What Are HR KPIs And How To Use Them To Build A Thriving Workforce

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Integrate your CRM with other tools

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How to connect your integrations to your CRM platform?

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Techbit is the next-gen CRM platform designed for modern sales teams

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Why using the right CRM can make your team close more sales?

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Did you know that companies with highly engaged employees have higher earnings per share? Effective workforce management is crucial for organizational success, and HR KPIs provide the insights to achieve it.

Do you ever feel like you're constantly battling high turnover, low engagement, and a skills gap that widens year after year? These are just a few of the challenges HR departments face. But what if there was a way to transform your people strategy and build a thriving workforce?

This article introduces you to Human Resource Key Performance Indicators or HR KPIs. By implementing these HR KPIs, you can identify trends, diagnose problems, and measure the impact of your HR programs.

HR KPIs empower you to make data-driven decisions that build a robust, engaged workforce. It translates to a more productive and successful organization, giving you a competitive edge. Ready to build a high-performing team? Let's dive deeper into HR KPIs!

Recommended Reading: HR Management Dashboard

What Are HR KPIs?

HR KPIs are quantifiable measurements that track the effectiveness of your HR initiatives. They help HR managers and business leaders understand how well HR supports the organization's goals. By monitoring HR KPIs, you can identify areas for improvement, demonstrate the value of HR programs, and make data-driven decisions about your workforce.

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Human Resource Management

Top HR KPIs to Track

Here's a breakdown of some of the most crucial HR KPIs to consider, categorized by their focus:

Acquisition (Attracting and Hiring New Talent):

  • Time to hire: This metric tracks how long it takes to fill an open position, on average. It includes the entire recruitment process, from advertising the job to onboarding the new hire. A shorter time to hire indicates a more efficient recruiting process. 
    Several factors can impact the time to hire, such as the complexity of the role, the availability of qualified candidates, and the effectiveness of your recruiting strategies.
  • Cost per hire: This metric calculates the total cost of filling a position. It includes expenses such as advertising, recruiting fees, and onboarding costs. A lower cost per hire suggests a more cost-effective recruiting strategy. You can reduce hiring costs by developing strong employer branding to attract qualified candidates, streamlining your recruiting process to time and resources spent, and leveraging technology to automate tasks.
  • Quality of hire: This metric assesses how well new hires perform. It can be measured through metrics like performance reviews, productivity, or customer satisfaction ratings (if applicable). A high quality of hire means that new hires meet expectations and contribute to the organization's success. 

Here are some ways to improve your quality of hire: develop a clear job description that accurately reflects the skills and experience required for the role, use targeted advertising to reach qualified candidates, and conduct a thorough interview process that includes skills assessments.

Retention (Keeping Top Talent Engaged and Motivated):

  • Employee turnover rate: This metric tracks the percentage of employees who leave the company within a specific period, typically a year. A low turnover rate signifies a more stable workforce. Employee turnover can be costly and disruptive, so it's crucial to track it and take steps to reduce it. 

To reduce employee turnover, offer competitive salaries and benefits, create a positive work environment, provide opportunities for growth and development, and invest in employee recognition programs.

  • Retention rate: The opposite of turnover rate, the retention rate is the percentage of employees who stay with the company during a specific period. A high retention rate indicates that employees are satisfied with their jobs and are committed to the organization.
  • Employee engagement rate: Employee engagement rate refers to an employee's commitment level and dedication to their work and the organization. Highly engaged employees are more productive, satisfied, and less likely to leave the company. 

Several factors can contribute to employee engagement, such as a clear understanding of how their work contributes to the organization's goals, feeling valued and appreciated, and having opportunities to learn and grow.

Performance & Development (Enhancing Skills and Capabilities)

  • Training effectiveness: This metric evaluates how well training programs improve employee skills and knowledge. There are several ways to measure training effectiveness, such as pre- and post-training skills assessments, surveys of participants, or tracking changes in employee performance. You can track program effectiveness to ensure your training programs meet their objectives and provide a return on investment.
  • Performance appraisals: Performance appraisals are formal evaluations of an employee's performance against set goals and expectations. They are typically conducted annually or semi-annually. Performance appraisals help identify areas where employees need improvement, as well as areas where they are excelling. They can also be helpful to set goals for future performance.
  • Promotion rate: The promotion rate is the percentage of employees promoted internally yearly. A healthy promotion rate indicates opportunities for growth and development within the organization. It can motivate employees and keep them engaged.

Well-Being & Compliance (Fostering a Positive Work Environment)

  • Absenteeism rate: The absenteeism rate tracks the percentage of time employees are absent from work. A low absenteeism rate suggests a healthy and engaged workforce. Many factors can contribute to absenteeism, such as illness, injury, personal leave, and stress. You can identify potential problems and take steps to address them by tracking absenteeism rates.


  • Employee satisfaction: Employee satisfaction measures how content employees are with their jobs, work environment, and company culture. Positive outcomes, such as lower turnover, higher productivity, and improved customer service, are linked to high employee satisfaction. There are several ways to measure employee satisfaction, such as surveys, focus groups, and exit interviews.


