Collection of useful human resource tools and calculators

Here is a collection of useful human resource tools and calculators:

Cost Per Hire Calculator (CPH) - A simple calculator to help you determine the costs per hire.

·         Cost of Turnover Calculator - An in-depth calculator for calculating the hard costs of turnover.

·         Salary Breakdown Calculator - Do you know how much you pay your employees every second?

·         Absence Rate Calculator - This calculator determines the lost time rate for one or more employees.

·         ROI (Return on Investment) Calculators - 3 simple calculators to calculate the compounded return on your investment.

·         Revenue and Profit Per Employee Calculator - A simple calculator to determine revenue and profitability per employee.

1.   Absence Rate Calculator

This calculator determines the lost time rate for one or more employees. This calculator assumes that a year has an average of 260 work days and 8 work hours per day.

An absence rate higher than 5% is considered high. 

Note: This calculator is provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. 

Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page. 

Employee salary: $ per    hour year  

    hours days  of absence(s)

Out of  work    hours days

The absence rate is 7.69%,  if absence is in hours then rate is .96% This represents $2,307.69/ 288.46 in lost wages assuming a 260 work day year. 2.   Cost Per Hire Calculator (CPH)

Use this calculator to determine your aproximate cost of hiring an employee. The Cost Per Hire formula is very simple and is based on the Cost Per Hire model developed by the Staffing Management Association (SMA) and the Saratoga Institute a few years ago. 

Formula:
CPH = AC + AF + ERC + TE + RE + (TRAC * 0.1) 
Where:

CPH	=	Cost Per Hire
AC	=	Agency Fees
AF	=	Advertising Costs
ERC	=	Employee Referral Costs
TE	=	Travel Expenses
RE	=	Relocation Expenses
TRAC	=	Total Recruiter and Administration Costs *

* Assuming that the internal recruiter and administrative staff perform other duties in the firm, the studies by conducted by SMA and Saratoga Institute concluded that a 10% figure for proration was a historical estimate of the costs involved for a hire. 

Note: This calculator is provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. The Human Equation, Inc. is NOT affiliated and does NOT endorse the Staffing Management Association (SMA) nor the Saratoga Institute. 
Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page. 

Advertising Costs:	$
Agency Costs:	$
Employee Referral Costs:	$
Travel/Lodging/Food Costs:	$
Relocation Costs:	$
Total Internal Recruiter and Administration Costs:	$ (Salaries, benefits, etc)

3.   ROI (Return on Investment) Calculators

Use these simple calculators to determine the compounded return on your investment. 

The concept of compounded return on investment is simple but it can be confusing if you are not paying attention. Credit card and loan companies are sometimes able to get away with enormous hidden fees, because many customers don't understand the concept of compounded interest. 

Example: If you earn 10% per year for 10 years, how much will your investment appreciate? 100%?
No. Due to the magical effect of compounding, the answer is 159.37%. 

Note: These calculators are provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. 

Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page. 

Interest = ((Future Value / Present Value)^(1 / Holding Period)) -1
I invested $ I held for  years I ended up with $	Your return is 10% per year

OR 

Future Value = Present Value * (1 + Interest)^(Holding Period)
I want to invest $ I want to hold it for  years Earning % per year	Your future value is $2,593.74
OR  Present Value = Future Value / (1 + Interest)^(Holding Period)
I ended up with $ After holding for  years Earning % per year	You started with $1,000.00

Human Capital ROI
This measures the return on capital invested in pay and benefits. The formula is: 
Revenue - Nonhuman Expenses/Pay and Benefits 
Pay includes all money spent on regular and contingent labor.

4.   Cost of Turnover Calculator

Employee turnover significantly affects the financial performance of an organization. For example, according to the American Management Association, managers in the trucking industry estimate the per-driver replacement expense between $3,000 and $5,000. Correspondingly, a major insurance company recently estimated that its average cost per hire was $35,000. 

So how much does turnover affect your company’s bottom line? The Human Equation has devised this comprehensive cost-of-turnover formula to answer this question. 

This formula is intended to calculate the “hard” costs of turnover. This includes the time involved in recruitment, selection, and training of new personnel as well as the costs associated with advertising expenses and manpower. It does not take into account such indirect costs as employee morale, the time for new employees to equal their predecessor’s level of competency, or the lost productivity associated with employees assisting in the transition period. While these are all valid issues when considering turnover, they are difficult to equate with a clear and uniform monetary value. 

The financial and non-financial outcomes of reducing employee turnover are significant. By reviewing various aspects of your organization and taking appropriate action, you have the ability to reduce your organization’s employee turnover. While this process requires dedication, it will save time, effort, and money in the long run. 

Note: This calculator is provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. 

Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page. 

