When to use: Whenever a learning intervention is requested — and especially to prove, before spending, that training is the right solution to the performance gap.

Total Rewards Model

A framework covering every element of value an employer offers, so reward decisions are made across the whole package rather than base pay alone.

When to use: In annual reward strategy reviews, when retention or offer-acceptance drops, and whenever budget pressure forces trade-offs between pay and benefits.

Formulas library

Every formula with variables, interpretation thresholds and a worked example.

Employee Turnover Rate

Turnover % = (Separations in period / Average headcount) x 100

S: Separations during the period (employees)
AH: Average headcount for the period (employees)

< 10% annual — Low
10-20% annual — Typical
> 20% annual — High

Worked example

A company starts the year with 480 employees, ends with 520, and 78 people leave.

Average headcount = (480 + 520) / 2 = 500; Turnover = 78 / 500 x 100 = 15.6

Mid-range overall — but if 50 of the 78 came from one function, that team is the real problem.

Try: A company starts the year with 480 employees, ends with 520, and 78 people leave.

Cost per Hire

CPH = (Internal recruiting costs + External recruiting costs) / Number of hires

IC: Internal costs (recruiter salaries, referral bonuses, ATS) (USD)
EC: External costs (agencies, job boards, assessments, travel) (USD)
H: Hires in the period (hires)

Below industry benchmark — Efficient
Around benchmark — Normal
Well above benchmark — Expensive

Worked example

A team hires 25 people in a quarter with $60,000 of internal recruiting cost and $115,000 of agency and job-board spend.

CPH = (60,000 + 115,000) / 25 = 175,000 / 25 = 7,000

Two-thirds of the cost is external — moving 20% of hires to referrals would save roughly $23,000 a quarter.

Try: A team hires 25 people in a quarter with $60,000 of internal recruiting cost and $115,000 of agency and job-board spend.

Absenteeism Rate

Absenteeism % = (Unscheduled absence days / (Headcount x Available workdays)) x 100

A: Unscheduled absence days in the period (days)
N: Average headcount (employees)
W: Scheduled workdays per employee in the period (days)

< 1.5% — Low
1.5-3.0% — Normal
> 3.0% — High

Worked example

200 employees, 21 workdays in the month, 84 unscheduled absence days recorded.

Absenteeism = 84 / (200 x 21) x 100 = 84 / 4,200 x 100 = 2.0

Within the normal band; segment by shift before launching any intervention.

Try: 200 employees, 21 workdays in the month, 84 unscheduled absence days recorded.

Revenue per Employee

RPE = Total revenue / Average headcount

R: Total revenue for the period (USD)
AH: Average headcount (employees)

Rising year on year — Improving productivity
Flat — Scaling linearly
Falling — Productivity dilution

Worked example

A services firm reports $84,000,000 revenue with an average headcount of 420.

RPE = 84,000,000 / 420 = 200,000

Track it quarterly next to cost per hire — hiring 40 more people needs $8M of new revenue to hold the ratio.

Try: A services firm reports $84,000,000 revenue with an average headcount of 420.

HR-to-Employee Ratio

Ratio = (HR full-time equivalents / Total employees) x 100

HRFTE: HR staff (full-time equivalents) (FTE)
E: Total employees (employees)

< 1.0 per 100 — Lean HR function
1.0-1.5 per 100 — Typical
> 2.0 per 100 — HR-heavy

Worked example

An organisation of 800 employees has 9 HR FTEs.

Ratio = 9 / 800 x 100 = 1.125

Right at benchmark — further HR hiring should be justified by service levels, not headcount growth alone.

Try: An organisation of 800 employees has 9 HR FTEs.

Time to Fill (average)

Average Time to Fill = Sum of days from requisition approval to offer acceptance / Number of positions filled

Dn: Days from requisition opening to offer acceptance for each role (days)
P: Positions filled in the period (positions)

< 30 days — Fast
30-45 days — Typical
> 60 days — Slow

Worked example

Five roles filled in 28, 34, 41, 52 and 60 days.

Sum = 215 days; Average = 215 / 5 = 43

The 60-day outlier is a senior role — report median alongside mean so one hard requisition does not distort the story.

Try: Five roles filled in 28, 34, 41, 52 and 60 days.