25 common HR metrics you need to track
25 common HR metrics you need to track

4 minutes read

25 common HR metrics you need to track
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Posted:
09/03/2023
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Welcome to the world of people data analytics! Over the past few years, many organisations have struggled with high employee turnover rates, stiff competition in the job market, and the challenges of retaining top talent. However, as we move forward it has become increasingly clear that companies are starting to recognise the value of people data and analytics. 

We’ve put together a comprehensive guide to help you get started with HR metrics. We’ll cover the basics of what HR metrics are and why they matter. Plus, we’ve compiled a list of 25 essential HR metrics that you can start measuring today.

As a result, if you’re looking for an easy and efficient way to analyse your HR metrics, Worknice can help. So, let’s dive in and explore the exciting world of people data analytics!

What are HR metrics

HR metrics are quantitative measurements used to track and analyse various aspects of an organisation’s human resources activities. As a result, it is possible to measure the effectiveness of HR initiatives and policies, along with areas of improvements.

HR metrics cover a wide range of areas, including recruitment and hiring, employee engagement, diversity and inclusion and more. 

Why are HR metrics important?

By collecting and analysing HR metrics, organisations can gain insights into how well their HR programs are working and make data-driven decisions to improve their processes and outcomes. HR metrics can also help organisations identify potential issues early on and take proactive steps to address them before they become major problems.

Common HR KPIs to measure

Diversity and inclusion kpis to measure

  1. Workforce diversity: This KPI measures the representation of different demographic groups in the workforce, such as gender, race, ethnicity, age, and disability status. It can help identify areas of underrepresentation and track progress in improving diversity.
  2. Diversity in leadership: This KPI measures the representation of different demographic groups in leadership positions, such as executives and managers. It can help identify areas where diversity and inclusion efforts need to be focused and track progress in creating a more diverse and inclusive leadership team.
  3. Diversity in recruitment: This KPI measures the representation of different demographic groups in the candidate pool for open positions. It can help identify areas where recruitment efforts need to be improved and track progress in creating a more diverse candidate pool.
  4. Employee engagement: This KPI measures the level of engagement and satisfaction employees have with the organization’s diversity and inclusion efforts. It can help identify areas where employees feel there is room for improvement and track progress in creating a more inclusive and welcoming workplace.
  5. Employee turnover by demographic group: This KPI measures the turnover rates of different demographic groups within the organization. It can help identify areas where employees may be experiencing discrimination or bias and track progress in improving retention rates for underrepresented groups.
  6. Diversity and inclusion training: This KPI measures the percentage of employees who have completed diversity and inclusion training. It can help identify areas where training efforts need to be improved and track progress in creating a more educated and inclusive workforce.

HR function kpis to measure

  1. HR cost as a percentage of revenue: This KPI measures how much an organization spends on HR activities as a percentage of its total revenue.
  2. HR to people ratio: How many hr resources are active in the business as compared to total people count.

Recruitment KPIs to measure

  1. Time-to-fill: This KPI measures the time it takes to fill a vacant position, from the time the position is posted to the time the offer is accepted. A longer time-to-fill can indicate inefficiencies in the recruiting process or a tight job market.
  2. Cost-per-hire: This KPI measures the total cost of recruiting and hiring a new employee, including advertising, recruiting, interviewing, and onboarding costs. A higher cost-per-hire can indicate inefficiencies in the recruiting process or a high level of competition for top talent.
  3. Source of hire. This KPI measures where new hires come from, such as job boards, employee referrals, social media, or career fairs. This can help organisations evaluate the effectiveness of different recruiting channels and adjust their strategies accordingly.
  4. Candidate experience: This KPI measures how satisfied candidates are with the recruiting process, including the application process, communication, and overall experience. A positive candidate experience can help organizations attract and retain top talent.
  5. Offer acceptance rate: This KPI measures the percentage of job offers that are accepted by candidates. A low offer acceptance rate can indicate a need to improve the job offer or the overall recruiting process.
  6. Quality of hire: This KPI measures how well new hires perform on the job, such as their productivity, job satisfaction, and retention rate. A high-quality hire can have a positive impact on the organization’s bottom line and overall success.

Onboarding KPIs to measure

  1. Time-to-productivity: This KPI measures the time it takes for new hires to reach full productivity in their role. A shorter time-to-productivity can indicate an effective onboarding program that sets new hires up for success.
  2. Onboarding engagement: This KPI measures the level of engagement and satisfaction new hires have with their role and the organisation during their onboarding period. Survey technology is recommend to collect KPI data.
  3. Onboarding completion rate: This KPI measures the percentage of new hires who complete the onboarding program within a given time period. A high completion rate can indicate an effective and engaging onboarding program.
  4. Manager satisfaction: This KPI measures the level of satisfaction that managers have with their new hires’ performance and readiness during the onboarding period. A high level of manager satisfaction can indicate an effective onboarding program.
  5. Compliance rate: This KPI measures the percentage of new hires who complete all required compliance training during the onboarding period. A high compliance rate can indicate an effective onboarding program that ensures new hires are fully trained and knowledgeable about company policies and procedures.

    Case study: onbaording

    Case Study: How an Australian business streamlined the onboarding process with a modern, consolidated HR platform

    Read more

    Engagement KPIs to measure

    1. Employee satisfaction. This KPI measures how satisfied employees are with their job and the organisation as a whole. Survey technology is recommend to collect KPI data.
    2. Employee turnover. This KPI measures the percentage of employees who leave the organisation within a given time period. High turnover rates can indicate low employee engagement and satisfaction.
    3. Absenteeism rate. This KPI measures the percentage of time that employees are absent from work, either planned or unplanned, during a given time period. High absenteeism rates can indicate low employee engagement and satisfaction.
    4. Employee Net Promoter Score (NPS). This KPI measures how likely employees are to recommend the organization as a place to work to their friends and colleagues. A high NPS can indicate high employee engagement and satisfaction.
    5. Employee retention rate. This KPI measures the percentage of employees who stay with the organisation over a given time period. High retention rates can indicate high employee engagement and satisfaction.
    6. And finally, employee participation in training and development programs. This KPI measures the percentage of employees who participate in training and development programs offered by the organization. High participation rates can indicate high employee engagement and interest in career development.

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