HR Performance Indicators (HR KPIs)

An HR performance indicator (or HR KPI) is used to evaluate the effectiveness of HR processes and strategies, as well as an organization’s overall health, by measuring metrics such as employee retention, satisfaction, and absenteeism. The KPIs to track may vary depending on the organization’s objectives and priorities.

Explanation and examples

HR performance indicators help support the insights of HR professionals and recruiters with concrete data collected over time. They also enable comparative analysis across different periods.

For example, an HR manager may measure employee turnover rates for the current year and then implement action plans to reduce turnover. The effectiveness of these initiatives can later be assessed by measuring new turnover rates over a comparable period.

This data-driven approach allows HR teams to continuously adjust, refine, and optimize their strategies, helping ensure long-term organizational sustainability.

Below are a few examples of commonly used HR performance indicators:

• Turnover rate, representing the number of employee departures over a given period
• Retention rate, reflecting the number of employees who remain with the organization during a specific timeframe;
• Absenteeism rate, measuring employee absences over a given period;
• Average cost per hire, which analyzes the resources required to complete a hire;
• Employee satisfaction rate, often measured through surveys or stay interviews;
• Workplace accident rate, providing insight into the safety of the work environment.

To gain an even more precise view of organizational health, each KPI can be segmented by department, team, or role using an effective HR software.