KPIs for HR

KPI	Formula to Measure	When to Use	Advantages	Drawbacks
Employee Turnover Rate	(Number of Employees Who Left / Total Employees) * 100%	Measure employee retention and job satisfaction	Identifies HR and management issues	Ignores hiring and training costs
Employee Satisfaction Index	(Total Satisfied Employees / Total Surveyed Employees) * 100%	Assess overall employee morale and engagement	Helps improve workplace culture and retention	Subjective and dependent on survey quality
Time to Fill a Vacancy	(Total Days to Fill All Vacancies / Number of Vacancies Filled)	Evaluate recruitment efficiency and speed	Reduces downtime and cost of vacancies	Ignores variations in job complexity
Cost per Hire	(Total Recruitment Costs / Number of Hires)	Monitor recruitment expenses and efficiency	Identifies cost-effective hiring methods	Ignores quality of hires
Training Hours per Employee	(Total Training Hours / Total Number of Employees)	Assess employee development and skill enhancement	Helps improve workforce competence and productivity	Ignores training quality
Absenteeism Rate	(Total Days of Employee Absence / (Total Employee Workdays – Paid Time Off)) * 100%	Measure employee attendance and reliability	Identifies trends in absenteeism and its impact	Ignores legitimate absences
HR to Employee Ratio	(Total HR Staff / Total Employees)	Evaluate HR department size and workload	Helps optimize HR department staffing	Ignores HR department efficiency
Compensation Ratio	(Total Compensation Costs / Total Operating Costs) * 100%	Assess the proportion of expenses dedicated to employee compensation	Identifies cost control and competitiveness	Ignores non-compensation expenses
Benefits Cost per Employee	(Total Benefits Costs / Total Number of Employees)	Monitor employee benefits expenses	Helps control benefits-related expenditures	Ignores variations in benefits usage
Training Return on Investment (ROI)	[(Gain from Training – Cost of Training) / Cost of Training] * 100%	Evaluate the effectiveness of training programs	Measures the impact of training on performance	Ignores intangible benefits of training
Employee Engagement Score	(Total Engaged Employees / Total Surveyed Employees) * 100%	Assess employee commitment and enthusiasm	Identifies areas for improvement in engagement	Subjective and dependent on survey quality
Leadership Development ROI	[(Leadership Impact – Leadership Development Cost) / Leadership Development Cost] * 100%	Evaluate the effectiveness of leadership development programs	Measures the impact of leadership training	Ignores long-term leadership contributions
Diversity and Inclusion Index	(Total Diverse and Inclusive Employees / Total Employees) * 100%	Assess diversity and inclusion efforts	Helps create a more inclusive and equitable workplace	Subjective and dependent on self-reporting
Employee Churn Rate	(Number of Employees Who Left / Average Number of Employees) * 100%	Monitor employee turnover and instability	Identifies issues causing rapid workforce changes	Ignores temporary or seasonal fluctuations
Average Employee Tenure	(Total Years of Service for All Employees / Total Number of Employees)	Assess employee loyalty and retention	Helps create long-term workforce strategies	Ignores variations in job roles and levels
HR Technology Utilization	(Number of HR Technology Users / Total HR Staff) * 100%	Measure the adoption of HR technology solutions	Identifies technology efficiency and effectiveness	Ignores employee technology proficiency
Employee Health and Wellness Participation	(Number of Employees Participating / Total Employees) * 100%	Monitor employee participation in wellness programs	Promotes a healthy workplace culture	Ignores employee health outcomes
Exit Interview Participation Rate	(Number of Exit Interviews Conducted / Number of Employee Departures) * 100%	Evaluate employee feedback collection effectiveness	Identifies reasons for employee departures	Ignores feedback quality and honesty
HR Compliance Rate	(Number of Compliance Audits Passed / Total Compliance Audits Conducted) * 100%	Ensure HR department adherence to legal and regulatory standards	Avoids legal penalties and risks	Ignores underlying compliance issues
Employee Self-Service Adoption Rate	(Number of Employees Using Self-Service Tools / Total Employees) * 100%	Measure employee utilization of self-service HR tools	Increases HR efficiency and employee empowerment	Ignores non-adopters’ needs and preferences
Cost of Employee Disputes	Total Cost of Resolving Employee Disputes	Monitor the financial impact of employee disputes	Identifies areas for conflict resolution improvement	Ignores non-financial dispute aspects