14 HR Metrics Examples - Analytics in HR

14 HR Metrics Examples

This blog provides 14 important HR metrics examples. HR metrics are indicators that enable HR to track and measure performance on different aspects and ultimately predict...

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This blog provides 14 important HR metrics examples. HR metrics are indicators that enable HR to track and measure performance on different aspects and ultimately predict the future. However, not all HR metrics are created equal. In this blog we will provide some of the most valuable HR metrics examples.

Even though this list provides some of the most essential HR metrics, you might come up with a great number 15! You are welcome to suggest additional HR metrics in the comments below.

HR metrics examples in recruitment

1. Time to hire (avg time per hire)
An important metric for recruitment is the ‘time to hire’. This shows the efficiency of the recruitment process and provides insight into the difficulty of filling a certain job position.

2. Cost per hire (total cost of hiring/the number of new hires)
Like the time to hire, the ‘cost per hire’ metric shows how much it costs the company to hire new employees. This also serves as an indicator of the efficiency of the recruitment process.

3. Early turnover (percentage of recruits leaving in the first year)
This is arguably the most important metric to determine hiring success in a company.
This early leaver metric indicates whether there is a mismatch between the person and the company or between the person and his/her position. Early turnover is also very expensive. It usually takes 6 to 12 months before employees have fully learned the ropes and reach their ‘Optimum Productivity Level’. According to a 2014 Oxford Economics report, the lost output cost over this period averages £30,000 ($43,700) for new hires.

4. Time till promotion (avg time in months until internal promotion)
This rather straightforward metric is useful in explaining why your high potentials leave.

HR metrics examples related to revenue

5. Revenue per employee (revenue/total number of employees)
This metric shows the efficiency of the organization as a whole. The ‘revenue per employee’ metric is an indicator of the quality of hired employees. Check this Business insider article to view how the top 12 tech companies in the world score on this metric.

6. Performance and potential (the 9-box grid)
The 9-box grid appears when measuring and mapping both an individual’s performance and potential in three levels. This model shows which employees are underperformers, valued specialists, emerging potentials or top talents. This metrics is great for differentiating between, for example, wanted and unwanted turnover.

To read more about performance metrics, check out this comprehensive list with performance metrics, including Net Promoter Score, management by objectives, number of errors, 360-degree feedback, forced ranking, etc.

7. Billable hours per employee
This is the most concrete example of a performance measure, and it is especially relevant in professional service firms (e.g. law and consultancy firms). Relating this kind of performance to employee engagement or other input metrics makes for an interesting analysis. Benchmarking this metrics between different departments and managers/partners can also provide valuable insights.

8. Engagement rating
An engaged workforce is a productive workforce. Engagement might be the most important ‘soft’ HR outcome. People who like their job and who are proud of their company are generally more engaged, even if the work environment is stressful and pressure is high. Engaged employees perform better and are more likely to perceive stress as an exciting challenge, not as a burden. Additionally, team engagement is an important metric for a team manager’s success.

Other HR metrics examples

9. Cost of HR per employee (e.g. $ 600)
This metric shows the cost efficiency of HR expressed in dollars.

10. Ratio of HR professionals to employees (e.g. 1:60)
Another measure that shows HR’s cost efficiency. An organization with fully developed analytical capabilities should be able to have a smaller number of HR professionals do more.

11. Ratio of HR business partners per employee (e.g. 1:80)
A similar metric to the previous one. Again, a set of highly developed analytics capabilities will enable HR to measure and predict the impact of HR policies. This will enable HR to be more efficient and reduce the number of business partners.

12. Turnover (number of leavers/total population in the organization)
This metric shows how many workers leave the company in a given year. When combined with, for instance, a performance metric, the ‘turnover’ metric can track the difference in attrition in high and low performers. Preferably you would like to see low performers leave and high performers stay. This metric also provides HR business partners with a great amount of information about the departments and functions in which employees feel at home, and where in the organization they do not want to work. Additionally, attrition could be a key metric in measuring a manager’s success.

13. Effectiveness of HR software
This is a more complex metric. Effectiveness of, for instance, learning and development software are measured in the number of active users, average time on the platform, session length, total time on platform per user per month, screen flow, and software retention. These metrics enable HR to determine what works for the employees and what does not.

14. Absenteeism (absence percentage)
Like turnover, absenteeism is also a strong indicator of dissatisfaction and a predictor of turnover. This metric can give information to prevent this kind of leave, as long-term absence can be very costly. Again, differences between individual managers and departments are very interesting indicators of (potential) problems and bottlenecks.

As you can see there are a lot of different examples of HR metrics. While some metrics are easier to implement than others, all of them provide insights into the workforce and HR. Combining these insights will prove vital for making substantiated decisions with proven impact.

So, what are HR metrics exactly?

Before you start to work with HR metrics, it’s important to make sure you understand how metrics can work for you. What are HR metrics?

Human Resource metrics are measurements that help you to track key areas in HR data. The most important areas are listed below. In this list of HR metrics we included the key HR metrics examples associated with those areas.

  1. Organizational performance
    • Turnover percentages
    • % of regretted loss
    • Statistics on why personnel is leaving
    • Absence percentages and behavior
    • Recruitment (time to fill, number of applicants, recruitment cost)
  2. HR operations
    • HR efficiency (e.g. time to resolving HR self-service tickets)
    • HR effectiveness (e.g. perception of HR service quality)
  3. Process optimization
  4. Process optimization helps to analyze how we do what we do in Human Resource Management. The HR metrics and analytics in this area focus on changes of HR efficiency and effectiveness over time. These HR metrics and analytics are then used to re-engineer and reinvent what is happening in HR. This helps to optimize the Human Resource delivery process.

The latter is next level for a lot of organizations as this area is barely prevalent in most organizations. It therefore represents the highest level of HR metrics and analytics.

To learn more about metrics and about how you can turn your HR data into a strategic powerhouse, check out our eBook on the Basic Principles of HR analytics.


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1 comment

  1. Gerald Chekata Reply

    This is very informative and timely indeed. No more second guessing or groping in the dark for HR practioner.
    Thanks and keep up the good work.

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