Success Metrics



10 HR Metrics You Should Know About

Data drives human decision-making. We try food multiple times before we decide we don’t like it. We walk the same route to work because we’ve learnt it’s the quickest way. 

Businesses are also, for the most part, driven by data. Using metrics, organisations gather information to improve processes. In Human Resources (HR), metrics are key to improving workplace performance.

We share 10 HR metrics and explain how they can be a great starting point for writing data-driven OKRs.

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Why use HR key metrics?

Metrics have a host of benefits, but they all have the same starting point — visibility. In business, visibility gives departments the power to progress and grow, and HR is no exception. Metrics are an essential part of HR functioning as they provide teams with the opportunity to improve. 

On that note, let's start with some benefits of using HR metrics. 

  • More efficiency — HR metrics highlight the limitations of your HR team, allowing you to improve your processes. 
  • Better resource allocation — Smoother processes mean better allocation of finances and time.
  • Employee satisfaction — Metrics can help your HR team identify unsatisfied employees and develop programs to boost morale.
  • Improved ROI on HR programs — HR metrics help you understand what your teams need to improve their performance.

10 HR metrics examples

Here are 10 examples of HR metrics that are worth tracking and why.

1. Time-to-hire

Time-t0-hire tracks the time between when a company first contacts a job candidate and when they accept employment.

Why it matters

This metric’s primary goal is to highlight your recruitment strategy's efficiency — or inefficiency.  It can help you identify weak spots and make improvements. If your time-to-hire is long by industry standards, your cost-per-hire may also be high.

2. Quality of hire

Quality of hire is an important metric as it reveals the value a new employee adds to the company. Although tricky to measure, it provides useful information about your recruitment and selection processes' effectiveness.

Why it matters

Like most recruitment metrics, quality of hire can be leveraged to refine the hiring process. High quality of hire may indicate that an organisation is performing well and reaching its goals. This is because quality candidates result in more company-wide innovation and productivity. 

3. Retention rate

In HR, a retention rate is the number of employees who remain at a company for a specified period. 

Why it matters

Assessing your company’s average employee retention rate can help you improve your business from the inside out. A high retention rate indicates a stable work environment and positive company culture.

4. Cost-per-hire

Cost-per-hire measures how much a company spends per new hire. Ideally, cost-per-hire should be low, but not at the expense of quality-of-hire.

Why it matters

An understanding of the cost-per-hire in your company allows you to make more strategic recruitment decisions and better allocate resources. Use it to identify and reduce inefficiencies in your recruiting process.

5. Employee Satisfaction Index (ESI)

The Employee Satisfaction Index (ESI) measures employee satisfaction in the workplace. This can depend on various factors such as salaries, flexibility and company culture.

Why it matters

With the ESI, you can find out if your workers are satisfied with their jobs. Highly satisfied employees are more engaged and productive. If satisfaction is low, you can start to implement improvements.

6. Internal promotion rate

A business’s internal promotion rate is determined by the number of senior roles filled internally divided by the number of senior positions filled overall.

Why it matters

The internal promotion rate can offer insight into an organisation’s culture. A high internal promotion rate can indicate fast company growth and high employee trust. It may also denote inclusion issues. Low internal promotion rates may be a sign of high turnover. 

7. Turnover rate

Turnover measures how many employees leave a business in a specified period, such as a year. Ideally, companies should have low turnover.

Why it matters

Keeping an eye on this metric is crucial, as a high turnover rate can indicate culture issues within your organisation. If your organisation's turnover rate is high, you’re also probably spending more than necessary on recruitment. 

8. Overtime rate

A business’s overtime rate refers to employees' average overtime hours or extra time worked. 

Why it matters

Your overtime rate is a useful indicator to evaluate the well-being and health of your employees. A high overtime rate can indicate a dedicated — or understaffed — workforce. It can also be costly since overtime is usually paid more.

9. Absence rate

The absence rate measures unexpected employee absences throughout a period such as a year. It is calculated by dividing the number of absent days by working days.

Why it matters

HR teams can use this metric to predict absences or problems with a company's operations. The absence rate also reveals the impact of absenteeism on the company's bottom line.

10. Training ROI

Training return on investment (ROI) measures the money an organisation makes after training its employees versus the training costs.

Why it matters

Organisations should measure their training’s return on investment for insight into the effectiveness and value of the program. HR teams can use this metric to identify courses with good yield versus those without.

How to use key HR metrics to grow your business

HR metrics may be one small step for man, but they’re one giant leap for business. Key HR metrics are more than just numbers on a screen — they’re the backbone of data-driven HR strategies. 

Find the gaps in your processes and determine where you need to focus your efforts. Once you’ve got your goals, it’s time to start implementing them. Our favourite way is, unsurprisingly, with OKRs.

You can set and follow through on your objectives using the Objectives and Key Results (OKRs) methodology. The areas of improvement you’ve identified with the help of HR metrics will become your objectives for the quarter. 

OKRs software like Tability can make it easy to get started, with weekly check-in emails keeping you accountable.

Interested? Try it for free today!

Pair your


Metrics with OKRs

Check out our OKRs for


guide, and connect your favorite Success Metrics to objectives you can execute on.

Browse OKRs Examples →

Pair your Success Metrics to OKRs

Check outour OKRs Examples and connect your favorite Success Metrics to an objective you can execute on.

Browse OKRs Examples →

Got an objective in mind, but not sure how to get there?

This AI can create a detailed strategy with all the steps to take to reach your goals.

Free trial


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