Is your company tracking the right metrics that matter most for workforce planning? Workforce planning metrics help you see how your team is doing and what you need to improve. They can guide your strategic decisions, help you maintain a competitive edge, and prepare your business for the future.
In this guide, we’ll cover the most important workforce planning metrics to track in 2024. From measuring burnout rate to salary scale distribution, we’ll explain why these metrics matter and how they can help your business succeed.
Here are the 15 metrics we’ll cover in this post. More details about each metric can be found below the table.
| Metric | Description | Formula |
| Headcount | Total number of employees in the business at a given time | Total Number of Employees |
| Full-Time Employees | Number of employees working standard full-time hours (typically 35-40 hours/week) | Number of Employees Working Full-time Hours |
| Internal Mobility Rate | Percentage of employees moving to different roles within the company over a specific period | (Number of Internal Moves / Total Number of Employees) x 100 |
| Burnout Rate | Percentage of employees experiencing physical | emotional |
| Employee Utilization | Percentage of an employee’s available working time spent on productive tasks | (Productive Hours Worked / Total Available Working Hours) x 100 |
| Employee Productivity | Measure of work output compared to time and resources used | Total Output / Total Input |
| Employee Capacity | Maximum amount of work an employee can handle within a given period | (Available Work Hours / Maximum Potential Work Hours) x 100 |
| Workspace Utilization | Percentage of available workspace actively being used by employees | (Occupied Workspace / Total Available Workspace) x 100 |
| Retention Rate | Percentage of employees who remain with an organization over a specified period | (Number of Employees Remaining / Total Number of Employees at Start) x 100 |
| Attrition | Measure of how many employees leave the company over a certain period | (Number of Employees Who Left / Average Number of Employees) x 100 |
| Annual Failed Hires | Number of new hires who leave the company within their first year of employment | (Number of New Hires Who Left Within a Year / Total Number of New Hires) x 100 |
| Employee Net Promoter Score (eNPS) | Measure of employee satisfaction and loyalty based on likelihood to recommend the company | %Promoters − %Detractors |
| Time-to-Hire | Time taken from job posting to offer acceptance | Date of Offer Acceptance − Date of Job Posting |
| Salary Scale Distribution | Spread of salaries within an organization across different roles | levels |
| Employee Absentee Rate | Percentage of workdays missed due to unplanned absences within a specific period | (Total Missed Workdays / Total Available Workdays) x 100 |
1. Headcount
Headcount is a basic but fundamental metric in workforce planning. It shows you the total number of employees in your business at any given time. Tracking headcount is crucial for making strategic decisions like budgeting, resource management, and capacity planning.
For example, an increasing headcount might mean the company is growing and needs more infrastructure, while a decreasing headcount could indicate cost-cutting or downsizing. Analyzing headcount trends over time also helps business leaders spot patterns in employee retention, turnover rates, and hiring effectiveness.
To calculate headcount, simply count the total number of employees on the payroll at a specific point in time. This includes full-time, part-time, and temporary workers.
You can use this formula: Headcount=Total Number of Employees
2. Full-Time Employees
Full-time employees are those who work a standard number of hours as defined by the company, typically around 35-40 hours per week. This key metric gives you a good look at your core team and helps you see how ready your business is for steady work.
Keeping track of full-time employees is important for planning resources, managing benefits, and following labor laws. It also helps you plan for big projects and keep productivity steady.
To calculate the number of full-time employees, count all individuals who meet the organization’s criteria for full-time status.
You can use this formula: Full-time Employees=Number of Employees Working Full-time Hours
3. Internal Mobility Rate
Internal mobility rate refers to the percentage of employees who move to different roles within the same company over a specific period. This metric provides valuable insights into your organization’s ability to develop and promote talent from within, showing the effectiveness of employee development programs and employee satisfaction.
A high internal mobility rate suggests that employees are finding growth and training opportunities within the company, which can lead to higher retention rates and lower recruitment costs.
Tracking the internal mobility rate helps you understand how well you’re using the existing talent pool and whether employees are progressing in their careers. It also shows if you need to offer more training to help people move into new roles.
