KPIs For HR Department

HR Department KPIs

KPIs HR Department

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KPIs for HR act as strategic metrics that allow HR managers to determine how well the department is at accomplishing its goals towards the organization. In contrast to older times, HR managers now use quantifiable data in the form of KPIs in measuring the success of their activities.

They often review the progress of processes like hiring, retention and related decisions based on such KPIs. So, some of the most commonly used KPIs that provide a full picture of how an HR department is performing are:

1. Cost Per Hire

It is important for HR managers to hire people that fit the jobs that they are offering. Spending resources in hiring people who are not worth it can be a loss for the company. So, cost per hire is a KPI that measures the resources invested in recruiting each employee to find the most feasible process of acquiring talents.

2. Recruiting Conversion Rate

This KPI shows the number of recruitment applicants that were converted to employees. This is another ratio that helps to determine the most efficient possible ways to find the best candidates within the most cost-effective style. You can compare different hiring methods using this ratio to find the most effective one.

3. Employee Productivity Rate

It is one of the major responsibilities of the HR department to ensure that the employees are engaged in their work and providing proper output. Employee productivity rate, thus, calculates the growth rate of the productivity of the employees in an organization. Low productivity rates call for special attention towards their work environments supervision or any such impediments.

4. Net Promoter Score

NPS or Net Promoter Score measures the likeliness of someone recommending your business to another person. A high NPS found in the HR department is an indicator of the higher satisfaction of the employees. So, it gives an idea about how the employees perceive their work and the organization as a whole.

5. Employee Satisfaction Rate

Satisfied employees are crucial to the efficiency of an organization. Hence, HR managers can use Employee satisfaction rates to understand every employee’s degree of engagement as well as their attitude towards the organization. Lower satisfaction rates can lead to a higher turnover, which will require investigation into the reasons for their dissatisfaction.

6. Absence Rate

Absence rates provide an idea about the rate of absenteeism of employees in an organization. This can be used in conjunction with Absence cost, which is the measure of the total cost of replacement or absence management for absent employees, in order to better comprehend the barriers against employee engagement.

7. Turnover

Turnover rate is a commonly used metric that indicates the number of employees that left the organization. Turnover can be voluntary, involuntary or even unwanted. An HR manager’s job is to ensure the retention of high performing employees and the resignation of poor performers throughout the wave of turnover.

There are a number of KPIs that can be used to measure how effective an HR department is. But not all of those measures may be relevant to your company. Hence, instead of spending valuable time, energy and resources in figuring out all the available KPIs for your HR department, check out this list and pick out the ones that fit your needs the best.


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