Tips for Employers

8 Key HR KPIs to Track
for Improved Business Performance

May 23, 2024


Delta International

HR, KPIs, Improved, Business, Performance

8 Key HR KPIs to Track for Improved Business Performance

What are HR KPIs?

HR KPIs (key performance indicators) are metrics that measure the effectiveness of HR initiatives. They can be used to track employee engagement, productivity, turnover, and other HR-related metrics. HR KPIs help HR professionals identify areas where they need to improve and track the progress of their initiatives.

Examples of HR KPIs

Employee Engagement

  • Number of employees who participated in the annual employee engagement survey
  • Net Promoter Score (NPS) for employees
  • Employee turnover rate


  • Number of sales per employee
  • Average revenue per employee
  • Cost per hire


  • Voluntary turnover rate
  • Involuntary turnover rate


  • Time to hire
  • Cost per hire
  • Hire-to-stay rate

HR KPIs can be tracked using a variety of methods, including surveys, performance metrics, and analytics. It is important to choose the right KPIs for your organization and to track them consistently over time. This will allow you to identify trends and make informed decisions about your HR initiatives.

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Why are HR KPIs Important?

HR KPIs are important for several reasons. First, they help HR professionals measure the effectiveness of their initiatives. By tracking key metrics, HR professionals can see what is working and what is not and make adjustments accordingly. Second, HR KPIs help HR professionals identify areas where they need to improve. For example, if employee turnover is high, HR professionals can use KPIs to identify the root causes and develop strategies to address them. Third, HR KPIs help HR professionals communicate the value of their work to senior management. By showing how HR initiatives are contributing to the organization's bottom line, HR professionals can help ensure that they have the resources they need to be successful.

What HR KPIs are Important to Track?

There are many different HR KPIs that can be tracked, but some of the most important include:

  • Employee engagement
  • Employee retention
  • Performance management
  • Recruitment and talent acquisition
  • Employee satisfaction
  • Cost per hire
  • Time to hire
  • Turnover rate

These KPIs help HR professionals measure the effectiveness of their initiatives and make informed decisions about how to improve their HR department.

Improving HR KPIs

There are several steps HR professionals can take to improve their KPIs:

  • Set clear and achievable goals
  • Collect accurate and timely data
  • Use data-driven decision-making
  • Implement changes to improve performance
  • Monitor and evaluate progress

By following these steps, HR professionals can improve their KPIs and ensure that their HR initiatives are effective.

Challenges of Tracking HR KPIs

There are several challenges associated with tracking HR KPIs, including:

  • Lack of Data: Many organizations do not have the data they need to track HR KPIs effectively. This can be due to a number of factors, such as siloed data systems, a lack of standardization in data collection, or a lack of resources to collect and analyze data.
  • Lack of Expertise: Tracking HR KPIs requires a certain level of expertise in data collection, analysis, and reporting. Many organizations do not have the in-house expertise to do this effectively.
  • Resistance to Change: Tracking HR KPIs can require changes to the way HR departments operate. This can be met with resistance from employees who are reluctant to change.
  • Cost: Tracking HR KPIs can be expensive, especially if the organization needs to invest in new software or hire external consultants.

Despite these challenges, tracking HR KPIs is essential for ensuring that HR initiatives are effective and that the organization is meeting its goals. By overcoming the challenges associated with tracking HR KPIs, organizations can gain valuable insights into their workforce and make informed decisions about how to improve their HR practices.

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In this article, we have discussed the importance of HR KPIs and how to track them. We have also provided a list of key HR KPIs that you can track to measure the effectiveness of your HR initiatives.

It is important to note that the specific HR KPIs that you track will vary depending on your organization's unique needs and goals. However, the KPIs discussed in this article can provide you with a good starting point.

By tracking your HR KPIs, you can gain valuable insights into the performance of your HR department and identify areas where you can improve. This information can help you make better decisions about your HR strategy and ensure that your organization is effectively meeting its HR goals.

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