Running head: MOD 1, HR APP 1 1

Module 1, HR Application 1

Dorothy Artis
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Analyzing the value of human capital within a company is, often, elusive in most. When

companies/organization review stock and net value the focus is objectively at the foot line and

how the company competes with the competitive market. Seldom is human capital worth well

thought-out in the organization value. Measurement in human capital is done metrics. To add on

that, measures based on items such as benefit cost, absence rate, and training could be grounded

on an individual employee basis to determine the worth, cost or value to the organization.

As the article (Saint Leo University, 2015) suggests there exists “no perfect metrics” (p.

11). Determination of metrics is done by the company’s strategy. The view point of the

organization, such as point of focus, would determine particular metrics to be measured. looking

at the different types of companies can offer solid perception to what extent human resource

metrics benefit an organization.

Metrics of human resource in non-profiting organization

Within a non-profiting company, engaging the donors, board, staff, and other significant

stakeholders is imperative to thriving success. Each and every time the quantifiable effects of

human resource metrics is publicized, the participating personnel can assist with backing change

as well as promoting improved efficiency (Nonprofit HR, 2017). Within the non-profiting

organization, human capital is its most precious asset. It is vital to remain focused on the human

capital so as to gain optimum strategic significance while equipping each individual with the

necessities required to achieve the organizations mission and objectives.

Selecting the appropriate HR metrics should be determined by what a company need so

as to efficiently and effectively achieve its goals. As it was suggested by Nonprofit HR (2017)

there exists ten best fitting metrics to help a company in providing intel to the board.
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These include:

1. Acceptance rate of officers – it helps in determining and solving issues associated

with employment process and salary ranges.

2. Temporal hiring of employees – it takes into account the availability of employees

hired yearly and the possibilities of acquiring full time employees in place of

hired personnel

3. Multidisciplinary ratio of hire – it takes into consideration of diversification

within the company

4. Average tenure of employees – this investigates the time factor of employee

employment which may affect a company’s opportunities.

5. Age factor/retirement age projection – this will account for the future needs of the

company and the then needs of the employees.

6. Mean wait time for promotion – it is used as a motivation as employees can

analyze their future opportunities.

7. Ratio of promotion – this evaluates the number of employees who will be

promoted and the prerequisites for getting a promotion.

8. Newbie resignation ratio – it identifies recruitment and other onboarding issues.

Within a non-profiting company it is paramount to retain long term employment

to facilitate growth

9. One-year involuntary turnover ratio – it ensures that the right person gets to the

right field of expertise.

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10. HR cost per employee – it helps combat other budgetary challenges by evaluating

the employee’s salary (Nonprofit HR, 2017)

Non-profiting companies have some similarities with regular corporations. The HR

metrics that they use to analyze their current needs taking into consideration the future needs of

the companies are similar to those used in regular corporations. It is a vital element to guarantee

the culture and the working environs stimulates stakeholders (donors, board, staff) to continue

providing aid for the company’s mission and vision (Morton, 2014). One prized reference by

Morton (2014) was the significance of concentrating the HR metrics to what the leadership

would care about rather than what the HR cared about. It reverts back to the quantifiable

percentage of it.

Not only the above mentioned important focus aid at fitting the best HR but also

questions as follows:

 What can be created to attract investments from donors?

 Does the organization employees meet the needs and demands of the community?

 Is the main focus of the HR in the company’s success?

(Morton, 2014)

Human Resource metrics in a fortune 500 company

The fortune 500 organization shares most of the HR metrics with the no profiting

companies. A company’s senior management is interested with the end point and what is at the

end points. As pointed out by (Min, 2017) about 40% of Fortune 500 companies are expected to

run out of business in the next one decade. Bearing with that fact, it is of utmost importance for

these organizations to get the right people within their ranks. The failure of an organization could
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be attributed to its recruitment metrics strategy. while the effectiveness of the recruiting

department could be primarily analyzed by the quality of hire (Min, 2017). Measuring this metric

can be defined by focusing on these three specific areas:

 First-hand hire retention – in this area, quality is improved. When thinking of income, the

cost escalates if you to mass replace the workers. With fast hand hire retention, the cost is

lowered which attracts the executive attention.

 Fill in time—this refers to the time it takes to fill a vacant position. In this journal (Min,

2017) SHRM proposed that it takes an average of 42 days to fill a position. Which could

rise with the rate of unemployment. This could be the easiest strategy for a fortune 500

company because of the diverse channels of recruitment.

 Hiring contentment this asseses the hiring managers based on Productivity of hired

personnel.if the top performers of an organization take part, efficiency and productivity

can be improved. This mirrors what each employee may contribute to the end point.

The fortune 500 organizations are assisted by interconnecting these metrics to the outcome of the

organization giving a clear indication of their competitive stand at the present and the future.
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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.