revenue, net income per FTE
comprises two factors, and it is best looked at over time.