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Happy New Year! I hope you had a safe and prosperous holiday season. Our next diversity metric is a fairly common one. Turnover rate provides an excellent means to determine how effective you are at retaining your employees. It also allows you to compare retention rates between different employee demographic groups and categories. Turnover rate uses a simple formula that compares the number of terminated employees with the average employee population for a specified time frame (e.g., one year):
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Like the quality hire rate metric, quality hire of diverse candidates can help you evaluate the efficacy of your hiring process by telling you how effective you are at selecting high performers who can be promoted and who stay with the company. In addition, it allows you to compare the quality of hires between different employee demographics and categories. The quality hire of diverse candidates formula also uses performance ratings, promotion percentage and retention rate as primary performance indicators as follows:
Next Post: January 6, 2014 – Top Diversity Measures and Metrics: Turnover Rate Another useful diversity metric is one that helps organizations evaluate the quality of their hiring process. Quality hire rate does this by telling you how effective you are at hiring high performers who can be promoted and who stay with the company. The quality hire formula uses performance ratings, promotion percentage and retention rate as primary performance indicators as follows:
In my last post, I introduced hit rate, which tells you how effective you are at marketing your organization to potential candidates by comparing the number of job offers accepted by candidates to the number of offers extended by your organization. Diversity hit rate uses a similar formula that allows you to compare hit rates between different employee demographics and categories:
Hit rate tells you how effective you are at marketing your organization to potential candidates. It does so by comparing the number of job offers accepted by candidates to the number of offers extended by your organization. Here is a formula you can use to determine hit rate:
Staff diversity percentage is another very simple, yet useful metric that tells you how effective you are at increasing diversity at various organizational levels, divisions and departments. Here is a formula you can use to determine staff diversity percentage within a business unit, at a particular job grade, or for the entire organization:
Diversity hire percentage is a very simple, yet useful metric that tells you how effective you are at hiring diverse candidates from your selection pools. As a general rule of thumb, if your diversity hire percentage is equal to or higher than your candidate pool diversity percentage, you are doing a good job. If it is lower, then you are either not recruiting high quality, diverse candidates or there is bias in your selection process. Here is a formula you can use to determine diversity hire percentage:
This is one of my favorite metrics because it tells you how effective you are at increasing the diversity of your candidate pools (i.e., recruiting women, the physically challenged, Latinos, Asian Americans, Native Americans and African Americans). If you want to increase the quality and diversity of your staff, the process begins by increasing the quality and diversity of the candidate pools you use for the selection process. Here is a formula you can use to determine candidate pool diversity percentage:
In my last post, I introduced cost-per-hire, which tells you how much it costs for each person you bring into your organization. Cost-per-diverse hire tells you how much it costs for each diverse employee hired (e.g., women, the physically challenged, African Americans, Latinos, Asian Americans and Native Americans). It allows you to compare hiring costs between different employee demographics and categories. Most significantly, it tells you how effective you are at hiring diverse candidates per dollar unit of cost (i.e., whether you are using recruitment sources/techniques that are financially successful). Here is a simple formula you can use to determine cost-per-diverse hire:
One of the most significant benefits of any diversity program is improved organizational bottom-line in terms of reduced costs and/or increased revenues. One way to significantly impact your bottom-line is to reduce hiring costs, which you can assess by determining cost-per-hire. By definition, cost-per-hire is the average of total hiring costs divided by the number of hires in a specific time period. By determining your cost-per-hire on a regular basis (e.g., annually or semi-annually), you can evaluate the effectiveness of your recruitment and selection methods, and make adjustments that yield better financial results. Here is a simple formula you can use to determine cost-per-hire (CPH):
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AuthorDr. Tyrone A. Holmes is an author, speaker, coach and consultant. He helps his clients develop the skills needed to communicate, resolve conflict, solve problems and improve performance in diverse organizational settings. Archives
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