What is a business metric?
A business metric is any type of measurement used to gauge some quantifiable component of a company's performance, such as headcount, employee and customer churn rates, time to fill, and so on. Business metrics are part of the broad area of business intelligence, which comprises a wide variety of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. Systematic approaches, such as the balanced scorecard methodology, can be employed to transform an organization's mission statement and business strategy into specific and quantifiable goals, and to monitor the organization's performance in terms of achieving those goals.
Metric of the month: Administrative Employee Headcount per Student
Headcount calculation is one of the most basic organizational metrics that answers a simple question: how many employees are there in the organization as a whole, or in a specific business unit.
For comparability, headcounts can be expressed as a ratio to another metric. And in Higher Education, the other metric used in the ratio is typically the student population. By definition Administrative Employee Headcount per Student is calculated as follows:
Regular Administrative Employee Headcount / Regular Student Headcount
Note: Regular Administrative Employee Headcount refers to full-time employees in the following categories: Administrative and Professions, Clerical and Technical Staff, and Service Staff.
Employee Headcount per Student provides a view of the size of the University’s administrative function in relation to the overall student population.
The HR Reporting project is developing metrics like this and more. Stay tuned as we introduce new concepts and functionality.