Question 1

What formula is used to calculate employee turnover rate?

Accepted Answer

Turnover Rate = (Number of Separations ÷ Average Number of Employees) × 100. It measures the percentage of employees who leave an organization during a given period.

Question 2

What does the HR-to-employee ratio measure?

Accepted Answer

It measures the number of HR staff relative to the total employee population, indicating HR department efficiency and capacity. A lower ratio means each HR professional supports more employees.

Question 3

What is the difference between a leading indicator and a lagging indicator in HR analytics?

Accepted Answer

A leading indicator predicts future outcomes (e.g., engagement scores predicting turnover), while a lagging indicator measures past results (e.g., actual turnover rate). Leading indicators enable proactive decision-making.

Question 4

How is cost-per-hire calculated?

Accepted Answer

Cost-Per-Hire = (Total Internal Recruiting Costs + Total External Recruiting Costs) ÷ Total Number of Hires. It quantifies the average investment required to fill a position.

Question 5

What is absenteeism rate and why is it an important HR operations metric?

Accepted Answer

Absenteeism rate = (Days Absent ÷ Total Scheduled Workdays) × 100. It signals workforce productivity issues, health concerns, or engagement problems that can increase operational costs.

HR Operations – PHR Exam Flashcards

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