Predominantly there are four broad functional areas which are measured:
Productivity : The Unit of Service or the UOS is a commonly used metric which is basically calculated by dividing the number of things an employee does in a period of time with the total number of working hours in that period. Unproductive employees increase costs for the organisation and improving efficiency becomes very important.
Cost of Labor: The common metrics used include overtime costs, per unit costs of labor, cost of unproductive labor, payroll costs etc.
Satisfaction levels: Employee and Customer satisfaction are metrics which are determined using research surveys.
Retention: It is important to retain existing employees by providing them opportunities to grow as hiring new employees involve a cost. The annualized turnover rate is a common metric used.
Level of Recruitment: The costs involved and the time taken to recruit new employees are metrics used here.