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11 key HR metrics you should be measuring

10 min read
HR metrics

One of the key roles of HR is to continuously monitor the way an organization is running to ensure thatall processes and resources are performing as efficiently and productively as possible, especially in terms of a company’s employees. The best way to do this is by tracking and analyzing the rightHR metrics. When managed effectively, the right metrics can help you better manage your talent so that you can build a workforce that is happy, productive, and engaged. And that’s not all. According to Deloitte,data-driven people analytics can also help you enhance your organizational decisions and drive continuous improvementin your business.

In this guide, we are going to discusswhich HR metrics will help you obtain a clearer picture of the reality of your business. That way, you can make the necessary adjustments to your talent management processes and help your business grow and develop.

Importance of People Analytics 

People analytics refers to the collection and analysis of all your HR metrics. The aim is to collect employee data in order tobetter understand your workforce and improve the way you manage and engage with your employees. Common metrics include time to hire, revenue per employee, job satisfaction, and employee growth rate. Tracking additional metrics such as training efficiency and revenue per employee can also help youquantify the return on the investment you make in your workforce

Whichever HR metrics you choose to track, your people analytics strategy should havethree main objectives:

  • Help you make data-driven strategic decisions about your business. 
  • Enable your HR leaders to access valuable insights into your workforce so that you can improve your HR processes and activities.
  • Provide you with benchmarks to measure your progress towards meeting your defined business objectives. 

So, why are people analytics so important? What are the specific benefits of regularly tracking and analyzing your core HR metrics?

Put simply, tracking the right people analyticshelps you make better decisions about your organization. It’s aboutunderstanding the people who work for you and how they impact your business operations. By analyzing KPIs relating to your staff you can measure the value that your policies and procedures are providing and identify areas for improvement. And this, in turn, helps youimprove the employee experience, boost performance, satisfaction, and engagement, and achieve your goals as a business

11 Valuable People Analytics HR Metrics 

There are a number of different KPIs that you might need to track depending on the nature of your business. However, generally speaking, there are11 specific HR metrics that all businesses should be monitoring on a regular basis

Thesecore HR metricshelp you ensure that your organization is running asefficiently and profitablyas possible:

  • eNPS
  • Time to hire
  • Diversity
  • Labor turnover
  • Job satisfaction
  • Overtime expense
  • Training efficiency
  • Manager effectiveness
  • Quality of work
  • Employee growth rate
  • Revenue per employee

Let’s take a look at these valuable people analytics in a bit more detail.


The Employee Net Promoter Score (eNPS) is a valuable HR metric used tocalculate the level of employee engagement in your company. It can help you determinehow happy your employees are and how committed they are to your organization. If you measure the metric over time, you can also getvaluable insights into the impact of any organizational changesyou may have implemented. You can then use the feedback you collect to develop strategies toimprove your employee experience and boost engagement.

The process for calculating your eNPS is simple. You just have to share asurveywith your employees consisting of one key question: “How likely are you to recommend your workplace to your friends and family on a scale of 0-10?” (With 10 being extremely likely and 0 being not likely at all). Employees who score a 9 or 10 are known aspromoters(happy employees). Those who score a 7 or 8 arepassives(neutral). And those who score between 0 and 6 aredetractors(unhappy employees).

The easiest way to distribute your surveys and calculate your company’s eNPS is by using the Factorial eNPS app

Here’s a video with a bit more information on how you can calculate your eNPS:

Time to hire 

Another important people analytics metric is yourtime to hire. This is a KPI that you can use tomeasure how effective your hiring process is. This is important because if your hiring process is too slow, then you’re more likely to lose candidate interest and limit your team’s productivity.Reducing your time to hire, in contrast, can improve the candidate experience as well as your company’s employer brand.

Calculating your time-to-hire metric is simple. You just need tocalculate how many days pass between receiving a successful candidate’s application and them accepting your job offer. So, for example, if you post a job on day 1, a candidate applies on day 5, and they accept your offer on day 30, then your time to hire is 25 days (30-5). Then, if your time to hire is too long, you can implement measures to help your hiring process run more efficiently so that you can attract quality talent to your business.