To calculate the internal mobility rate, use the following formula:
Internal Mobility Rate = (Number of Eternal Moves / Total Number of Employees) x 100
4. Burnout Rate
Burnout rate refers to the percentage of employees experiencing physical, emotional, and mental exhaustion due to prolonged stress and overwork. It shows how common burnout is in your company and gives you an idea of how your employees are doing.
If the burnout rate is high, it means your team might be struggling with their workload, work-life balance, or not getting enough support. This can lead to lower productivity, disgruntled employees, more sick days, and higher turnover.
Tracking the burnout rate is important to see where you need to step in to help improve employee health and job satisfaction. It also helps you figure out how to reduce stress, balance workloads, and offer the right support.
To calculate burnout rate, you can use the following formula:
Burnout Rate = (Number of Employees Experiencing Burnout / Total Number of Employees) x 100
5. Employee Utilization
Employee utilization refers to the percentage of an employee’s available working time period that is spent on productive tasks. This metric provides actionable insights into how effectively your workforce is being used and helps spot any inefficiencies or overwork.
If the utilization rate is high, employees are busy with productive work. If it’s lower, it might mean resources are not being used effectively. Keeping track of this productivity metric is important to ensure that resources are used efficiently and employees aren’t too stressed.
To calculate employee utilization, you can follow this formula:
Employee Utilization = (Productive Hours Worked / Total Available Working Hours) x 100
6. Employee Productivity
Employee productivity measures how much work an employee gets done compared to the time and resources they use. It shows how effective your team is and how they’re contributing to the company’s organizational goals.
High productivity means employees are making good use of their time and resources to get a lot done and reach business outcomes, while low productivity can show where improvements are needed.
Tracking employee productivity is crucial for identifying strengths and weaknesses within the workforce. It’s also important for determining where to put resources, what training expenses might be needed to fill skill gaps, and how to improve operational efficiency.
To calculate employee productivity, you can use this formula:
Employee Productivity = Total Output / Total Input
7. Employee Capacity
Employee capacity refers to the maximum amount of work an employee can handle within a given period, considering their skill set, experience, and available work hours. This metric shows how well workloads are distributed and helps make sure employees aren’t overwhelmed or underused.
High employee capacity means employees are busy and engaged, while low capacity suggests they can handle more tasks. This metric is key for future workforce planning and talent management. It helps managers balance workloads, see where training is needed, and get the most out of their teams. Knowing employee capacity also helps plan for busy times and ensures projects stay on track.
To calculate employee capacity, you can use this formula:
Employee Capacity = (Available Work Hours / Maximum Potential Work Hours) x 100
8. Workspace Utilization
Workspace utilization refers to the percentage of available workspace that employees are actively using. This metric shows how well you use your physical space and helps you see if any areas are too empty or crowded.
It’s also important for making sure your office is set up efficiently and there are no skill gaps. It can help you save money on unused space, improve employee satisfaction by creating better working conditions, and make data-driven decisions about whether you need more or less office space.
To calculate workspace utilization, you can follow this formula:
Workspace Utilization = (Occupied Workspace / Total Available Workspace) x 100
9. Retention Rate
Retention rate is the percentage of employees who remain with an organization over a specified period. This metric shows how loyal your employees are and how well your workplace and policies are working.
Tracking your employee retention rate helps you understand how well you’re retaining internal talent. It shows where you’re doing well and where you might need to improve to keep your employees happy. A good retention rate saves money on hiring and keeps things running smoothly.
To calculate the retention rate, you can follow this formula:
Retention Rate = (Number of Employees Remaining / Total Number of Employees at Start) x 100
10. Attrition
Attrition measures how many employees leave your company over a certain period, whether they quit or are let go. This provides insights into workforce stability and can highlight potential issues within the organization. High attrition rates might mean employees are unhappy, management isn’t great, or pay and benefits aren’t enough.
Keeping track of attrition is important to understand employee turnover and figure out how to keep your talent. It helps you see if your HR policies and workforce planning efforts are working well. By fixing the issues that cause high attrition, you can keep employees longer, save on hiring and training costs, and keep things running smoothly.
To calculate the attrition rate, you can use this formula:
Attrition Rate = (Number of Employees Who Left / Average Number of Employees) x 100
11. Annual Failed Hires
Annual failed hires refer to the number of new hires who leave the company within their first year of employment. This metric shows how efficient your hiring and onboarding systems are. If you have a high rate of bad hires, it might mean there are problems like poor job fit, bad onboarding, or mismatched expectations.
