HR KPIs

HR KPIs are useful, relevant, and measurable metrics for HR teams to assess the performance of human capital and resources. It’s an indicator of the impact of workforce management, employee engagement, hiring, retention, and more. Measuring HR metrics will guide HR leaders and company management to improve HR strategies and align with other company goals. 

A good HR KPI must be actionable, relevant, and able to bring an improvement. Some examples include:

Important HR KPIs to measure

1. Cost per hire

Cost per hire is the total cost that’s required to hire and bring a new employee into the company. This includes advertising costs, interview costs, travel expenses, administrative costs, recruitment agency fees, background check expenses, referral bonus, etc. It also includes the compensation and benefits offered to the hired employee. Monitoring cost per hire is an important task for HR teams. It helps them manage onboarding budgets and measure hiring effectiveness and ROI.

2. Employee turnover rate

Employee turnover rate is the ratio of how many employees leave the organization during a specified period to the total number of employees. It can be voluntary, where employees leave on their own, or involuntary turnover, where the company terminates their employment. Employee turnover rate is an indicator of organizational health and workforce stability. 

3. Talent retention

Talent retention is the opposite of employee turnover rate, which means how many employees the company could retain during a given period. Let’s say that an organization has 100 employees and by the end of the year, they are left with 75. Then, the talent retention rate would be (75/100)*100 = 75%, meaning that the company managed to retain 75% of their employees.

4. Employee experience index

Employee experience is a combination of different factors, from employee satisfaction with health and wellbeing to growth opportunities, recognition and rewards, and how conducive is the work environment. You could find employee experience using surveys, feedback systems, and analytics tools. This critical insight is needed to find areas of improvement in people management to ensure maximum retention and growth. 

5. Employee advocacy rate

Employee advocacy rate is the HR metric that tells how likely your employees refer and promote your company. It’s measured using surveys, referral program participation rate, employee testimonials, and one-on-one discussions with employees. 

Having a high employee advocacy rate can help you build a great employer brand, attract top talent, and grow as a credible, trustworthy employer through word-of-mouth. 

6. Remote work productivity

The increase in remote work culture suggests that HR teams should measure remote work productivity. Some common factors that help you measure remote work productivity include task completion rate, promptness in communication, attendance, goal achievement, and collaboration efficiency. You could track all this using productivity tools, trackers and management software, surveys with team heads, and other employee metrics achievement.

7. Absenteeism

Absenteeism is measured in time or days that denotes the period when employees couldn’t be available for work. Every company has accepted levels for working days and absenteeism. Hence, tracking this metric is essential for HR teams. A high absenteeism rate could impact productivity, employee morale, and the quality of work.

8. Training and development

Training and development is an integral part of HR management. The metric training and development shows the effectiveness of these programs on overall employee performance and company growth. Under this, you could monitor employee participation, completion rate, training ROI, time to competency, training cost per employee, and many similar HR KPIs.

9. Diversity and inclusion

D&I metrics are one way to find how effective a company’s diversity and inclusion initiatives are. Human resources teams must measure the following HR KPIs like workforce demographics, diversity of hiring, pay equity, inclusion index, reports against biased treatment, women employees ratio, leadership demographics, and more. 

When a company tracks diversity and inclusion, they have concrete proof of their commitment towards an inclusive workforce.

10. Acceptance rate

Acceptance rate is a hiring metric denoting the percentage of candidates who accepted the offer to the total number of applicants. It shows HR teams and the management how attractive the job offer sounds to the candidate pool, so they could make necessary changes in the future. 

Track HR KPIs using HR dashboard templates

We have listed some recent HR KPIs used by growing companies and enterprises. But there are a ton of other metrics too. HR and people leads can’t spend their time doing calculations and maintaining spreadsheets. That’s where dashboards help.

• HR dashboards carry all basic and advanced KPIs, up-to-date

• Interactive and shows a detailed, drilled-down view of data.

• Could present tracking reports in visual formats and share in a single click

• Ability to scale up as your team size grows.

Having all HR metrics in one location is beneficial for HR managers, coordinators, human resources officers, and CEOs and business heads.