7 Key Indicators of Human Resources – HR KPI [Freebies]

It is very common to speak of KPI in marketing and sales. However, human resource managers are increasing the use of these indicators on their day-to-day work. In this article, we are going to be talking about the seven key indicators that are used for monitoring HR management in your company.

What is the KPI meaning?

A Key Performance Indicator (KPI) is a metric that measures the performance of a particular activity or process. The objective is for this to serve as a reference depending on the process or activity on the basis of the objective you want to achieve.

Example: open rate of your newsletter: The % of individuals who open your newsletter will determine the relevance and quality of the content that you sent. Monitoring the open rate of each newsletter you send can help you evaluate the effectiveness of your posts depending on the goal you want to achieve.

Characteristics of a KPI

  • Concrete: The KPI should be tangible and it should have a specific goal.
  • Mesurable: If you cannot measure the KPI, it isn’t a KPI.
  • Reachable: Stay realistic when defining KPI that will determine your success.
  • Relevant: Monitor only the things that really matter, don’t waste time with indicators that do not contribute anything to your company.

What are KPI reports?

Nowadays, more organisations are unintentionally producing loads and loads of data. Some of the data could be crucial for the business and analysing this data to measure productivity, notice certain trends or identify what the business need to improve, is really important. However, its possible some data is unuseful and irrelevant for the business due to the fact it’s collected automatically.

KPI reports helps present a visual representation of data, making it easier and quicker to analyse, instead of searching through loads of sheets of paper that can easily get lost. Factorial’s free HR software includes a reports and analytics feature, so all your reports are located in one place. This means all your data is summarised and you can manage information at your fingertips, speeding up the process and refining data collection.

The most important KPI examples in Human Resources

Retention of talent

Retention of talent is a KPI that indicates the job stability of a company. This allows you to learn about the average employee retention in the company. It is also linked to other factors such as the remuneration or the labor climate. In addition to the cost of losing an employee, the loss of talent will force you to spend time and money to recruit a new individual. An index of high staff turnover implies high costs for the employer. The rate of talent retention is calculated by comparing the number of workers who joined the company in a specific period vs. those who stayed during the same period.

Duration in the position

Many employees losses are closely related to the time that they keep in the same position. If they feel they won’t be promoted, many employees tend to look for new opportunities outside of the company. You can calculate the average time it takes for an employee to ascend by counting the number of months it takes each employee with the same charge and dividing the result by the total number of employees in the company.


Measure the absences of employees  due to delays, sick leave or excused or unexcused absences. This indicator can help predict the numbers you could be expecting. Based on the average value of the hour worked the impact of absenteeism in the company’s costs can be quantified.

Average time for recruitment

Average time for recruitment measures the time between the announcement of an employee who is leaving the company and another candidate is chosen and selected to replace him. It is possible to optimise the average time of each new hiring but be careful, many factors may be included here.

hr banner

Education and training

Courses for employees have a direct impact on the company activity. This HR KPI is meant to help boost the productivity levels of each employee. It does this by creating specific strategies to increase loyalty and satisfaction levels that employees feel when working with the company.

Average time to achieve goals

This KPI is going to measure the efficiency of your workforce. It does this to see how long it takes for them to accomplish certain tasks and goals that have been set for their position in the company.

Accidents in the workplace

Being able to measure the number of accidents in the workplace is going to be extremely important and useful in order to avoid future issues.

Download People Analytics eBook to analyse your HR KPIs

Infographics- HR KPI metrics

HR kpis infography

✅Download our HR KPI template for FREE!

Free HR Software

Do you need a free HR software to help you save time on your tasks? Our human resources reports and analytics feature generates personalised reports from data stored on your Factorial account and our HR and analytics panel creates a customised space to manage all the reports. Also included is our automatically generated organisational chart and our time-off reports, enabling you to track your employees time-off. You can also manage your companies time and attendance data. You can do this by creating personalised reports regarding your employees time tracking, enabling you to make better decisions. All the while Factorial can guarantee that your data will always be protected. This is thanks to a powerful encryption system and single access for each user.

🎉Register with Factorial today and start your free trial!

This post is also available in: Español Svenska Nederlands Italiano Deutsch Mexican

Leave a Comment