Global hr metrics_survey_report_2012

Global HR Metrics

Survey Report

Emre Kavukcuoglu

No part of this publication may be reproduced or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Emre Kavukcuoglu

Introduction

• The survey, which was conducted in May-June 2012, is

based on responses from 160 organizations across 7

continents.

• Aim of this research was to understand the HR

measurement and reporting practices and thus creating

a database based on company headcount sizes.

• For this purpose; 25 HR metrics were asked to be rated.

Also an open ended section enabled participants to

share their additional metrics.

• In this report, you may find the detailed survey findings.

Demographics • Out of 160 Organizations;

– 43% from Asia

– 33% from North America

– 9% from Europe

– 7% from Middle East

– and 3% from Africa, Latin America, Australia/New Zealand (from each continent)

69

52

14 11

5 5 4

0

10

20

30

40

50

60

70

80

Asia North America Europe Middle East Africa Latin America Australia/NewZealand

Demographics • Out of 160 Organizations;

– 44% with an headcount size of 1.000 +

– 24% less than 200 employees

– 32% was between 200 - 500

3

13

23 24

26

38

8

25

0

5

10

15

20

25

30

35

40

2-9 10-49 50-199 200-499 500-999 1.000-4.999 5.000-9.999 10.000+

Key Findings

• General reporting practice is on monthly basis (more than half of

the respondents; 55%)

• 25% of the Organizations are reporting quarterly.

• And there were 15 Organizations which are not reporting but

following some HR metrics.

6%

55% 9%

25%

4%

Annual

Monthly

Not reporting

Quarterly

Semi annual

Key Findings-II

• The most rated HR metric was Headcount. Almost 80% of the

Organizations are reporting Headcount figures.

• Relatively small portion of the survey participants (50 and below)

are following;

– Revenue/Headcount

– Engagement Index

– % of Positions with Succession Plans

– High Performer Turnover Rate

– Talent Management program Costs

– High Potential Turnover Rate

– First year of Service Turnover Rate

– Bench Strength for critical positions

– % of Employees eligible for retirement in next 5 yrs.

– HCROI

– HEVA

Key Findings-II

125

122

81

74

73

72

70

69

66

64

60

57

56

51

49

42

39

37

34

34

32

31

28

8

2

0 20 40 60 80 100 120 140

Headcount

Turnover Rate

Voluntary Turnover Rate

Resignation Reasons

Time to Fill

HR:Headcount Ratio

Workforce Profile (Age,Gender,Education

Overtime Costs

L&D Hours per Headcount

Cost per Hire

Labor Cost/Revenue

L&D Investment per Headcount

FTE

Internal promotion rate

Revenue/Headcount

Engagement Index

% of Positions with Succession Plans

High Performer Turnover Rate

Talent Management program Costs

High Potential Turnover Rate

First year of Service Turnover Rate

Bench Strength for critical positions

% of Employees eligible for retirement in next 5 yrs.

HCROI

HEVA

Key Findings-III

• Below table shows the Metrics rankings based on

company headcount sizes

HR Metrics Rankings by Company Size 10.000+ 1.000-4.999 500-999 200-499

Headcount 1 1 1 1

Turnover Rate 2 2 2 2

FTE 3 11 11 17

Internal promotion rate 4 14 12 18

L&D Hours per Headcount 5 8 7 11

Engagement Index 6 12 21 20

Voluntary Turnover Rate 7 3 5 4

Time to Fill 8 5 4 9

Workforce Profile (Age,Gender,Education 9 10 9 3

HR:Headcount Ratio 10 6 8 14

Resignation Reasons 11 4 3 6

% of Positions with Succession Plans 12 20 18 21

Labor Cost/Revenue 13 13 14 8

First year of Service Turnover Rate 14 22 20 16

L&D Investment per Headcount 15 16 10 5

High Performer Turnover Rate 16 18 15 15

Cost per Hire 17 9 13 12

Bench Strength for critical positions 18 23 23 13

Overtime Costs 19 7 6 7

Revenue/Headcount 20 15 16 10

Talent Management program Costs 21 19 17 23

% of Employees eligible for retirement in next 5 yrs. 22 21 19 22

High Potential Turnover Rate 23 17 22 19

HCROI 24 24 24 24

HEVA 25 25 25 25

Asia

Survey Report


Demographics-Asia • 69 Organizations participated into the survey

• 46 out of 69 represented companies with headcount size of 500+

• Distribution of the participants based on headcount size is as follows:

17

10

5

6

4

15

12

0

2

4

6

8

10

12

14

16

18

1.000-4.999 10.000+ 10-49 200-499 2-9 5.000-9.999 500-999 50-199

Key Findings-Asia

• 52% of the Asian Organizations are reporting on monthly basis

• 10% are not reporting at all.

