Running head: MOD 1, HR APP 1 1

Module 1, HR Application 1

Dorothy Artis
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How could Human Resource metrics (see Exhibits 1.4 & 1.5 on pp. 11-12) be best used
across different organizations? Select two from among the types of organizations listed below
and compare/contrast which metrics would be more useful.

 A non-profit organization
 A small technology startup company
 A Fortune 500 company
 A for-profit medical office

Measuring the worth of human capital within an organization is, many times, lost in

most. When organizations view stock and net worth the focus is primarily on the bottom line

and how the organization fairs within the competitive market. Rarely is the human capital value

considered in the value of the organization. Human capital can be measured in metrics. In other

words, measures based on things such as absence rate, benefit cost, and training could be based

on a per employee basis to determine the cost or value to the company.

According to the text (Saint Leo University, 2015) there are “no perfect metrics” (p. 11).

Metrics are determined by the organization’s strategy. The outlook of the company, such as

whether the focus is on cost or growth, would determine specific metrics to measure. Taking a

closer look at various types of organizations can give insight to how well human resource

metrics can work for the organization.

Human Resource metrics in a non-profit organization

Within non-profit organizations, appealing to the board, donors, staff, and other key

stakeholders is important to continued success. Whenever the quantitative impact of HR metrics

is shared, then these same individuals can assist with advocating changes as well as increasing

productivity (Nonprofit HR, 2017). In a non-profit, the human capital is its greatest asset. It is

important to lay focus on the human capital in order to gain the most strategic value while

arming the individuals with what is needed to meet the mission of the organization.
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Choosing the right HR metrics will be determined my what is most important to the

organization achieving its goals. It was suggested by Nonprofit HR (2017) there are ten top

metrics which can aide in the success of an organization in providing information to the board.

These include:

1. Offer acceptance rate – this helps determine issues with recruitment process or

salary ranges for positions.

2. Temporary employees hired – this alludes to how many are hired throughout the

year and if it is possible to utilize some full-time staff instead of hiring temporary.

3. Diversity new hire ratio – this can assist with tracking the diversity and

affirmative action within the organization.

4. Average tenure of employees – this aims to focus on how long the employees

have been there which affects the opportunities for the organization.

5. Average age of employees/projected retirement age – this provides insight to the

future of the organization and what the employment needs will be.

6. Average promotion wait time – this can actually help motivate employees to see

what their opportunities will be.

7. Promotion ratio – this will answer how many have been promoted and what

training will it take to assist with promoting others.

8. First year resignation ratio – this can identify issues with recruitment and

onboarding. In a non-profit it is important to retain employees over the long-term

to grow the organization.

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9. One-year involuntary turnover ratio – this is similar to number eight and targets

the recruitment process ensuring the right candidates are hired.

10. Cost of HR per employee – this identifies the cost of salary and benefits per

employee. In a non-profit organization this is important due to budgetary

constraints. (Nonprofit HR, 2017)

Non-profit organizations are not that much different than regular corporations. The HR

metrics used to assist them with assessing the current situation as well as the future can be the

same for a regular corporation. It is a key component to ensure the culture and work environment

encourage stakeholders (board, staff, donors) to provide continued support for the organization’s

mission and vision (Morton, 2014). One valuable mention by Morton (2014) was the importance

of focusing the HR metrics on what leadership cares about instead of what HR cares about. It

reverts back to the quantitative portion of it.

Important focus for non-profits when defining the HR metrics is not only the top ten

mentioned above which can assist most any organization but questions like:

 What has to be created, programs or services, which will result in donors

providing money?

 Is our staff equipped with the skills and abilities to answer both short-term and

long-term demands within the community?

 Is the HR strategy focused on what will help the organization to succeed?

(Morton, 2014)
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Remembering that whatever metrics are measured and provided in a quantitative fashion will be

more appealing. HR metrics can help the non-profit to succeed in both the community and with

the board and staff.

Human Resource metrics in a fortune 500 company

Much of what is utilized for a Fortune 500 company is used in the non-profit organization

as well when it comes to HR metrics. CEOs are interested in the bottom line and what affects

that bottom line. According to an article by Min (2017) about 40% of Fortune 500 companies are

slated to go out business over the next ten years. With that in mind, it is imperative for these

companies to hire the right individuals. Looking at recruitment metrics could be crucial to the

failure or success of the company. Quality of hire could be the solely most important metric to

measure for the effectiveness of the recruiting department (Min, 2017). Measuring this metric

can be defined by focusing on these three specific areas:

 New hire retention – increasing in this area is important to increase quality. When

thinking of turnover, the costs are very high when having to replace employees at a large

percentage. Focus on this could help reduce cost which can grab attention of executives.

 Time to fill – reflects on the number of days it takes to fill a position from when it is

posted to acceptance. According to this article (Min, 2017) SHRM suggested it takes an

average of 42 days to fill a position. This could increase with u

 nemployment rates. This may be the easiest metric for a Fortune 500 company as there

are many avenues providing helps and aides for recruiting and job posting.

 Hiring satisfaction – this surveys the hiring managers based on the new hires’

performance. Productivity can be increased if the top performers contribute to the

company. Quantitative data can assist with this by calculating revenue per employee
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which is simply the total revenue divided by the number of employees. This reflects what

each employee may contribute to the bottom line.

Linking these metrics to organizational outcomes assists Fortune 500 companies with

understanding where they stand competitively and for the future. Quantifying the ROI focusing

on the recruiting portion will paint the picture necessary for Fortune 500 companies.

References

Min, J.-A. (2017, April 6). HOW TO LINK RECRUITING METRICS TO BUSINESS

OUTCOMES. Retrieved from REWORK TODAY'S TECHNOOGY IMPACTS

TOMORROW'S TALENT: https://www.cornerstoneondemand.com/rework/how-link-

recruiting-metrics-business-outcomes

Morton, L. B. (2014, June 20). HR Metrics for Nonprofits and NGOs. Retrieved from LinkedIn:

https://www.slideshare.net/LeslieBeckbridge/hr-metrics-for-nonprofits-and-ngos

Nonprofit HR. (2017, December 12). Using HR Metrics for Nonprofit Strategy and Planning.

Retrieved from nonprofit HR: https://www.nonprofithr.com/nonprofit-hr-metrics-2/

Saint Leo University. (2015). Strategic Issues in Human Resource Management (Custom).

Boston: Cengage Learning.