HR Metrics and Financials Flashcards

Revenue per employee is $250,000 and total compensation cost per employee is $50,000. What does the compensation-to-revenue ratio equal?

Answer: 20%

Compensation-to-revenue ratio = ($50,000 / $250,000) × 100 = 20%.

Which absenteeism rate formula is most widely used in HR analytics?

Answer: (Days absent / Days scheduled) × 100

The standard absenteeism rate = (total days absent / total scheduled workdays) × 100.

In workforce planning, a labor demand forecast that uses regression analysis is primarily based on:

Answer: Statistical relationships between business drivers and staffing needs

Regression analysis identifies statistical relationships between business variables (e.g., sales volume) and required staffing levels.

A training program costs $50,000 and generates $200,000 in measurable productivity gains. What is the training ROI?

Answer: 300%

Training ROI = ((Benefits − Costs) / Costs) × 100 = (($200,000 − $50,000) / $50,000) × 100 = 300%.

Which metric measures the percentage of open positions filled by internal candidates?

Answer: Internal fill rate

Internal fill rate measures what proportion of job openings are filled through internal mobility rather than external hiring.

An organization's benefits expense as a percentage of total compensation is 32%. If total compensation is $10 million, what is the benefits spend?

Answer: $3.2 million

$10,000,000 × 0.32 = $3,200,000 in benefits expenditure.

Which approach to HR budgeting starts from the prior year's budget and adjusts for expected changes?

Answer: Incremental budgeting

Incremental budgeting uses the prior period's budget as a baseline and adjusts it upward or downward for anticipated changes.