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HR Metrics: Definition, Advantages, Examples, and What to measure

7 min read

Strategic HR is gaining popularity along with HR automation. They go hand-in-hand when it comes to building sustainable businesses around the world. HR metrics are a way to assess the functioning of several employee aspects and how smoothly they are running. 

So, what is HR metrics? 

Before I explain it, I want to tell you that to make a real impact on your organization, you need to start having relevant metrics at your workplace. For example, Performance metrics, HR metrics, and more. 

HR Metrics Meaning 

One of the main divisions in any business organization, the human resource (HR), is an integral asset towards the path of success. It helps in managing the workforce who themselves are responsible for almost everything that happens in a business. It’s a tough realization for an organization to understand that their success depends upon the performance of their employees. In a world that changes constantly, every organization needs specific HR metrics and benchmarking to make sure employees are performing at their peak. Also, all functions like payroll, attendance, timesheet management, etc., are running smoothly. These outlines are known as HR metrics.  

What do HR Metrics measure? 

HR metrics and workforce analytics work together. They measure a variety of functions at a workplace. It includes the time taken to complete jobs, quality of work, employee satisfactionemployee wellbeingemployee utilization, etc. By establishing clear HR metrics, businesses can ensure clear goals for the organization according to everyone’s requirements. 

Here’s how HR metrics help organizations 

They help the management in tracking the productivity of employees. They also identify training gaps, so support can be provided to keep the performance levels intact. Human Resource Metrics are quite beneficial in ensuring that the workers have everything they need to work towards fulfilling their goals in the organization. It leads to success for the entire business. Further, HR metrics keep workers motivated. They help in understanding the challenges employees are facing and also in solving them in time. Pulse surveys, etc., help in understanding whether employees are content with their job and facing no troubles at work.  

HR key metrics play a significant role in developing a sustainable work environment for the workforce to aid greater efficiency and productivity. 

HR Metrics Examples 

Irrespective of the size of your organization, these HR metrics will always be relevant for the success of any business. The HR metric list includes:  

Employee Satisfaction 

It shows whether employees would recommend their organization as a good place to work. Higher the rate, the happier is the workforce. 

Total Turnover Rate  

This rate calculates the number of employees who leave the company divided by the total number of employees, within a given time. Usually indicated as a percentage.  

Voluntary Turnover Rate  

This rate shows the turnover rate including just the employees who left the organization voluntarily. 


The total number of employees in the organization or a specific department. 


This metric describes different characteristics of the workforce. It includes age, gender, education level, length of service in the company, etc.  

Time to Hire  

The total days it took to hire a job applicant after listing the job out on platforms and the company website. A key metric in the list of HR metrics for recruitment.  

Talent Turnover Rate  

This metric depicts the turnover rate among the top performers and high potential employees. 

Retention Rate  

Retention rate is a  key metric. It shows the number of employees who stayed in the organization over a period divided by the total number of employees. It is considered a key indicator of organizational culture.  

Acceptance Rate  

It shows how many candidates have accepted the offer in comparison to the total number of offer letters extended by the organization. 

Cost per Hire  

For any company, it is the average cost of hiring a new employee. 

Absence Rate  

This rate is the number of days an employee is absent from work without any prior notice. It does not include already approved leave for a while.  

Overtime Hours  

Each employee has fixed work hours at their job for which they get paid. Overtime is the number of extra hours worked by employees in a given period. 

Revenue per Employee  

The ratio of the total amount of revenue generated in a cycle is divided by the total number of employees in the organization.  

Training Expenses per Employee  

At every organization, employees require training and support. Here is a metric that measures the total cost of the organization’s training programs, divided by the total number of participating employees. 

Training Completion Rate  

It is the number of employees who complete every module of a training program. It is often derived as a percentage. 


There are more HR metrics apart from the ones mentioned above in this blog. Their importance is unquestioned, especially if you want to make data-driven decisions backed by evidence. All of it is for the benefit of your employees and the company. The right metrics depend on factors such as the size of the workforce, budget, time, resources, etc. Whatever you may have, collecting data manually isn’t a fun task. Leave that to an able HRMS like Keka. Get a centralized HR metrics dashboard and focus purely on making strategic decisions. 

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    Meet the author

    Keka Editorial Team

    A bunch of inspired, creative and ambitious youngsters- that’s Keka’s editorial team for you. We have a thirst to learn new subjects and curate diverse pieces for our readers. Our deep understanding and knowledge of Human Resources has enabled us to answer almost every question pertaining to this department. If not seen finding ways to simplify the HR world, they can be found striking conversations with anyone and everyone , petting dogs, obsessing over gadgets, or baking cakes.


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