A Key Performance Indicator (KPI) is a quantifiable metric that focuses on performance and is used to monitor specific aspects of an organization. The KPIs relevant to an organization depend on its specific activities. Here are some common and useful KPIs for monitoring and improving performance in HR.
Employee Turnover Rate
- Measures the percentage of employees who leave the company within a specific period.
- High turnover rates might indicate dissatisfaction or issues in the work environment.
Time to Hire
- The average time taken to fill a vacant position.
- Shorter times indicate an efficient hiring process.
Employee Engagement Score
- Gauges the level of employee satisfaction and commitment.
- High scores suggest a positive and motivated workforce.
Absenteeism Rate
- The percentage of workdays lost due to employee absences.
- Lower absenteeism rates reflect better employee health and job satisfaction.
Training Completion Rate
- The percentage of employees who complete assigned training programs.
- High completion rates indicate a commitment to professional development.
Performance Appraisal Scores
- Average scores from employee performance reviews.
- Higher scores suggest effective performance management and high employee productivity.
Employee Retention Rate
- The percentage of employees who remain with the company over a specific period.
- High retention rates reflect a positive work environment and strong job satisfaction.
Cost per Hire
- The total cost incurred in hiring a new employee.
- Lower costs per hire indicate a cost-effective recruitment process.
Internal Promotion Rate
- The percentage of positions filled by internal candidates.
- High promotion rates suggest robust talent development and employee growth opportunities.
Diversity and Inclusion Metrics
- High diversity rates indicate a commitment to fostering an inclusive workplace.
- Measures the representation of diverse groups within the company.
These KPIs help to monitor and improve the various aspects of human resources, ensuring a healthy, productive, and engaged workforce.
How well is your organization performing?