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14 essential HR performance indicators

Until a few years ago, HR data related to recruiting and retaining talent was viewed with some skepticism.

Today, it's considered essential in that it brings to light valuable information about an organization and its workforce, allowing for finer and more effective management.

  • What are the indicators you should be monitoring?
  • Why should you track them ?
  • How to calculate them ?

I offer you no less than 14 performance indicators to better evaluate your actions. Did you know them all?

To go directly to our infographic, click here!

1 - Employee Net Promoter Score (eNPS)

The Employee Net Promoter Score (eNPS) is an indicator used to measure employee satisfaction.

It can also be used to determine their level of engagement.

To get your eNPS score, first provide a questionnaire to your employees. Ask them to rate (anonymously) how likely they are to recommend your company to others on a scale of 0 to 10. It's a good idea to conduct this survey regularly, such as twice a year or once a quarter.

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The results break down as :

  • Between 0 and 4 : employees are considered detractors of your employer brand ;
  • Between 5 and 8 : they are classified as passive employees ;
  • Between 9 and 10 : they are listed as promoters.
illuminate engagement indicatorThe eNPS, an indicator that sheds light on your employees' engagement  

Once you've applied this score and broken down the results by category, all that's left to do is this calculation:

eNPS = % promoters - % detractors

eNPS is a great metric that you can measure frequently and use to set goals to improve employee engagement.

2 - Employee turnover rate (Turnover)

This is probably the most commonly used HR indicator. Employee turnover, more commonly referred to as Turnover, indicates the number or percentage of employees who leave a company in a given period.

This indicator is useful for evaluating your company culture, recruitment strategy and more. A high rate may be caused by internal issues that management should address.

Here's how to calculate this KPI:

Turnover rate = (Number of departures / Average headcount) x 100

3 - New Employee Turnover

This is the number or percentage of employees who quit within their first year at your company.

For some HR experts, this metric is even more important than the turnover rate. Here's how to measure it :

New hire turnover rate = (Number of employees leaving after less than a year / Number of departures over the same period) x 100

turnover new employees
Low new hire turnover tells you optimal HR performance

4 - Average time to hire

Recruitment-related data is some of the most useful HR information a company can measure. Tracking and analyzing these metrics can help you identify areas for improvement and strengthen your talent acquisition strategies.

Among these metrics, the most widely used remains average time to hire. This is the average number of days from the time a job offer is posted to the time it is accepted.


Here is the formula for this indicator :

Average Hire Time = Number of days job postings are published / Number of jobs to be filled

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Inbound Recruiting et IA générative

5 - Offer acceptance rate

Another popular metric, the offer acceptance rate measures the percentage of candidates who accept job offers.

If this rate is low, the causes can be various  unattractive pay, poor job title, lack of benefits, etc. All of these factors can lead a candidate to refuse your offers.

The calculation to measure this is simple:

Offer acceptance rate = (Number of offers accepted / Number of offers) x 100

6 - Absenteeism Rate

Absenteeism is an issue regardless of company size. Here again, several factors can be at the root of this obstacle : too rigid company culture, no salary benefits, employee dissatisfaction, etc.

It is important to note that the absenteeism rate measures how often employees do not show up for work due to illness or other reasons. This indicator does not take into account planned absences (e.g., paid time off).

Tracking this data can help you identify certain trends, such as times of the year when absenteeism is higher. You can then look for the causes of these trends.


The equation to calculate this KPI:

Absenteeism rate = (Number of days absent / Number of working days) x 100

7 - Absenteeism Rate by Manager or Department

You can further reduce your absenteeism rate by looking at the data by manager or department. This will help you identify problem areas and then find solutions.

To evaluate this indicator:

Absenteeism rate by manager or department = (Number of days absent by a team or department / Number of working days for that team or department) x 100

8 - Employee satisfaction

Many studies have shown that happy, engaged and satisfied employees are also the most productive. They are also far less likely to leave your company, reducing your turnover rate and recruiting expenses.

performance satisfaction piggy bankMonitor the satisfaction metric to improve your company's overall performance: vyour wallet will thank you!

So it's important that you know how to measure your employees' level of satisfaction.

The eNPS (see above) is one way to measure this satisfaction. In addition, other surveys can help you determine how satisfied your employees are and find ways to improve their happiness.

9 - Cost of training per employee

Learning is more important than ever to employers and employees. Many companies are spending a lot of resources on training their employees.

The cost of training per employee has never been higher.

Given the amount of money spent on learning and training, it's not surprising that you need metrics to justify these costs (which are really investments) to management.

The cost of training per employee is one such metric to track. It involves calculating the average amount the company spends on learning per employee.

The formula to get this figure is

The formula for getting this amount is as follows:

Training cost per employee = Amount spent on training / Number of employees trained

10 - Training time per employee

Another useful indicator is training time per employee. This calculates the average number of hours of training each employee in your company has received.

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This information can help your organization determine how many hours of training each employee needs to complete to meet a defined goal.

Here is how to go about calculating this indicator:

Training time per employee = Number of training hours / Number of employees

11 - Cost of a hire

Often considered one of the most important HR metrics, the cost of a hire can help you determine how much money is spent on each new hire.

If you know how much a hire costs you can determine how effective your talent acquisition strategy is.

You will need time to calculate this cost accurately, however, because some of the expense data (internal and external) must first be determined.

The formula for calculating it:

Cost of a hire = ([Sum of external expenses] + [Sum of internal expenses]) / Number of hires)

12 - Turnover per employee

Another organizational metric, revenue per employee can help determine if your company's headcount is optimal. It will be especially useful if measured and compared over time. This data has also proven to be very valuable for small businesses.

turnover employee indicatorNo more headcount issues by monitoring the turnover per employee indicator!

To calculate it per year :

Turnover per annual employee = Annual turnover / Number of employees.

13 - Employee productivity rate

If you know the productivity of your employees, you can set individual performance goals on a monthly, quarterly and/or annual basis. The same goes for goals to be achieved by teams or departments.

There is no one "right" way to measure the overall effectiveness of employees' work, but performance tracking will help you decide on promotions, track business growth, and much more!

Productivity rate = total number of sales in a certain time period / number of employees in the company

14 - Promotion rate

It is important for employers to have data on promotions and changes in responsibilities within the company.

These numbers could help explain why your turnover rates are high, or why your employee satisfaction decreases the longer they are with your company. Tracking this indicator can also help you analyze your training efforts. If your numbers are positive they can even be used as an argument to attract and retain talent.

To define your promotion rate, do the following calculation :

Promotion Rate = (Number of promotions / Total headcount) x 100

To better visualize these indicators, here is our infographic on the 14 HR performance indicators.

HR Indicators Infographic


Topics: Inbound Recruiting, KPI