Labor turnover 

Keeping track of your labor turnover helps you evaluate how well you are able to retain your employees. This HR metric is very important as itreflects the overall health and stability of your company. If your turnover is too high, then it suggests that your employees are not happy. And this can have a direct impact on overall productivity and engagement. It can alsodamage your employer brand and reputation and prevent you from hiring top talent

To calculate your labor turnover, you need to know the following:

  • The number of employees who left within a given period
  • The average number of total employees within the same period

Once you’ve collected this data, you can use the following formula to calculate your current labor turnover:

Labor turnover rate (%) = (number of leavers/avg. number of employees) x 100 

If the figure you get is high, you can then work on identifying thecauses of your high labor turnover. Then, once you’ve implemented corrective measures, you can evaluate your rate over time to see what sort of an impact they are having on your retention and turnover levels. 

turnover calculator


Aside from keeping track of how many people work at your organization, it’s also important tomake sure that your workforce is diverse and inclusive. Includingdiversity metricsin your people analytics model can be a great strategy for achieving this. 

Diversity metrics are the measurable numerical values that help HR identify workforce demographics and assess the efforts of the company towards inclusive practices. As with other HR metrics,diversity metrics allow you to gain insight into your workforce and the overall health of your company.

The first step with diversity metrics is understanding which ones are of the most value to you according to the specific characteristics of your workforce. Essentially, this meansevaluating the demographics of your organization to determine where there is room for improvement.

For example, there might be a notable gender imbalance in certain departments, or you might uncover an issue with age bias that you need to address. You shouldpay particular attention to diversity metrics that relate to hiring, promotion, employee satisfaction, and retention.

Here’s a video with a bit more information on the importance of DEI data:

Job satisfaction

One of the most essential HR metrics for your business relates to job satisfaction, also known asemployee satisfaction. Job satisfaction is how happy an employee is in their role. Your overall job satisfaction rate reflects your employee experience as well as the attitudes of your workforce towards your business.The higher your job satisfaction rate is, the more likely you are to have an engaged and committed staff that strives to help you meet your organizational objectives.

The job satisfaction metric is influenced by a number of aspects. These includeworking conditions, the relationships between employees and managers, the employee benefits you offer, and the clarity of your job descriptions and responsibilities. It’s important to work on improving all these areas. That way, you can improve your overall employee experience and develop a more satisfied workforce.

The best way to measure job satisfaction is through regularemployee pulse surveys. These are brief surveys consisting of short, open-ended questions. The idea is to send them out on a regular basis. That way, you can keep your finger ‘on the pulse’ of employee sentiment. 

Other important metrics that reflect employee satisfaction includeturnover and absence rates. Plus, you can also gather a lot of valuable feedback by conductingregular employee reviews and appraisals

Overtime expense HR metrics

The overtime expense metric helps you keep track ofhow much you are spending on overtime. Aside from helping you manage yourinternal budgets, this HR metric is also valuable in terms ofemployee engagement and productivity. This is because if your employees are regularly working long hours, they are at risk ofburnout and stress. Long overtime hours also often lead tohigher rates of absenteeism and increased turnover

By monitoring your overtime expenses regularly, you can identify potential problem areas and implement measures to address them. These might includeoutsourcing certain tasks, automating some of your work processes, or hiring additional employees

Training efficiency HR metrics 

Training efficiency HR metrics help you evaluatehow effective your learning and development initiatives are. They also help you understandhow much you are investing in training, and whether the L&D you offer isdriving the desired effects and boosting business performance

You can focus on a number of aspects here:

  • The number of employees who successfully complete training.
  • Training assessment pass/fail rates.
  • How employee performance evolves as a result of training.
  • The impact of training solutions on your overall KPIs and objectives.
  • Financial return ratios.

There are a number of methods you can use to determine how efficient the training you offer is. You can sharepost-training quizzes or tests, track training goals with specific benchmarks, or share self-assessment questionnaires. You can also collectinformal feedbackfrom peers and managers or conduct on-the-job observations to determine how training has impacted an employee’s performance. All this will help you establishwhether you are getting the ROI you need from your L&D programs.

Manager effectiveness HR metrics

In order to grow and develop as a business,it’s important to have the right managers leading your teams. And this is why it’s essential to include manager effectiveness in your HR metrics dashboard. 

Put simply, manager effectiveness isthe ability of your leaders to help your company reach its goals. It also takes into accounthow effective a manager is at supporting employee development and managing employee expectations. And this requires a range of skills includingleadership, communication skills, decision-making, and mentoring. It’s also vital that your managers understand what their roles entail and what you expect from them. 

