As an HR consultant, we know how powerful HR can really be to your business.
But for you, it can quickly feel very intangible, and we get that…
That’s why it’s so important to create HR Metrics. They allow you to analyse data and make great decisions for your business and people.
As well as benchmark, track and improve your company’s performance in 2025.
HR Metrics will help you to:
- Understand how HR impacts your bottom line
- Create a people strategy that aligns with business goals
- Make data-driven decision-making to improve accuracy
- Improve HR’s efficiency and effectiveness
- Make HR more accountable to goals and targets
Key HR metrics to track
To effectively demonstrate HR’s value, it is crucial to identify and track the right metrics.
While the choice of metrics may vary, depending on your organisation’s specific goals and challenges, the following are some key HR metrics that are widely applicable:
Management Metrics
Revenue/profit per employee:
Measures the average revenue or profit generated by each employee. This metric provides insight into overall employee contribution to the company’s financial performance and helps in assessing productivity and efficiency.
Labour cost per employee:
Measures the average cost of labour associated with each employee, including salaries, benefits and other compensation-related expenses. This metric helps with budgeting and cost management.
Labour cost percentage of revenue:
Indicates the proportion of revenue spent on labour costs. This metric helps to evaluate the efficiency of labour costs relative to the revenue generated.
Labour cost percentage of total expenses:
Measures the proportion of total expenses that are attributed to labour costs. This metric provides insight into how labour costs impact overall expense management.
Absence Metrics
Absence rate:
Measures the percentage of scheduled workdays that employees are absent over a specified period. This metric helps in understanding overall employee attendance and identifying potential issues affecting workforce productivity.
Cost of absenteeism:
Calculates the total financial impact of employee absences on the organisation, including lost productivity, overtime costs and temporary replacements. This metric highlights the economic effect of absenteeism and helps in developing strategies to mitigate its costs.
Absence rate per manager/department:
Breaks down individual managers’ or departments’ absence rates to identify areas with higher or lower absenteeism. This metric helps target interventions and manage attendance issues at a more granular level.
Employee turnover and retention Metrics
Retention rates:
This metric measures the percentage of employees who remain with the organisation over a specified period. High retention rates indicate stable and satisfied employees, contributing to organisational stability and reduced hiring costs.
Retention rate per manager:
Calculates the retention rate for employees managed by individual managers. This metric helps to identify managers who effectively retain their team members and those who need support to improve retention.
Retention of talent:
Focuses on retention rates specifically for high-performing and high-potential employees. This metric ensures that top talent stays with the organisation, supporting sustained business performance and growth.
Turnover rate:
Represents the percentage of employees who leave the organisation within a specific period. High turnover rates can indicate dissatisfaction and issues within the workplace, impacting overall productivity and increasing recruitment costs.
Voluntary turnover rate:
The percentage of employees who choose to leave the organisation within a specific period. This metric helps to identify areas where employee satisfaction can be improved to reduce voluntary exits.
Involuntary turnover rate:
The percentage of employees who are terminated or leave due to employer-initiated actions within a specific period. It helps in assessing the hiring process’s effectiveness and employee performance management.
Unwanted turnover rate:
Measures the percentage of high-performing employees who leave the organisation. Unwanted turnover can be costly and disruptive, highlighting the need for effective retention strategies for top talent.
Turnover rate of talent:
The rate at which talented and high-performing employees leave the organisation. This metric is critical for maintaining a skilled and experienced workforce.
Turnover rate per manager/department:
This metric breaks down turnover rates by individual managers or departments, identifying areas where turnover is high and where targeted interventions may be necessary.
Cost of turnover:
Represents the total cost incurred due to employee turnover, including hiring, training and lost productivity. This metric highlights the financial impact of turnover on the organisation.
90-day quit rate:
Measures the percentage of new hires who leave the organisation within their first 90 days. A high rate can indicate issues with the hiring process, onboarding or job expectations.
Employee performance Metrics
Employee productivity rate:
Assesses the amount of output or value created by an employee. This metric helps in understanding individual contributions to the organisation’s overall performance.
Goal completion rate:
Measures the percentage of goals or objectives employees achieve within a specified period. It helps to determine how effectively employees meet their targets.
Satisfaction / Engagement Metrics
Employee Net Promoter Score (eNPS):
A metric that measures how likely employees are to recommend their workplace to others. It is calculated based on responses to a single question: “On a scale from 0 to 10, how likely are you to recommend this company as a place to work?” The score helps to gauge overall employee loyalty and satisfaction.
Employee Engagement Index (EEI):
This index measures employees’ engagement and commitment to their organisation. It is typically derived from survey responses covering various aspects of engagement, such as enthusiasm for work, alignment with company goals and willingness to go above and beyond in their roles.
Employee satisfaction index:
A comprehensive metric that evaluates employees’ overall satisfaction with their job and workplace environment. This index is based on survey data that assesses factors like job contentment, work-life balance, compensation and relationships with colleagues and managers.
Employee innovation index:
This index measures the extent employees feel encouraged and empowered to innovate within the organisation. It is usually assessed through surveys that evaluate employees’ perceptions of the company’s support for new ideas, the availability of innovation resources and the overall culture of creativity.
Skills and training Metrics
Time to proficiency:
Measures the average time for new hires or employees undergoing training to reach maximum productivity. This metric helps to evaluate the efficiency of onboarding and training programs.
Skills gap analysis:
Identifies the difference between employees’ current skills and the skills required to meet organisational goals. This analysis helps in planning targeted training and development programs to bridge these gaps.
Skills matrix:
A visual tool that maps employees’ skills against the skills required for their roles or projects. It helps to identify strengths, gaps and areas for development within the workforce.
Time spent on training:
Measures the total time employees spend on training activities within a specific period. This metric helps in assessing the investment in employee development and its alignment with skill enhancement goals.
Training completion rate:
The percentage of employees who complete assigned training programs. This metric indicates the effectiveness of training implementation and employee engagement with development initiatives.
Training efficiency:
Assesses the return on investment (ROI) of training programs by comparing the resources invested (time, money) against the improvements in employee performance and productivity.
Training effectiveness:
Evaluates the impact of training programs on employee performance and skill enhancement. This metric often involves pre-and post-training assessments to measure knowledge gains and behavioural changes.
Training expenses per employee:
Calculates the average cost spent on training per employee within a specific period. This metric helps in budgeting and understanding the financial investment in employee development.
Diversity and Equality Metrics
Measures the representation and treatment of various demographic groups within the organisation. This metric ensures that all employees, regardless of background, have equal opportunities and are treated fairly, promoting an inclusive workplace culture.
Diversity demographics:
Tracks the composition of the workforce across various demographic dimensions, such as gender, race, ethnicity, age and other relevant characteristics. This metric helps in assessing the organisation’s diversity and identifying areas for improvement in representation.
Diversity in leadership:
Evaluates the representation of diverse groups within leadership and management positions. This metric highlights the inclusivity of the organisation’s leadership and can indicate how well diversity is promoted at higher levels of the company.
Employee Resource Group (ERG) participation:
Measures employee engagement and participation rates in Employee Resource Groups (ERGs). High participation rates suggest a supportive environment for diverse groups and can indicate the effectiveness of ERGs in fostering a sense of belonging and community within the organisation.
We can help…
We can help you to make HR and your work tangible, so that you can evidence your department’s real value.
Get in touch for a confidential chat and we can discuss how we can help you to create and track HR metrics in the future.
