Key HR Metrics to Measure

Monitoring employee productivity is one of the most important aspects of employee management. This not only allows you to assess how well an employee contributes to a company's success. It can also be used as a guide for future promotions of deserving employees. Keeping track of employee productivity also allows you to see how well employees are compensated in relation to the amount of work or effort they put in at work. No two people are the same in terms of productivity. 

In fact, the variation is quite natural here. It is determined by the type of task performed by the employee and the quality of the output. It is difficult to develop a one-size-fits-all measurement.

HR Metrics in Recruitment 

1. Headcount: the total number of employees in the organization, or within the department you are tracking. 

2. Demographics: the characteristics of the workforce, including age, gender, education level, and length of service in the company. 

3. Time to Hire: the average number of days between when a job is posted, and when the candidate accepts the offer. 

4. Acceptance Rate: the number of offer letters extended by the organization, divided by the number of candidates who accept an offer. 

5. Cost per Hire: the typical cost of bringing on a new employee. This can be calculated by adding both internal and external hiring costs and then dividing the total number of employees hired in a given period.

6. Time to Productivity: the amount of time it takes for new employees to become acquainted with the organisation and begin working at full capacity.

7. New-Hire Turnover: the number of new hires who leave the organization within a set period of time (e.g. within their first year of employment). 

HR Metrics in Engagement & Retention 

8. Employee Satisfaction: the number of employees who would recommend the organization as a good place to work, versus the number of employees who wouldn’t. 

9. Total Turnover Rate: the number of employees who leave the company within a given period of time, divided by the average number of total employees. This is usually indicated in a percentage value, so this decimal is then multiplied by 100. 

10. Voluntary Turnover Rate: the turnover rate including only the employees who voluntarily leave the organization. 

11. Talent Turnover Rate: the turnover rate among the organization’s highest-performing and highest-potential employees.  

12. Retention Rate: the opposite of a turnover rate, in that the number of employees who remained in the organization over a given period is divided by the total number of employees. 

13. Retention Rate per Manager: the retention rate broken down by individual teams and managers. 

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