10 HR KPIs to be an Indicator of Success


As a worker, the key performance indicator or KPI is a benchmark for assessing the results of his work. Those who work in the HR field also have some important KPIs to consider.

Key performance indicators for the HR field are closely related to the company’s strategy.

Then, what are the commonly used KPIs for this department? Here wannawishyou give some lists. Read the article, yes.

KPIs for HR

1. Turnover rate

The first KPI used for the HR department is the turnover rate.

The turnover rate refers to the percentage of employees who leave the company within a certain period.

If the turnover rate is high, it can indicate that employees are dissatisfied with the company where they work.

Based on this metric, HRD can adjust compensation, work environment, and company culture to make employees feel at home.

2. Retention of talent

The following KPI commonly used for HRD is the retention of talent. This metric is closely related to the turnover rate.

The difference is that this KPI measures the number of employees the company can retain.

These KPIs also provide essential information for workforce planning and recruitment.

Not only that, but retention of talent also provides insight into the level of remuneration.

Thus, from this KPI, the HR department must investigate how salary, leave regulations, or the work environment affects the retention of employees.

3. Duration in position

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Calculating the average duration of an employee in a position is also one of the main KPIs for an HRD.

Through this KPI, HR can find out whether the opportunity to develop in a company is limited or not.

If yes, then HR can discuss it with the management department to resolve the issue.

4. Dismissal rate

The dismissal rate calculates the rate of termination of employment by the company. Thus, this KPI is very important to be used in the HRD field.

This metric can be affected by several factors such as;

  • employment contract
  • resign  because you can’t work
  • pension

In addition, a forced layoff, such as bad performance or behavior, will harm the company in terms of finances and time.

So, from this KPI,  human resources can investigate whether the recruitment and onboarding practices align with the company’s values.

5. Absence rate

Launching Indeed, one of the KPIs that HRD commonly uses is absenteeism.

The absenteeism level measures employees’ engagement within the company and how often they come to work.

This indicator also provides information on the level of motivation of employees to complete their work and contribute to the achievement of company goals.

For example, workers will tend to take time off when they feel unmotivated to work or cannot attend.

The more leave is taken, the higher the absenteeism rate.

From this information, HRD can find ways to reduce absenteeism.

Such as by discussing WFH regulations if unable to attend the office or building a positive work environment so that employees feel motivated to work.

6. Overtime

The following KPI commonly used for HRD is overtime. This metric is used to determine the trend of employees still working after hours.

Overtime is closely related to the KPI for absenteeism. Because an employee who often does over time will tend to take time off to rest.

As overtime rates increase, this information can be used by HRD to identify things like;

  • the workload  that is getting heavier
  • there are deficiencies in the company’s work processes
  • shortage of personnel involved in the  workflow

7. Cost per hire

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According to Factorial, this HRD KPI measures the number of costs invested for each employee.

These costs include advertising vacancies, reviewing and selecting candidates, and conducting interviews.

Not only that, the cost of employee training and materials is included in the price per hire.

With this metric, HRD can assist other departments in managing their budgets when recruiting.

8. Salary competitiveness ratio

Adapting Clickup, this KPI for HR is used to measure how competitive the salary offered by the company is compared to competitors for similar positions.

This is because one of the HRD’s tasks is to recruit talented candidates for the company.

Of course, the higher the salary competitiveness ratio, the better the company will be in attracting talented candidates.

9. Employee satisfaction

One of the duties of HRD is to ensure that every employee is satisfied working in his company.

Thus, employee satisfaction is one of the important KPIs for HRD.

This is because the more satisfied employees are, their desire to stay in the company increases.

Of course, this also reduces the company’s turnover rate.

HRD can determine employee satisfaction levels by conducting a survey of them.

This survey must be carried out regularly so that employee complaints can be resolved as soon as possible.

10. Net promoter score

This KPI commonly used by HRD provides insight into how many employees will recommend the company to others as an ideal workplace.

Just like employee satisfaction, one way to find out is through surveys or interviews.

From the information obtained, HRD can find out what is lacking in the work environment and improve it.

That way,  the company‘s turnover rate will be able to go down.

Those are some KPIs commonly used to measure the company’s HR performance. In essence, ensure the KPIs created are compatible with each other and actionable.

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Alok kumar is an Indian content creator who is currently working with many world wide known bloggers to help theme deliver the very useful and relevant content with simplest ways possible to their visitors.


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