10 HR Metrics and KPIs

In the realm of Human Resources (HR), measuring and tracking the right Key Performance Indicators (KPIs) is vital to drive organisational effectiveness and ensure strategic alignment. To empower HR professionals and leaders in their quest for success, we delve into the realm of HR metrics and present our curated list of the top 10 KPIs for HR.

From talent acquisition and employee engagement to workforce productivity and diversity, this comprehensive collection of KPIs and success metrics offers actionable insights and a roadmap for optimizing HR practices.

Benefits of using Human Resources metrics and KPIs

Utilizsng HR KPIs and success metrics offers numerous advantages that strengthen human resources management and drive organisational achievements.

• Informed Decision-Making: HR KPIs provide valuable insights for data-driven decision-making.
• Alignment with Organizational Goals: HR KPIs ensure HR initiatives are aligned with broader objectives.
• Proactive Performance Management: HR KPIs enable proactive identification and resolution of issues.
• Continuous Improvement: HR KPIs serve as benchmarks for ongoing enhancement.
• Data-Driven Accountability: HR KPIs promote transparency and accountability.

Tracking HR KPIs provides organisations with a comprehensive understanding of their workforce's overall health and effectiveness. By measuring metrics like employee engagement, turnover rates, and performance indicators, HR professionals gain valuable insights to identify areas of improvement. This data-driven approach enables them to implement targeted interventions, establish proactive initiatives, and address challenges before they escalate.

The top 10 KPIs and success metrics for HR

#1 Employee Turnover Rate

Measures the percentage of employees who leave an organization within a specified time period. It helps organizations understand the rate at which employees are leaving and the potential impact on productivity, morale, and overall performance.

How to get this KPI:

• BambooHR
• ADP Workforce Now
• Sapling
• Workday HCM
• People Analytics by Google Cloud

#2 Employee Satisfaction Score

Measures the level of satisfaction and contentment among employees within an organization. It helps assess employee morale, engagement, and overall satisfaction, which can impact productivity and retention.

How to get this KPI:

• Culture Amp
• Glint
• Qualtrics EmployeeXM
• Peakon
• TINYpulse

#3 Time to Fill

Measures the average time taken to fill open positions within the organization. It helps assess the efficiency and effectiveness of the recruitment process and identify areas for improvement.

How to get this KPI:

• Workable
• Greenhouse
• JazzHR
• Lever
• SmartRecruiters

#4 Cost per Hire

Calculates the average cost incurred to hire a new employee, including recruitment expenses such as advertising, agency fees, and onboarding costs. It helps assess the financial impact of the recruitment process.

How to get this KPI:

• Zoho Recruit
• Jobvite
• iCIMS Talent Cloud
• Paycor
• Breezy HR

#5 Training Effectiveness

Measures the effectiveness of training and development programs in terms of knowledge transfer, skill enhancement, and performance improvement. It helps assess the impact of training investments on employee performance and organizational goals.

How to get this KPI:

• Talentsoft
• Docebo
• Cornerstone OnDemand
• SAP SuccessFactors
• TalentLMS

#6 Absenteeism Rate

Measures the percentage of scheduled work time that employees are absent. It helps track employee attendance patterns and identify potential issues affecting productivity and employee well-being.

How to get this KPI:

• absence.io
• Calamari
• CakeHR
• ADP Workforce Now
• Paychex Flex

#7 Overtime Hours

Measures the number of hours employees work beyond their regular working hours. It helps monitor workload distribution, assess resource allocation, and identify potential burnout risks.

How to get this KPI:

• TSheets by QuickBooks
• Deputy
• Kronos Workforce Ready
• Paycom
• ADP Workforce Now

#8 Diversity and Inclusion Index

Measures the level of diversity and inclusivity within an organization, assessing representation and inclusion practices. It helps track progress, identify gaps, and promote a diverse and inclusive work environment.

How to get this KPI:

• Visier People
• Infor HCM
• Kazoo
• Equalture
• SAP SuccessFactors

#9 HR-to-Employee Ratio

Measures the number of HR personnel relative to the total number of employees in the organization. It helps assess HR staffing levels and the capacity to support employee needs.

How to get this KPI:

• BambooHR
• ADP Workforce Now
• Sapling
• Workday HCM
• People Analytics by Google Cloud

#10 Cost of Training per Employee

Calculates the average cost of training and development per employee. It helps assess the investment in employee development and its impact on performance and organizational goals.

How to get this KPI:

• Talentsoft
• Docebo
• Cornerstone OnDemand
• SAP SuccessFactors
• TalentLMS

How to use HR metrics with OKRs

Using HR KPIs in conjunction with Objectives and Key Results (OKRs) can maximize the impact of HR initiatives and drive organisational success. While OKRs provide a framework for setting ambitious goals and outlining the desired outcomes, HR KPIs offer the necessary metrics and measurements to track progress and evaluate performance. Here's how to effectively integrate HR KPIs with OKRs:

1. Define HR KPIs that align with OKRs: Start by identifying the HR KPIs that directly contribute to achieving the key results outlined in the OKRs. Ensure that the selected KPIs are measurable, relevant, and reflective of the HR initiatives and activities that will drive progress towards the desired outcomes.
2. Set ambitious targets for HR KPIs: Establish specific and challenging targets for each HR KPI that align with the objectives set in the OKRs. Ambitious targets push HR teams to strive for excellence and drive continuous improvement.
3. Monitor and track progress: Regularly monitor and track the performance of HR KPIs in relation to the corresponding OKRs. Leverage HR analytics tools or performance management platforms like Tability to gather and visualise data, providing insights into trends, gaps, and areas requiring attention.
4. Analyse and evaluate results: Analyse the data collected from HR KPIs to evaluate the effectiveness of HR initiatives in achieving the desired outcomes outlined in the OKRs. Identify strengths, areas for improvement, and opportunities to refine HR strategies for better alignment and impact.
5. Make data-driven adjustments: Utilise the insights gained from HR KPIs and OKR progress to make data-driven adjustments and optimise HR practices. Adapt strategies, allocate resources, and implement interventions based on the analysis of HR KPIs to ensure ongoing alignment with OKRs and drive progress towards organisational goals.

Best tools to track KPIs with OKRs:

• Tability
• Google Sheets