Knowing whether something works or not is a pretty basic piece of information, isn’t it? In any organization it is necessary to know whether what is being done is yielding positive or negative results. But, one aspect that not everyone takes into account and that is tremendously important if you want to boost the company’s growth, is the ability to detect points for improvement in each department, team, action, etc.… And for this, it is essential to have a clear understanding of the most important KPIs for each area. And here, of course, we want to show you the main Human Resources KPIs. Pay attention, because starting today you will be able to get the most out of your equipment!
But first... what is a KPI?
A KPI is an indicator that will help you measure and evaluate the actions you consider key to your strategy. KPI is an acronym for Key Performance Indicator. With their help, we can detect negative or improvement points, as well as successes and strengths.
If we refer to Human Resources KPIs, we are talking about indicators that refer to all those actions that encompass talent management. In this sense, we can measure the efficiency of selection processes, the adaptation time of new recruits, talent retention, absences… The list is as long as you consider it can be, depending on the actions that are key to achieving your objectives.
How to make a Human Resources KPI?
To establish each HR KIP, you need to have 4 clear points:
- Unit of measurement. Whether it is a number, an amount of money, a percentage… we must be able to measure what we want to analyze.
- Objective. Each unit of measurement must be linked to an objective. If it is a percentage, the target could be “to achieve 5% annual growth”.
- Source. Where are we going to get the information from? For each of the objectives, we will need a series of data that must be available to us.
- Frequency. How often are we going to review the KPIs? Monthly, semi-annually, annually… A review periodicity should be established to maintain clear deadlines.
Human Resources KPI
KPIs must be aligned with both departmental objectives and the company’s overall objectives. The HR department must be clear about the objectives to be achieved, as well as the KPIs that will be key to their respective achievements.
Here is a list of the main HR KPIs that you can implement in your strategy to get the most out of your team:
- Employee satisfaction level
- Turnover rate
- Absenteeism rate
- Average contracting time
- Cost of contracting
- Recruitment conversion rate
- Occupational accident rate
- Cost per contract
- Average contracting time
- Number of new hires
- Abandonment rate
- Retention rate
- Average time spent in the company
- Absenteeism rate
- Competitive wage ratio
- Satisfaction with incentives
- Internal promotion index
- Unsuccessful recruitments in X days
- Number of dropouts in the first year
- Employee productivity
- Number of overtime hours
- Employee satisfaction index
What do you think would be the best HR KPIs for your company? Are there any that you are already using? Leave us a comment to let us know about your experience. We are listening!
Try TalentFY in a Live Demo
Try our recruiting platform without compromise.
And if it doesn’t work for you, YOU DON’T PAY No small print.
Join our News
Subscribe and receive our most exclusive content and news every month
directly in your inbox.
