HR Metrics

Being able to back up your decisions with clear data evidence is all part of strong leadership in HR, and there’s a high chance you’re already on top of the 11 metrics we’ve outlined below as the most important ones for any HR department to track.

But when you head up a fast-paced team like HR, it’s common for metrics to get sidelined as your expertise is needed on a deluge of other everyday issues. That’s why it’s worth a quick check over our list of metrics to make sure you’ve still got all bases covered. There may even be some metrics you haven’t considered monitoring before. 

By showing exactly how your employees impact company finances, tracking these essential metrics: 

  • Helps keep your HR team focused and motivated.
  • Proves the worth of HR to senior management; without you, they’d never have access to these valuable statistics or the power to improve them.
  • Allows you a tighter grasp on your HR budget as you can easily identify any big losses and confidently decide which areas need your team’s attention.

Take a look through the following 11 metrics every HR department should keep an eye on:

1. Tenure

An average figure of how long employees have been with your company.

2. Revenue per employee

How much revenue each employee brings in on average.

3. Employee satisfaction

Usually ascertained through surveys, a measure of the success of HR’s employee engagement initiatives.

4. Absence rate

How many working days are lost due to employee absences. Often used an alternative measure of employee satisfaction.

5. Benefit cost

How much your benefits package costs the company per employee.

6. Employee turnover

The number of employees who leave your company in any given year.

7. Turnover cost

The average financial impact of an employee leaving your company based on separation costs, vacancy costs, recruitment costs and training costs.

8. Internal hire rate

The percentage of employees who progressed to their current position from another role in the company.

9. External hire rate

The percentage of employees who were recruited into their current role from outside the company.

10. Time to fill

How long the gap is between an employee leaving and a new recruit filling their role. This is a key measure of your HR team’s efficiency.

11. Training cost-per-employee

The amount spent each year on training per employee.

Of course, everyone tracks metrics a little differently and you have to tailor which ones you focus on to how your company works, but the 11 above act as a good baseline for most HR teams to follow. 

Are there any metrics you track that we haven’t mentioned? What are they and how do they help you? Let us know in the comments section below.

We are the HR and employment law experts from esphr. 

It’s our mission to advise and develop the employment law capability of HR professionals wherever we can, helping HR teams make a real commercial difference to their organisations. That way, you spend less time solving operational issues and more time actioning projects that drive far-reaching change in your company.

Call 0333 006 2929 or email today to discover exactly how we can help you.


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