Use HR Metrics to track and improve your performance in 2025
Barry Ackerman, SHRM-CP
CEO Supportive HR | Outsourced HR Dept. | Employee Handbook Specialist | #HRGuy
As an HR consultant, we know how powerful HR can really be for 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 analyze 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:
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 organization’s specific goals and challenges, the following are some key HR metrics that are widely applicable:
HR and Management Metrics
Cost per hire:
This metric is calculated to find out how much a company spends on average to onboard a new employee. It also helps in assessing the financial efficiency of your company’s recruiting process, including costs associated with advertising, recruiter fees, interviews, background checks and onboarding. This helps with budgeting and identifying opportunities to optimize the hiring process.
Average time to hire:
Time to fill is the amount of time it takes to fill an open position. This is another key metric that gives insights into the efficiency of the recruitment process. A long time to fill can indicate potential inefficiencies in the recruitment process, a highly competitive job market, or challenges in attracting qualified candidates for specific roles.
Labor cost percentage of revenue:
Indicates the proportion of revenue spent on labor costs. This metric helps to evaluate the efficiency of labor costs relative to the revenue generated.
Labor cost percentage of total expenses:
Measures the proportion of total expenses that are attributed to labor costs. This metric provides insight into how labor costs impact overall expense management.
Revenue/profit per employee:
Measures the average revenue or profit generated by each employee. This metric provides insight into the overall employee contribution to the company's financial performance and helps in assessing productivity and efficiency.
Benefits costs per employee:
Benefit or program costs per employee is a financial metric that evaluates your company’s average investment in each employee’s benefits. It helps with budget planning and management and helps to ensure employers are offering competitive packages to their employees.
Compa-ratio:
This metric assesses the competitiveness of an employee’s compensation relative to the midpoint of a predetermined salary range based on market data.?
Absenteeism
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 organization, 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 to target interventions and manage attendance issues at a more granular level.
Employee turnover and retention
Tenure:
Tenure refers to the total amount of time an employee has worked for a company or the average amount of time that all employees have worked there. Short tenure can signal issues with employee satisfaction initiatives, and long tenure can indicate the need to implement employee succession plans.
Retention rates:
This metric measures the percentage of employees who remain with the organization over a specified period. High retention rates indicate stable and satisfied employees, contributing to organizational stability and reduced hiring costs. This metric can be customized to measure retention amongst various employee groups, such as managers and top talent.
Turnover rate:
Represents the percentage of employees who leave the organization 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 organization within a specific period. This metric helps to identify areas where employee satisfaction can be improved to reduce voluntary exits. This metric can be customized to measure retention amongst various employee groups, such as managers and top talent.?
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. This metric can be customized to measure retention amongst various employee groups, such as managers and top talent.
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 organization.
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90-day resignation rate:
Measures the percentage of new hires who voluntarily leave the organization within their first 90 days. A high rate can indicate issues with the hiring process, onboarding, or job expectations.
Employee performance
Employee productivity rate:
Assesses the amount of output or value created by an employee. This metric helps in understanding individual contributions to the organization’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
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 organization. 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 organization. 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
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 organizational 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 behavioral 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
Measures the representation and treatment of various demographic groups within the organization. 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 organization'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 organization’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 organization.
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.
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