Monitoring non-financial ratios
Non-financial ratios are ratios in which neither figure is expressed in dollar terms. There are many different types of non-financial ratios - any data in your business that involves a number can likely be expressed as a ratio and analysed.
Staff turnover ratio
One example of a non-financial ratio is the staff turnover ratio. This can help you measure staff satisfaction levels.
A high staff turnover ratio can indicate your staff are not happy at work. Attempting to address the issues they have may help you reduce the amount of time and effort you need to spend on recruiting new staff.
Use the following interactive calculator to help you work out your staff turnover ratio. Once you have read and understood the example, you can type the numbers that are relevant to your business into the calculator to see your staff turnover ratio.
Other non-financial ratios
Non-financial ratios include the:
- product returns ratio - the rate at which a particular product is returned as faulty or unwanted
- customer reorder ratio - the rate at which customers provide return business, or reorder particular products
- absenteeism ratio - the rate at which particular staff members are absent from work, or the overall rate of absenteeism in your business
- days lost to injury ratio - the amount of time off employees need to take due to injury suffered in the workplace
- business plan KPIs ratio - the rate at which a key performance indicator (KPI) is met in a certain department, for a certain product or generally across the business.