What is word error rate in words? Align the machine hypothesis with a human reference. A substitution is a wrong word in the same slot. An insertion is an extra word the human never said. A deletion is a reference word the machine skipped. Word error rate equals substitutions plus insertions plus deletions, divided by the reference word count. If the reference is ten words and the recognizer substitutes one, inserts one, and deletes one, that is three errors over ten words, or a word error rate of 30 percent.
WER is a blunt tool. It treats every word equally, so missing 'not' costs the same as missing 'the,' which is a poor match for legal or medical risk. It also needs a reference, so you cannot compute it on live dictation unless you later type a gold transcript. Vendors quote WER on clean read speech that looks better than your open-plan office. Complement it with the errors you actually fix: names, jargon, and fillers. Custom vocabulary attacks a slice of WER that a bigger generic model may still miss.