SHRM-CP KEY FORMULAS QUESTIONS & CORRECT PASSED ANSWERS

SHRM-CP KEY FORMULAS
QUESTIONS & CORRECT PASSED
ANSWERS
Cost of hire - Correct Answer ✔✔ total costs /
# of new hires

Cost per hire - Correct Answer ✔✔ (sum of external costs) + (sum of internal costs)/
total # of hires in time period

Employee absence rate - Correct Answer ✔✔ # of days absent in a month /
average # of employees during a month x # workdays in a month

Human capital return on investment - Correct Answer ✔✔ employment related
expenses /
revenue - nonemployment expenses

human capital value added - Correct Answer ✔✔ revenue - nonemployment expenses /
# of full time employees

labor productivity - Correct Answer ✔✔ sales /
# of employees

recruitment cost ratio (RCR) - Correct Answer ✔✔ [(External costs + Internal costs)/
Total first-year compensation of hires in a time period] x 100

retention rate - Correct Answer ✔✔ [# of employees who remain employed for entire
measurement period / # of employees at the start of measurement period] x 100

Revenue per employee - Correct Answer ✔✔ Total revenue/
Total number of employees

turnover rate - Correct Answer ✔✔ [# of separations during measurement period /
average # of employees during measurement period] x 100

vacancy costs - Correct Answer ✔✔ costs of substitute labor (temp workers,
contractors) - wages & benefits not paid because vacant

yield ratios (6) - Correct Answer ✔✔ qualified applicants/
total applicants

yield ratios (6) - Correct Answer ✔✔ female applicants/
total applicants