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In the past decade, human resources (HR) and human capital has evolved from a being a solely
service-oriented benefits management department to a more strategic organizational asset.
Managers seem to recognize that it is now (more than ever) vital to have the right team
executing company strategy. Well-known organizations and enterprises from all over the world
regularly discuss how important it is to hire and retain the right talent, and this ability is often
regarded as one of the greatest predictors of organizational success.
While many organizations recognize this shift in thought, not all of them are correctly
measuring success with updated HR key performance indicators (KPIs). These strategic tools
can help you understand whether youre accomplishing your HR objectives in a way that is in
line with your strategy. In our opinion, managers need to be thinking about both traditional HR
measureslike sick days, absenteeism, and employee satisfactionalongside strategic human
capital measureslike employee performance and culture. Take a look at 33 of our favorite
human capital KPIs that you may want to consider implementing.
Want to take the list with you?
Free download: The HR KPI Library
Note: Were not suggesting nor advocating for you to begin measuring all of these KPIs. Rather,
you can use this extensive list to get an idea of what like-minded organizations may be looking
at, research KPIs from other lists, and then decide upon the critical few KPIs that are in line
with your unique strategy.
Compensation KPIs
1. Percentage of Cost of Workforce: The cost of the workforce as compared to all costs can
be measured by summing all salaries and dividing by the total company costs within a
given period.
3. Human Capital Value Added (HCVA): Used to determine how profitable the average
worker in an organization is. Can be determined by taking all non-employee related costs
away from the revenue and dividing the result by the number of full-time employees.
Culture KPIs
5. Employee Satisfaction Index: This is a key metric underlying talent retention. Using a
company-wide survey can be helpful in gauging employee happiness.
6. Number of Employee Satisfaction Surveys: Helps understand how much effort is being
put into maintaining and improving employee happiness.
8. Percentage of Vacation Days Used: Helps show the company attitude toward a healthy
work-life balance. Determined by observing the number of vacation days used as
compared to those unused.
Employment KPIs
9. Absenteeism Rate: Gives perspective on the amount of labor and productivity lost due to
sickness and otherwise unpredicted leave. Formula: (Total number of lost workdays due to
absence) / (Number of available workdays in an organization) = (Absenteeism rate)
10. Number of Full-Time Employees: Keeps tabs on the growth of the company workforce
over time.
11. Number of Contractors: Examines the growth in associated workers over time. Can be
compared to the number of full-time workers to better understand workforce trends.
12. Average Tenure: The average length of time that an employee spends with the company
helps determine employee satisfaction and talent retention.
15. New Hire 90-Day Failure Rate: Helps determine how successful the talent acquisition
process is at finding the right fit for jobs.
16. First Year Voluntary Termination Rate: Reflects on how welcoming the company is to
new hires. A high percentage suggests that the right people are being hired, but not
embraced.
17. Average Time to Fill a Job Vacancy: Tracks how efficient the hiring process is in terms of
time resources used to fill a vacant spot.
18. Hiring Process Satisfaction Rate: Provides perspective on how well the process works
from the employees perspective.
19. Cost per Hire: Acknowledges the amount of resources invested into acquiring the best
talent. Can be determined by averaging the total marketing, hiring process, and referral (if
necessary) costs per hire.
20. Effectiveness of Training: Helps the company understand how comfortable new hires feel
after their training vs. before. Typically determined through a post-training survey.
21. Training Cost per Employee: Helps to measure the amount invested in onboarding new
hires.
22. Percentage of Employees Trained: Helps a company see how quickly new hires are being
onboarded.
23. Diversity Rate: Keeps track of how successfully the organization is creating an
environment that fosters an open and accepting community.
24. Attrition Rate: Helps a company figure out how successful they are at retaining talent.
Determined by dividing the number of employees who left the company in a given period
by the average number of employees in that time period.
25. Average Time to Find a Hire: Helps track the efficiency of the hiring process.
26. Candidates Interviewed per Hire: Determined by calculating the total number of
candidates interviewed by the total number of hires in a particular hiring period.
Performance KPIs
27. Percentage of Job Candidates Who Meet Job Criteria: Helps in evaluating the
effectiveness of job postings in reaching top candidates.
28. Rate of Internal Job Hires: Shows the effectiveness of organizational talent development.
29. Rate of Internal Referral Hires: Allows managers to see the value added when current
employees help to identify and acquire talent.
30. Performance of New Hires: The performance of new hires can be compared to that of
other employees. Typically done by evaluating performance reports.
31. Employee Productivity Rate: Helps to measure workforce efficiency over time. Can be
determined by taking the total company revenue and dividing it by the total number of
employees.
Want to take this list with you? Click below to download all 33 KPIs in an Excel
document.
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