Tracking annual failed hires helps you spot issues in your hiring process, make job title descriptions clearer, and improve onboarding to make sure new hires are ready and supported. Fixing these issues can lower turnover, cut recruitment costs, and create a more stable team with a more engaged workforce.
To calculate the annual failed hires rate, use this formula:
Annual Failed Hires Rate = (Number of New Hires Who Left Within a Year / Total Number of New Hires) x 100
12. Employee Net Promoter Score (eNPS)
Employee Net Promoter Score (eNPS) is a metric used to measure employee satisfaction and loyalty. It is derived from an employee survey question asking them how likely they are to recommend the company to others on a scale from 0 to 10.
Respondents are categorized into three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6). The eNPS is then calculated by subtracting the percentage of detractors from the percentage of promoters.
Tracking eNPS helps you understand how your employees feel about working at your company and overall employee sentiment. A high eNPS means employees are happy and would recommend your company, which can help with hiring and keeping staff.
To calculate eNPS, use the following formula:
eNPS = %Promoters − %Detractors
13. Time-to-Hire
Time-to-hire refers to the amount of time taken from the moment a job opening is posted until a candidate accepts the job offer. This provides insights into the efficiency of the recruitment process and helps identify potential bottlenecks.
A shorter time-to-hire means you’re hiring quickly and efficiently, while a longer one could mean there are issues like slow approvals, not enough qualified candidates, or inefficient hiring practices.
Tracking this metric is crucial for improving the complex recruitment process and ensuring that positions are filled promptly with minimal impact on productivity.
To calculate time-to-hire, use this formula:
Time-to-Hire = Date of Offer Acceptance − Date of Job Posting
14. Salary Scale Distribution
Salary scale distribution refers to the spread of salaries within an organization across different roles, levels, and departments. It shows you how pay is distributed and helps spot any unfair differences.
A balanced salary distribution means everyone is paid fairly, which keeps employees happy and reduces turnover. Key differences in pay can cause dissatisfaction and make people leave.
Keeping track of salary scale distribution is important to ensure your pay practices are fair and competitive. It helps you follow pay equity laws, attract and keep the best talent, and keep employees motivated. By looking at this metric, you can decide if you need to adjust salaries or budget for pay changes.
To calculate salary scale distribution, you can use this formula:
Average Salary = Sum of All Salaries / Number of Employees
15. Employee Absentee Rate
Employee absentee rate measures the percentage of workdays that employees miss due to unplanned absences within a specific period. It shows how often employees are away from work unexpectedly and gives you a sense of their overall well-being.
High absentee rates might mean there are issues like job dissatisfaction, health problems, or poor work-life balance, all of which can hurt productivity and employee morale.
Monitoring this metric is important to spot trends and fix problems that cause employees to miss work. It helps you create business strategies to improve individual employee health, employee engagement, and satisfaction, which can reduce unplanned absences. It’s also useful for strategic planning of your current workforce and making sure you have enough staff to keep things running smoothly.
To calculate the employee absentee rate, use this formula:
Employee Absentee Rate = (Total Missed Workdays / Total Available Workdays) x 100
Improve Workforce Planning with Teramind
Learn how Teramind can help improve workforce planning.
- Monitoring Employee Productivity: Teramind tracks how employees spend their time on tasks and applications, providing insights to optimize workload distribution and resource allocation.
- Identifying Efficiency Gaps: By analyzing employee computer activities, Teramind identifies inefficiencies, skill gaps, or training needs, improving workforce productivity.
- Forecasting Workload: Teramind uses historical data to predict workload trends, helping organizations plan staffing levels and resource allocation more effectively.
- Ensuring Compliance and Security: Teramind monitors employee behavior to ensure compliance with policies and regulations, supporting workforce planning aligned with legal requirements and internal guidelines.
Conclusion
Workforce planning is more than just numbers—it’s about using data to build a flexible and strong team. That’s why tracking the right workforce metrics is key to making sure your team and business goals are aligned. By focusing on these metrics, you can boost productivity, optimize your workforce, and be better prepared for the future.
So, how are you planning to track and use your workforce planning metrics this year?
