Human Resources KPIs, Metrics & Benchmarks

KPIs & Metrics to Measure and Manage HR Department Performance

What are Human Resources KPIs?

HR KPIs are designed to measure the efficiency and effectiveness of human resources processes including recruiting, employee on-boarding, training and development, benefits administration and payroll processing. Typical HR departments measure metrics related to both inter-departmental productivity (e.g., Requisitions per Recruiter, Calls Handled per Employee) and work quality (e.g., First Year Employee Turnover Rate, Training Course Adoption Rate).

Using Human Resources Metrics to Manage Department Performance

Human resources departments must effectively attract and retain talent while ensuring that the company adheres to internal and external regulations regarding employee conduct, workplace relations and safety. The HR department has multiple customers. They work with employees to ensure that fringe benefits, payroll and workplace conditions meet the established standards. The HR team must also satisfy hiring requirements from business unit leadership (e.g., “I need good people, now!”). HR KPIs should be monitored to measure each aspect of HR operations, and ensure effective customer service.

Top 5 Human Resources KPIs for Hiring Managers

The majority of HR staff is typically concentrated within the recruiting and hiring function, unless the company aggressively uses a third-party agency to attract and screen new employees. Here are 5 KPIs that hiring managers and recruiters should be on top of:

  1. 1.HR Expense as a Percentage of Revenue
  2. 2.Cost per Hire
  3. 3.Time to Fill
  4. 4.Employee Turnover Rate
  5. 5.Overall Employee Satisfaction Score
  6. 6.Opened/Closed Requisitions per Recruiter

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