• Quarterly reporting is represented by 16 companies

9%

52% 10%

23%

6%

Annual

Monthly

Not reporting

Quarterly

Semi annual

Key Findings-Asia • The most rated HR metric was Headcount, followed by Turnover

Rate and HR to Headcount Ratio.

2

4

11

13

14

14

15

15

17

19

21

23

24

25

26

27

28

28

32

33

34

35

37

49

52

0 10 20 30 40 50 60

HEVA

HCROI



FTE





Engagement Index


Revenue/Headcount


Overtime Costs


Time to Fill


Labor Cost/Revenue

Resignation Reasons



Cost per Hire

HR:Headcount Ratio

Turnover Rate

Headcount

North America

Survey Report


Demographics-N.America • 52 Organizations participated into the survey



11

10

4

10

3

2

5

7

0

2

4

6

8

10

12

1.000-4.999 10.000+ 10-49 200-499 2-9 5.000-9.999 500-999 50-199

Key Findings-N.America

• 58% of the American Organizations are reporting on monthly basis

• 12% are not reporting at all.


2%

58% 12%

27%

2%

Annual

Monthly

Not reporting

Quarterly

Semi annual

Key Findings-N.America • The most rated HR metric was Headcount, followed by Turnover

Rate and Voluntary Turnover Rate.

0

2

3

6

9

9

9

10

10

10

11

12

12

12

15

15

17

18

20

21

24

26

32

40

43

0 5 10 15 20 25 30 35 40 45 50

HEVA

HCROI



Engagement Index








Revenue/Headcount

Cost per Hire


Labor Cost/Revenue

HR:Headcount Ratio


Resignation Reasons

Overtime Costs

FTE

Time to Fill


Turnover Rate

Headcount

Europe

Survey Report


Demographics-Europe • 14 Organizations participated into the survey



3

1 1

4

2 2

1

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

1.000-4.999 10.000+ 10-49 200-499 2-9 5.000-9.999 500-999 50-199

Key Findings-Europe

• 64% of the European Organizations are reporting on monthly basis


64%

29%

7%

Annual

Monthly

Not reporting

Quarterly

Semi annual

Key Findings-Europe • The most rated HR metric was Turnover Rate, followed by

Headcount and FTE.

0

1

2

2

2

2

3

3

3

4

4

4

4

5

5

5

5

5

7

7

7

8

9

11

12

0 2 4 6 8 10 12 14

HEVA

HCROI




Cost per Hire


HR:Headcount Ratio



Engagement Index



Time to Fill


Revenue/Headcount


Labor Cost/Revenue

Resignation Reasons


Overtime Costs


FTE

Headcount

Turnover Rate

Middle East

Survey Report


Demographics-M.East • 11 Organizations participated into the survey



5

2

1

2

1

0

1

2

3

4

5

6

1.000-4.999 10.000+ 10-49 200-499 2-9 5.000-9.999 500-999 50-199

Key Findings-M.East

• 64% of the Middle Eastern Organizations are reporting on monthly

basis

• Annual reporting is represented by 2 companies

18%

64%

9%

9%

Annual

Monthly

Not reporting

Quarterly

Semi annual

Key Findings-M.East • The most rated HR metric was Cost per Hire, followed by Time to

Fill and Resignation Reasons.

0

0

3

3

3

4

5

5

5

5

6

6

6

6

6

7

7

7

8

9

9

9

10

10

10

0 2 4 6 8 10 12

HCROI

HEVA

FTE







Revenue/Headcount

Engagement Index







Labor Cost/Revenue

Overtime Costs

Turnover Rate

Headcount

HR:Headcount Ratio

Resignation Reasons

Time to Fill

Cost per Hire

Epilogue

• Many thanks to the participants of the survey. The report would be meaningless without

their support.

• Some key takeaways:

– As HR, we are not really focusing on measuring the value added or on predictive metrics.

– This is obvious when going through the least cited HR metrics list.

– We should be more looking at Revenue productivity, human capital value added, high-potential/high performer

employee moves, succession planning and finally at the success of our talent management initiatives.

– Headcount, turnover rates, FTE are important but not sufficient, because they don’t tell you anything about the

future. By these means, you will be measuring only the present time. As HR,we should be giving data for future

readiness of our Organizations.

– Finally, we should report senior management on a periodical basis; not reporting should not be an option for us.

• More HR surveys will be conducted on http://www.hragenda.net

• I also invite you to join http://twitter.com/hr_agenda

• You can send your requests or comments to me via

[email protected]

http://www.hragenda.net/

http://twitter.com/hr_agenda

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Global hr metrics_survey_report_2012