Here are a few examples of differentHR metrics you can use to measure manager effectiveness:

  • Turnover and retention per manager
  • Engagement scores per manager
  • Absenteeism per manager
  • Team performance metrics
  • Management performance review results (including 360 appraisals)

Quality of work HR metrics

The increasing popularity of remote and hybrid working models that we have seen since the pandemic haschanged the way companies measure employee performance. Instead of focusing on hours in the office and employee behavior, many organizations are now evaluating quality of work by measuring specific outcomes with clear performance metrics. As a result,tools like the 9-box grid are being used more often for talent mapping and measuring performance.

The 9-box grid, also known as the 9-box assessment model, is atalent management tool used to analyze and compare employee work performance and potential. It helps managers identify future leaders. The 9-box can also be used toreevaluate talent placement, improve succession planning, and identify performance issues and talent gaps. It facilitates employee growth and contributes to retention, engagement, and productivity. 

With the 9-box grid, you map your employees againsttwo axes:current performance and future potential. Where each employee falls on the grid will depend on their combined score. The higher the score, the more potential for growth. This information can then be used tostrategically develop employees for future positions within the company

Employee growth rate 

Your employee growth rate is an HR metric that reflectshow much a company is either growing or shrinking according to its number of employees. This is an important metric to monitor for a number of reasons. Firstly, it helps you determineif your workforce is increasing in line with projected growth. If it’s not, then it could suggest that you have an issue with employee retention. Secondly, it’s a great tool forsuccession planning

To calculate your employee growth rate for a specific period (a quarter or a year, for example), you just need tocalculate an employee headcount at the start of the period(“Point A”)and at the end of the same period(“Point B”). You then subtract the headcount at Point A from the headcount from Point B, then divide this figure by your original Point A headcount. Once you’ve done that, simply multiply your result by 100 to represent it as a percentage.

Revenue per employee 

The last of all the HR metrics we are discussing today isrevenue per employee. This metric reflectshow much revenue the average employee is generating for your business. You can calculate this by measuring the total revenue that your organization generates over a given period (usually a year), then divide this figure by your current number of employees.

You can then use your results to:

  • Determine the efficiency and productivity of the average employee at your company.
  • Compare revenue per employee year-on-year to see if there are any notable changes. 
  • Track the performance of your employees (the lower the ratio, the more likely you are to experience losses such as an unexplained high turnover rate and increased labor costs)
  • Evaluate any historical changes within your organization so that you can make improvements to your operations and encourage growth through the right hiring practices, training, and retention programs.

Tracking HR Metrics with Factorial 

Tacking the right HR metrics is great, but in order to get the most from the process,you need to analyze your metrics in the right way. You also need to create an effective system so that you can collect all the people analytics data you need and access insights in real-time. That way, you canuse your data to predict future behaviors, measure the impact of any changes you make to your HR processes, and make better informed strategic decisions about your business

This is where advances in workplace technology and data management tools can help you.

These days, instead of relying on intuition and manual processes for collecting employee data, most companies useHR analytics software. The right software canstreamline your HR metrics data collection processesand give you access to the tools you need to accuratelytrack, analyze, and interpret your data.

For example, if you are usingFactorial’s human resources softwarethen you will already have access tocustomizable and scalable reports and dashboards to help you with this. Moreover, Factorial automatically generates these reports from the information already introduced by you and your employees. This saves you a lot of time as there’s no need to manually enter your data. You can then use thesecustom HR reportsto createeffective benchmarksso that you can make informed decisions about your future business strategies. And, best of all, you can visualize your metrics and manage your reports straight from your ownHR dashboard. All this makes it much easier tostay on top of your HR metrics so that you can generate the insights you need to grow your business.

Cat Symonds is a freelance writer, editor, and translator. Originally from Wales, she studied Spanish and French at the University of Swansea before moving to Barcelona where she lived and worked for 12 years. She has since relocated back to Wales where she continues to build her business, working with clients in Spain and the UK.  Cat is the founder of The Content CAT: Content And Translation, providing content development and translation services to her clients. She specializes in corporate blogs, articles of interest, ghostwriting, and translation (SP/FR/CA into EN), collaborating with a range of companies from a variety of business sectors. She also offers services to a number of NGOs including Oxfam Intermón, UNICEF, and Corporate Excellence - Centre for Reputation Leadership.  For more information or to contact Cat visit her website ( or send her a message through LinkedIn.

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