Separation Processing
	Exit Interview
		·         Hours  X Wage of Inteviewer $	=	$
		·         Hours  X Wage of Exiting Employees $	=	$
	Severance Package  (If the employee is terminated)
		·         $ (varies by company)	=	$
	Administrative functions related to the Exiting Employee
		·         Hours  X Wage of Administrative Support $	=	$
	Unemployment Compensation  (if applicable)
		·         $ (Varies by State)	=	$
	Total Cost of Separation Processing		=	$
Vacancy
	Orientation of Temporary Help
		·         Hours  X Wage of Trainer $	=	$
		·         Hours  X Wage of Temp $	=	$
	Coworker burdens  (overtime, added shifts, etc)
		·         Hours  X Wage of Coworker $	=	$
	Total Cost of Covering Vacancy Gap		=	$
Replacement Hiring
	Development of Advertisement
		·         Hours  X Wage of Developer $	=	$
	Cost of the Advertisement
		·         # of Ads for this position  X Cost of 1 Ad $	=	$
	Headhunter
		·         15% X New Hire’s Annual Salary $ (15% is an avg. percentage charged by headhunters)	=	$
	Screening Applicants
		·         Hours  X Wage of Screener $	=	$
	Interviewing Applicants
		·         Hours  X Wage of Interviewer $	=	$
	Hiring Decision Meeting
		·         Hours  X Avg. Wage of Participants $ X # of Participants	=	$
	Background Check
		·         Hours  X Wage of Reference Checker $	=	$
		·         # of Applicants for the position  X Cost of Background Check $ (The average cost of a background check into an applicant's criminal, education, employment and driving history was $45 in 2002.)	=	$
	Testing  (Aptitude, Drug, Personality)
		·         Hours  X Wage of Tester $	=	$
		·         # of Applicants for the position  X Cost of a Test $	=	$
	Total Cost of Replacement Hiring		=	$
Training New Hire
	Administrative functions related to the New Employee
		·         Hours  X Wage of Administrative Support $	=	$
	Orientation
		·         Hours  X Wage of Trainer $	=	$
		·         Hours  X Wage of New Employee $	=	$
	On-the-Job Training
		·         Hours  X Wage of New Employee $	=	$
		·         Hours  X Wage of Trainer $	=	$
		·         Hours  X Wage of Employees covering for New Employee $ X # of Employees covering	=	$
	Information Literature  (manuals, brochures, policies, etc.)
		·         # of Manuals  X Cost of 1 Manual $	=	$
	Total Cost of Training New Hire		=	$
Total Cost of Turning Over One Employee
	·         Total Costs of Separation Processing + Vacancy Gap + Replacement Hiring + Training New Hire		=	$
Total Cost of Turnover to Your Business
	·         # of Exiting Employees per year  X Total Cost of Turning Over One Employee		=	$

---

 

Summary of Results

Summary of Results

• Total Cost of Separation Processing $45,500.00
• Total Cost of Covering Vacancy Gap $26,000.00
• Total Cost of Replacement Hiring $5,161,500.00
• Total Cost of Training New Hire $93,500.00
• TOTAL COST OF TURNOVER TO YOUR BUSINESS $79,897,500.00

 

5.   Salary Breakdown Calculator

This calculator takes an annual salary and breaks it down into small units of time. The average number of work days per year is 260 days, but you can adjust this number based on your company's number of paid/unpaid time-off days. You might want to refer to our Public Holiday Dates page if you haven't determined this yet. 

Note: This calculator is provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. 

Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page. 

Annual Salary: $

Number of Work Months in a Year: $

Number of Work Weeks in a Year: $ (52 weeks per year is the average)

Number of Work Days in a Year: $ (260 days per year is the average)

Number of Work Hours in a Day: $ (8 hours per day is the average for full-time employees)

Assuming a salary of $30,000.00 per year. An employee makes:

·         $2,500.00 per month

·         $576.92 per week

·         $115.38 per day

·         $14.42 per hour

·         $0.24 per minute

·         $0.004006410256410256 per second

·         $0.000004006410256410256 per millisecond

6.   Revenue and Profit Per Employee Calculator

Use this simple calculator to determine your revenue and profit per employee. This calculator averages out the number of full-time and part-time employees based on a 40 hour week. Example: If you have 2 part-time employees who each work an average of 20 hours per week, then both part-time employees are equivalent to a single full-time employee. 

Use positive figures for all expenses. 

Note: This calculator is provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. 

Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page. 
TOTAL REVENUES  $

o    Net Sales:  $
(income from delivering products or services minus sales discounts, returns, and allowances)

o    Other Revenues:  $
(rent, patents, interests)

·         TOTAL EXPENSES  $

o    Cost of goods sold (COGS):  $
(direct costs of production of goods, labor, raw materials, etc)

o    General and administrative (G & A):  $
(officer salaries, legal and professional fees, utilities, insurance, depreciation of office building and equipment, office rents, office supplies)

o    Selling General and Administrative (SGA) expenses:  $
(sales and employee salaries, advertising, shipping, travel expenses, commisions, etc)

o    Research and development (R & D) expenses:  $

o    Depreciation and amortization charges:  $

o    Interest Expense:  $
(costs of borrowing)

o    Provision for income taxes:  $

o    Other expenses or losses:  $
(charges not related to primary business operations)

·         NUMBER OF EMPLOYEES:   (average based on 40 hours per week)

o    Full-time employees:   (including directors and officers)

o    Part-time employees:  

o    Average hours per week for part-time employees:  

Results

Revenue Per Employee: $84,175.08
(Total Revenues / Number of Employees)

Gross Profit Per Employee: $42,087.54
((Net sales - COGS) / Number of Employees)

Operating Income Per Employee: $23,569.02
aka EBIT: ((Total Revenues - (Total Expenses, excluding interest and taxes)) / Number of Employees)

Profit Per Employee: $12,626.26
((Total Revenues - Total Expenses) / Number of Employees)