The main HR metrics you should be measuring

16 of January, 2025

It is safe to say that the more effective the human resources department is, the more likely the organization is to succeed. For instance, a lot of organizations make use of human resources metrics, also known as HR Metrics. Organizations actively using metrics have had more than 80% of success rate in their activities. It is time for you to know which metrics you should be measuring and what exactly are they. Keep reading!

What are HR Metrics?

HR Metrics or Human Resources Metrics are standards of measurement used to track the significance and efficiency of human resources initiatives. Specifically, the areas these metrics cover include turnover, return on human capital, costs of labor, expenses per employee, etc.

Moreover, over the years, executives of organizations have increasingly gotten interested in HR reports. They seek explicit and detailed reports which make HR Metrics not just an option but now a necessity. There are different types of HR Metrics and all of them prove to be important in their ways.

Examples of HR Metrics

Some HR Metrics are certainly important when it comes to giving a detailed report and they include:

Recruitment Metrics

This has to do with the employees in the organization and there are different factors to consider in this metric.

1. Acceptance Rate: this refers to how many applicants accept the offers given to them in the organization.
2. Headcount: this has to do with the number of all the employees in a particular department.
3. Demographics: this involves the characteristics of employees in an organization such as age, gender, level of education, and years in service.
4. Cost per Hire: this refers to how much it costs to hire new employees at a given period.  
5. Time to Productivity: this refers to how long it takes for new employees to settle into their positions and start being productive for the organization.
6. New-hire Turnover: this is the number of new employees that leave within the short period of their employment, for example, the first year of employment.

Engagement & Retention

1. Employee Satisfaction: the number of employees that recommend the organization as a good place to work versus those that did not. This can be determined via a survey.
2. Total Turnover Rate: the total number of employees that leaves an organization during a particular time.
3. Voluntary Turnover Rate: this refers to the number of employees that left the organization voluntarily.
4. Talent Turnover Rate: this refers to the turnover rate of high-performing employees in the organization
5. Retention Rate: this refers to the number of employees that stayed in the organization during a given period.
6. Retention Rate per Manager: this is the retention rate measured by teams and managers.

Time Tracking

1. Absence Rate: the number of times employees were absent at a given time.
2. Absence Rate per Manager: absence rate in individual teams and managers.
3. Overtime Hours: the number of overtime spent by employees in the organization. 

Employee Value & Performance

1. Revenue per Employee: the total amount of revenue spent on employees in the organization.
2. Performance and Potential: this is categorizing employees by their potential and performance in the organization.
3. Employee Performance: tracking of employee performance through assessments and reviews.
4. Goal Tracking: tracking of goals set by employees in the organization and how they benefit the organization.
5. Company Performance: this refers to how well the company is performing in regards to the performance of the employees in the organization.

Training & Development

This refers to the efforts made by the organization to train and develop the employees and enhance performance for the benefit of said organization. 

The metrics include:

1. Training expenses per employee
2. Training completion rate
3. Time for completion
4. Training effectiveness

HR Service & Software

This refers to HR functions in the organization and how they affect the performance of employees in the organization. It also highlights the efforts of HR and the needs they might have to better serve the organization. The metrics include:

1. The ratio of HR Professionals to Employees
2. Cost of HR per Employee
3. HR Software Employee Participation Rate
4. ROI of HR Software

HR Metrics are important for an organization to determine the needs of its employees. It also helps the organization make decisions in several areas that would serve their interest.

It is however impossible for an organization that is just starting on HR Metrics to get it in their first trial. This is why they need the presence of tools like Sesame HR. Certainly, this will enable the organization to put its good leg forward as they navigate the embrace of HR Reports as a new path.

Tiago Santos

HR Influencer | LinkedIn | | Web | +post

HR professional with experience in building strong 𝐜𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐯𝐞 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐢𝐞𝐬 among HR leaders. As the founder of the 𝐇𝐑 𝐂𝐥𝐮𝐛 and 𝐇𝐑 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲, I leverage my 15+ years of experience to enhance the professional landscape for HR leaders.

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