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Human Resources KPI’s every HR professional must know.


Human Resource Managers are increasing using KPI’s which are also called indicators in their day-to-day work. Following are seven key indicators that are used for monitoring Human Resource components in any organization.
What is a KPI?

A Key Performance Indicator (KPI) is a metric that measures the performance of a particular activity or process. The objective for this is to serve as a reference depending on the process or activity on the basis of the objective you want to achieve. These indicators help HR professionals to evaluate the effectiveness of each component for which these indicators are set with respect to overall HR department objective.

Characteristics of a KPI

Following are four characteristics of a KPI:

1.    Concrete: The KPI should be tangible and it must have a specific goal.
2.    Measurable: If you can not measure the KPI, it isn’t a KPI.
3.    Reachable: Stay realistic when defining KPI that will determine your success.
4.    Relevant: Monitor only that things that really matter.

The most important KPIs in Human Resources

  1. Retention of talent
    The retention of talent is a KPI that indicates the job stability in the organization. This allows you to learn about the average employee retention in the organization. It is linked to the factors such as remuneration, organization culture and policies, chance of promotion, labor market and many other factors. The loss of talent will force you to spend time and money to recruit a new candidate. An index of high staff turnover implies high costs for the employer. It is need of the day to reduce on these employees replacement costs to the minimum. The rate of retention of talent is calculated by comparing the number of talent who joined the organization in a specific period of time vs. those who stayed during the same period of time.

  1. Duration in the position
    Many employees losses are closely related to the time they remain in the same position. If they feel they won’t be promoted, many employees tend to look for new opportunities outside the organization. You can calculate the average time it takes for an employee to ascend by counting the number of months it takes each employee in same position/role and dividing the result by the total number of employees in the organization.

  1. Absenteeism
    This indicator measures the absences of employees due to delays, sick leave or any excused or unexcused absences. Based on the average value of the hour worked, the impact of absenteeism cost on the organizations can be quantified.

  1. Average time for recruitment
    This measures the time between an employee leaving the organization and another candidate is chosen and selected to replace her/him. In any case this time should not increase more than a month plus any notice period that may be required by selected candidate who is leaving his organization.

  1. Training & Development
    Relevant training & Development Plan for the employees has direct impact on the organization activity. This KPI is meant to help boost the productivity levels of each employee .It enhance employees satisfaction level and loyalty towards organization.

  1. Average time to achieve goals
    This KPI is going to measure the efficiency of your workforce to see how long it takes them to accomplish specific tasks and goals that have been set for their position in the organization.

  1. Accidents in the workplace
    Being able to measure the number of accidents in the workplace is going to be extremely important and useful in order to avoid future issues.


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