HR Metrics and Financials Flashcards

A scorecard shows that the engagement survey response rate dropped from 80% to 60%. HR should first investigate:

Answer: Possible trust or communication issues affecting participation

A significant drop in response rate often signals employee distrust or disengagement, which is the root issue to address before survey mechanics.

Which metric is used to assess whether succession planning is robust enough to fill critical roles?

Answer: Bench strength ratio

Bench strength ratio measures the number of ready successors available for critical positions, indicating succession planning depth.

HR reports a 'yield ratio' of 25% from phone screens to job offers. If 200 candidates were screened, how many received offers?

Answer: 50

200 candidates × 0.25 yield ratio = 50 candidates received job offers.

Which HR financial concept refers to the fixed costs that remain constant regardless of headcount fluctuations?

Answer: Overhead or fixed labor costs

Fixed labor costs (overhead) such as HR system licenses or fixed salaries do not change proportionally with headcount.

An organization measures 'span of control' at 1:12 (manager to direct reports). Compared to an industry benchmark of 1:8, this suggests:

Answer: Leaner management structure with possible oversight risk

A wider span of control (1:12 vs. 1:8) means fewer managers per employee, reducing supervisory costs but potentially straining oversight quality.

When HR calculates 'fully loaded' cost per employee, which additional cost element is included beyond base salary?

Answer: Benefits, taxes, and overhead allocated to each employee

Fully loaded cost includes base salary plus benefits, payroll taxes, and allocated overhead costs associated with each employee.

Which metric tracks how long it takes from a job requisition being opened to the new hire's first day of work?

Answer: Time-to-fill

Time-to-fill measures the number of days from when a job requisition is opened until the position is filled (candidate's start date).