Choosing the Right HR KPIs:

While the KPIs mentioned above are valuable, it's important to remember that the specific HR KPIs you track will depend on your organization's unique goals and priorities. Here are some factors to consider when selecting HR KPIs:

  • Strategic goals: Align your HR KPIs with your organization's strategic objectives. For example, if a key goal is to increase sales, you should track KPIs related to the effectiveness of your sales training program.
  • Industry benchmarks: Research industry benchmarks for HR KPIs to understand how your organization compares to others in your field. This can help you set realistic targets and identify areas for improvement.
  • Data availability: Consider the data that is readily available to you. It's no use selecting a KPI you can't measure due to data limitations. Ensure you have the necessary systems and processes to collect and analyze the required data.
  • Organizational culture: Your HR KPIs should align with your company's values and culture. For example, if employee well-being is a core value, you should prioritize metrics like employee satisfaction and engagement.

Putting HR KPIs into Action

By tracking HR KPIs, you can gain valuable insights into the health of your workforce. However, the true power of HR KPIs lies in using them to take action. Here are some examples of how HR KPIs improve your strategy:

  • Low training effectiveness: Your training program on a new customer relationship management (CRM) system shows low effectiveness through pre-and post-training assessments. It might indicate the training content is too complex or the delivery method isn't engaging. You can address this by revamping the training program to be more modular and interactive or offering different training formats to cater to various learning styles. Learn more on Guide to Customer Relationship Management (CRM) Dashboard
  • High absenteeism rate in a specific department: This could be because of department-specific stressors, health and safety concerns, or a lack of work-life balance. You can address this by conducting surveys or focus groups within the department to understand the root cause of the absenteeism. Once you identify the issue, you can develop targeted solutions, such as implementing stress management programs, improving workplace ergonomics, or offering flexible work arrangements.
  • Low employee engagement: If your employee engagement rate is low, it could be a sign of poor communication, lack of recognition, or limited growth opportunities. You can address this by implementing initiatives like regular town hall meetings, employee recognition programs, and career development plans.

By using HR KPIs to diagnose problems and then implementing targeted solutions, HR can play a crucial role in creating a positive and productive work environment for all employees.

Building an HR Dashboard with DataBrain

DataBrain is a business intelligence (BI) tool that lets you create a customized HR dashboard to monitor HR KPIs performance. It serves as a central hub for all your HR data, offering a clear and comprehensive picture of your workforce at a glance. 

Tailoring Your HR Dashboard:

DataBrain's flexibility allows you to design a dashboard that aligns perfectly with your organization's distinctive needs. Here are some key elements to consider:

  • KPIs: Select the most relevant HR KPIs based on your priorities. You can include a mix of metrics across different focus areas, such as acquisition, retention, performance, and well-being.
  • Visualizations: Leverage DataBrain's various chart and graph options to represent your KPI data effectively. Consider using
    • Bar charts: Ideal for comparing KPIs across different categories, like time to hire by department.
    • Line charts: Excellent for tracking trends, such as employee turnover rate over a year.
    • Pie charts: Useful for illustrating the composition of a whole, like the breakdown of reasons for employee turnover.
  • Drill-down Capabilities: Enable users to explore specific data points in greater detail. For example, clicking on a bar in a chart representing high turnover in a particular department could reveal details about the reasons for those departures.
  • Customization: DataBrain allows you to personalize your dashboard as you see fit. You can drag and drop various metrics anywhere in the dashboard to create the layout that perfectly suits your needs. You can quickly change colors to match your brand identity, enable tooltips for on-hover information, and easily rename elements for better clarity.

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Benefits of an HR Dashboard in Databrain:

  • Enhanced Decision-Making: By visualizing your HR data, the dashboard allows for quick identification of trends, patterns, and areas requiring attention. It empowers HR leaders to make data-driven decisions that support strategic workforce initiatives.
  • Improved Communication: The dashboard becomes a powerful communication tool. You can easily share key HR metrics with leadership teams and stakeholders, fostering transparency and alignment.
  • Actionable Insights: The ability to drill down into specific data points allows for deeper analysis, helping HR professionals identify the root causes of issues and develop targeted solutions.
  • Increased Accountability: Tracking KPIs over time cultivates a culture of accountability within the HR department. Progress toward established goals is readily apparent, allowing adjustments and course corrections.

By leveraging DataBrain's capabilities, HR departments can transform data into actionable insights, ultimately supporting the development of an engaged workforce.


HR KPIs are more than just numbers on a page. They're essential tools for effectively managing and developing your organization's most valuable asset: its people. By tracking the right metrics, diagnosing issues, and taking targeted action, you can build a talent strategy that attracts and retains top talent, fosters engagement, and drives business success. Implement HR KPIs today and unlock the power of a data-driven approach to workforce management—the key to gaining a competitive edge!

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Human Resource Management

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