Must-Know Human Resources Kpis [Latest Report]

Highlights: The Most Important Human Resources Kpis

  • 1. Employee Turnover Rate
  • 2. Time to Hire
  • 3. Cost per Hire
  • 4. Training and Development Costs
  • 6. Employee Absenteeism Rate
  • 7. Employee Net Promoter Score (eNPS)
  • 8. Employee Engagement Rate
  • 10. Revenue per Employee
  • 11. Skills Gap Analysis
  • 12. Diversity and Inclusion Rate
  • 13. Leadership Effectiveness
  • 14. Employee Satisfaction Rate
  • 15. Benefits Utilization Rate
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In today’s competitive business environment, the efficiency and effectiveness of the Human Resources (HR) department play a critical role in the overall success of an organization. To ensure that HR management is aligned with an organization’s goals and continuously contributes to its growth, Human Resources Key Performance Indicators (KPIs) are essential. These quantifiable metrics provide insight into the functioning of the HR department and serve as benchmarks against which its progress, successes and shortcomings can be evaluated.

In this data-driven age, understanding and leveraging these KPIs can truly make the difference between stagnation and progress. In this blog post, we will delve deep into the realm of HR KPIs, exploring their importance, the key metrics to track, and how they can be effectively used to streamline HR processes and drive organizational growth. So buckle up and join us as we navigate the world of HR KPIs and unlock their potential to make the workplace environment more conducive and productive for all stakeholders.

Human Resources KPIs You Should Know

1. Employee Turnover Rate

Measures the number of employees who leave the organization within a specific period, typically calculated monthly or annually. High turnover rates can indicate issues with employee satisfaction, retention, or recruitment.

2. Time to Hire

The average time it takes to fill a vacant position, from job posting to hiring the candidate. Shorter time-to-hire rates indicate efficient recruitment processes.

3. Cost per Hire

The total cost involved in hiring a new employee, including recruitment, training, and onboarding expenses. Lower costs suggest more efficient hiring strategies.

In the highly competitive world of business, the efficiency and effectiveness of the human resources (HR) department play a vital role in the overall success of an organization.

4. Training and Development Costs

The amount of money invested in employee training and development programs. This KPI ensures continuous employee growth, improved job performance, and better employee engagement.

5. Performance Appraisal Completion Rate

The percentage of employee performance reviews completed on time. High completion rates indicate that managers are effectively monitoring and discussing employee performance.

6. Employee Absenteeism Rate

The percentage of days employees are absent from work, excluding scheduled leaves or vacations. High absenteeism rates can signal poor employee engagement, burnout, or workplace issues.

Human Resources KPIs play a crucial role in understanding and managing an organization’s workforce effectively.

7. Employee Net Promoter Score (eNPS)

A metric used to gauge employee satisfaction and loyalty. It measures how likely employees are to refer your organization to their friends and colleagues on a scale of -100 to +100.

8. Employee Engagement Rate

The level of emotional and intellectual commitment employees show toward their organization. Higher engagement rates indicate increased employee satisfaction, productivity, and retention.

9. Human Capital ROI (Return on Investment)

Measures the financial returns achieved in comparison to the investment made in employees, such as salary, benefits, and training costs. Higher ROI indicates more effective and efficient human capital utilization.

10. Revenue per Employee

The division of total organizational revenue by the number of full-time employees. A higher ratio suggests greater productivity and effective human resource management.

11. Skills Gap Analysis

Identifies the difference between the skills required for a particular job and the actual skills possessed by employees. Regular assessment ensures continuous skill development and helps maintain a competitive workforce.

12. Diversity and Inclusion Rate

The percentage of employees from different demographics, ethnicities, and backgrounds within the organization. A diverse workforce can boost creativity, innovation, and employee satisfaction.

13. Leadership Effectiveness

Evaluates the effectiveness of company leaders, such as managers and supervisors, in driving employee performance and engagement. Factors include communication, motivation, and goal-setting abilities.

14. Employee Satisfaction Rate

The general satisfaction levels of employees with their work environment, workplace culture, and overall job experience. Higher satisfaction rates indicate greater long-term employee retention and commitment.

15. Benefits Utilization Rate

The percentage of employees actively using the benefits provided by the organization, such as health and wellness programs or tuition reimbursement. Higher utilization rates suggest that the benefits offered align well with employee needs and preferences.

Human Resources KPIs Explained

HR KPIs play a critical role in understanding and effectively managing an organization’s workforce. Metrics such as employee turnover rate, time to hire, and cost per hire help organizations identify recruitment, retention, and satisfaction challenges so they can optimize their hiring strategies. At the same time, focusing on training and development costs and performance review completion rates ensures continued employee growth and improved job performance.

Monitoring employee absenteeism, eNPS, and engagement rates can signal underlying issues such as burnout or job dissatisfaction that ultimately impact productivity and retention. Human Capital ROI and Revenue per Employee measure the overall effectiveness of people management and provide valuable insight for future investments. Identifying gaps in employee skills and promoting a diverse workforce through Skills Gap Analysis and Diversity and Inclusion Rate fosters innovation and a high-performance culture.

Assessing Leadership Effectiveness and Employee Satisfaction Rate ensures that organizational structures support growth and retention, while Benefits Utilization Rate reflects the alignment of company benefits with employee needs and values. Collectively, these KPIs help organizations maximize workforce potential and ensure long-term success.


As the business environment continues to change and the role of human resources expands, incorporating and tracking HR KPIs within an organization becomes critical to success. By measuring employee performance, engagement, hiring processes, and retention, HR professionals can identify and address key areas for improvement.

These KPIs serve as valuable tools for adjusting organizational strategies, improving the employee experience, and ultimately driving business results. However, it is essential to approach HR KPIs as an ongoing and evolving process to ensure that your organization remains agile and competitive in the ever-changing world of work.


What are Human Resources KPIs, and why are they important for an organization?

Human Resources KPIs (Key Performance Indicators) are measurable values that help an organization evaluate the performance and effectiveness of their HR management. They provide insights into various aspects of employee performance, engagement, and satisfaction, thereby ensuring that HR strategies align with the company's goals and objectives.

What are some common Human Resources KPIs used by organizations?

Common HR KPIs include employee turnover rate, time to fill a position, training cost per employee, employee productivity, job satisfaction, attendance rate, and employee engagement level. Each of these KPIs offer valuable insights into an organization's overall human resources performance.

How can companies use Human Resources KPIs to improve employee retention?

By closely monitoring HR KPIs such as employee turnover rate, job satisfaction, and employee engagement, organizations can identify areas of concern and implement targeted strategies to address these issues. This may include offering competitive compensation packages, providing career growth opportunities, or improving workplace culture to increase employee satisfaction and reduce the chances of employees seeking opportunities elsewhere.

What role does technology play in tracking and analyzing Human Resources KPIs?

Technology plays a crucial role in tracking and analyzing HR KPIs. Advanced HR software and analytics tools enable organizations to easily collect and analyze data on various KPIs, providing valuable insights into employee performance, engagement, and satisfaction. These tools also help identify trends and patterns, allowing HR professionals to make data-driven decisions to optimize their human resources strategies.

How often should an organization review and evaluate its Human Resources KPIs?

The frequency of reviewing HR KPIs can vary depending on the organization and the specific goals they aim to achieve. Generally, organizations should review their KPIs at least quarterly to identify trends and areas for improvement. However, certain KPIs may be monitored more frequently, such as monthly or even weekly, to keep a close eye on critical areas and ensure proactive decision-making.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

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