People Management Performance Management

HR KPIs to be measured – What exactly are HR KPIs?

Key performance indicators (KPIs) are essential factors used to evaluate a company’s performance. You can establish whether you’re still on track to meet your goals with the help of well-defined KPIs.

This strategy can be applied to your HR policies as well. But, in HR, what are the most significant KPIs? And, in practice, how should you define and measure these? In this essay, we’ll try to answer these questions.

What exactly is HR KPIs?

Before we get into which KPIs are critical for good HR policy, it’s essential to clarify what an HR KPI is.

Let’s have a look at it more closely!

This article looks at the key performance indicators (KPIs) essential for an organization’s HR goals. HR KPIs are indicators that may be used to show how your HR department contributes to the company’s overall success.

What additional value does your HR department provide through its activities? How well are you achieving the goals outlined in your company’s HR strategy?

Are these evaluated in connection to your organization’s overall KPIs?

Why are KPIs vital in HR?

KPIs are critical for reviewing and monitoring your HR strategy for various reasons. They serve as a yardstick by which you can assess your progress toward accomplishing crucial organizational goals. Are you on track, or have you gotten off track?

Furthermore, KPIs assess the efficiency and consistency of your employees. Do you have all the necessary knowledge, skills, and competencies on staff, or should you recruit, select, and retain people?

SMART KPIs’ Development

The SMART technique is the most excellent way to create a meaningful and relevant KPI. This signifies that the KPI meets the following requirements:

  • Specific – Is the KPI’s goal crystal clear and unmistakable?
  • Measurable – Can you use an objective measurement method to assess whether the target has been met?
  • Acceptable – do staff and management agree with and support the KPI and its objectives?
  • Realistic – can the goal of the set be achieved?
  • Time-bound – when to complete the goal?

For HR professionals, the essential KPIs

Now that we understand what KPIs are and what value they give, let’s look at some essential KPIs for HR professionals today. Eleven similar KPIs have been identified:

  • Absenteeism rate: Evaluate your employees’ engagement by looking at their absenteeism rate.
  • Overtime Hours: Keep a close eye on your employees’ workloads.
  • Training Costs: Examine your investments in your staff.
  • Employee Productivity: Keep record of the team’s overall efficiency.
  • Long-Term Employee Satisfaction: Ensure that your staff is happy in the long run.
  • Cost per hire: Analyze what it takes to discover the right fit at a low cost per hire.
  • Recruiting Conversion Rate: Determine the most effective recruitment strategy.
  • Time to Fill: Keep track of how long it will take you to locate a new employee.
  • Talent rating: Assess the quality of your staff with a talent rating.
  • Employee Turnover Rate: Determine how effective your retention efforts are. 
  • Talent Turnover Rate: Determine how many talents you change regularly.
  • Rate of dismissal: Find out if you’re hiring the proper people by looking at your dismissal rate.
  • The ratio of females to males: Recognize your company’s gender diversity.
  • Employees who work part-time: Observe how part-time workers have changed throughout time.
  • Average Length of Stay: Keep track of how long your employees stay with you.


KPIs that are well-defined make the job of an HR manager much more accessible. They provide valuable data and insights into the factors that influence the success of your HR strategy.

When you utilize the correct HR solutions, measuring these KPIs becomes much easier and more successful.



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