Human Resource Management
Human Resource Management
Absence rate is a metric used to measure the rate of absenteeism in the workplace. It is measured as the ration of the total workers absent in relation to the overall fulltime wages and salaries for employment of labor. Essentially, managers in organizations need to establish the severity of absenteeism, and the effects of such on the productivity of the organization additionally this enables the employer to evaluate employees on an individual basis and contributions of the employees to the organization’s operations. Absence rate provides the management with the needed information about the causes of absenteeism and the possible solutions for such issues. This ensures that the organization ensures utilization of labor costs by ensuring the presence of employees in the organizational process thus increasing productivity.
Cost per Hire is defined as costs associated with hire of new staff. It is widely used as a measure for evaluating the costs used in the show for any changes in terms of hiring and retention costs by the organization. In addition, this metric is also used to evaluate the possibility of cost reductions and the recruitment and retention activities in the organization. In essence, the aim of this metric is to ensure the ability of the organization in controlling and improving the recruitment function of human resource. Additionally this is used for efficiency in the recruitment processes and control of the same. These costs are associated with the costs of replacements and the costs associated with time-to-fill the vacant employment position in the organization (Torrington, Hall, & Torrington, 2006).
Human Resource expense factor is defined as the costs accrued by the human resource in relation to the total operational costs of the organization. This is aimed at evaluating the contribution of the costs of the human resource department in an organization as they relate to the organizational operation costs. This is relatively important for an organization in that it enables the evaluation of the irrelevant costs in the human resource department. This is an essential aspect in management of the organizational resources as it provides the management with information necessary for making budgetary predictions and for future planning. Additionally this enables the management of the organization with the relevant information necessary for ensuring cost reductions and making savings in the department.
Time to fill is defined as the period when a position fell vacant, and a job requisition was approved, to the date such a position is assumed by a new employee. Time to fill metric provides the organization with an insight in terms of the average time assumed to hire new employees. Additionally, the time to fill metric enables human resource to evaluate the redistribution of duties, tasks and responsibilities to ensure that productivity is maintained for achievement of the organizational goals and objectives. Additionally this provides the management of the organization with the information for making budgets and in the planning of resources. A higher cost per hire is also attributable to a long time to fill a vacant employee position (Torrington, Hall, & Torrington, 2006).
Turnover rate is defined as the rate at which employees leave an organization and others are hired to fill in the vacant positions. A higher rate of turnover could be detrimental to the organization. This is because it has the possibility to lead to the loss of extremely valuable employees in the organization. Such costs include the replacement or recruitment costs, transitions costs, loss of expertise and the production losses attributable to the vacant position of the organization. The turnover rate also enables the organization to evaluate the employment conditions in an organization or the causes of high turnover rates. In addition, a lower rate also indicates to the management of the organization the presence of an appropriate environment for the employees. Furthermore, this also enables the establishment of strategies, which enable the organization to ensure that it maintains high value employees.
Torrington, D., Hall, L., & Torrington, D. (2006). Human resource management. London: Prentice Hall Europe.