20 HR Metrics That Every Company Needs to Track

Want to make better decisions? Get better data. The HR metrics your company tracks will directly impact decision making in your organization. If you’re not tracking the right things, or if you’re not looking at your data holistically, you might miss opportunities for improvement. Here we break down the 20 HR metrics that every company needs to track.
20 HR Metrics That Every Company Needs to Track

We live in an increasingly data-driven world. Collecting and analyzing data helps businesses make decisions, improve processes, and drive results. Departments such as sales and marketing have been using data for decades to make more informed decisions, but many departments, including HR, are still lagging behind. It’s time to change this, and we want to help. We want to outline 20 HR metrics that every company needs to track. Tracking these metrics will not only arm you with data at the strategic table but will also shine a light on the strong and weak points of your organization.

What Are HR Metrics?

HR metrics are the numbers and data that human resources departments should track in order to inform their decision making. HR metrics allow companies to understand their efficiency with human capital, the happiness and engagement of employees, their blindspots in diversity, and so much more.

Why Should You Make HR Metrics a Priority?

You might anecdotally see the need to make changes or take certain actions within your company, but it will be challenging to get executive support without evidence. By tracking the following HR metrics and understanding the data, you’ll be able to supercharge your arguments with hard numbers. 

What HR Metrics Should I Track In My Company?

Here is a list of the top 20 metrics that every company needs to track:

Hiring

  • Number of Open Jobs: You should always know how many jobs are currently available, which jobs the company will soon be hiring for, and the basic costs your company incurs with each new opening.
  • Average Time to Hire: To calculate this, track the number of days it takes your company to hire for each position (start with the day the job was posted and end with the day you make a hire). Do this for multiple positions and then divide by the number of jobs to get an average time to hire.
  • Offer Acceptance Rate: Not every candidate will accept a job offer. To get an idea of how likely candidates will be to accept an offer, start tracking offer acceptance rate by dividing the number of offers accepted by the total number of offers made. If your company has an acceptance rate below 80%, it might be a sign that your offers are not competitive in the marketplace.
  • Time to Productivity: This can be a little tricky to measure, but with the help of department heads and managers, it can definitely be done. It’s important to know how long it will take for an employee to ramp up and begin contributing after they are hired. This will likely change depending on the position or department, but will help you better forecast employment needs in the future.
  • New Hire Turnover Rate: This metric is typically used to track what percentage of your new employees leave within their first 90 days of employment. Take the total number of new hires that leave within 90 days and divide it by the number of total hires made in that same period. Keeping this number low will have a positive impact on your business.
  • Cost per Hire: It’s important to understand the real financial impact of making a new hire. This number should include all of the costs related to posting the job, the recruiting effort, the time interviewing candidates, and the onboarding effort.

Need help hiring the best candidates? What about improving your time to hire? EddyHR’s ATS can help make it happen.

General

  • Headcount: This is the total number of employees who are currently employed at the company. You’ll also want to also break this number down by department and location.
  • Demographic Reports: These reports include ratios of male-to-female employees, ethnicity and diversity statistics, education levels, and even length of tenure.
  • Salary Reports: To avoid contributing to gender or race wage gaps you should monitor the salaries being paid at your organization. Break salary information down by job, gender, and race/ethnicity. Ensure that people who are doing the same job and have similar tenure and titles are being paid evenly.

Employee Engagement

  • Turnover Rate: This is the rate at which employees leave your organization each year. To calculate your turnover rate you’ll take the number of employees who left and divide that by the average number of employees within the organization.
  • Voluntary Turnover Rate: Similar to turnover rate, voluntary turnover rate tracks the number of employees who leave your organization voluntarily. This is a key (albeit lagging) indicator of workplace and job satisfaction.
  • Retention Rate: The opposite of turnover rate. This is the rate at which employees choose to stay at your company each and every year. Calculate this number by taking the number of employees who remained with your company and dividing it by your average employee count.
  • Retention/Turnover Rate by Department: We broke this metric out because it can be extremely telling. Retention or turnovers rates may look good for the majority of your company, but it’s possible that certain departments or positions have been turning over at a far higher rate than others. This level of department-by-department data will help you understand how to address these problems quickly.
  • Employee Satisfaction: This can be measured in a variety of ways. There are eNPS (employee Net Promoter Score) surveys that can be administered and analyzed, but there are also simple pulse surveys and questionnaires that you can send employees on a monthly basis to judge satisfaction regarding their job, manager, the overall workplace environment, and more.
  • Employee Engagement: In a similar vein to employee satisfaction, employee engagement surveys focus on how engaged an employee is at work. They might be happy with their benefits, pay, and co-workers, but unless they’re engaged in their job, their performance will dip and they might not stay at your company long term.

Time

  • Time-Off Report: Whether its vacation time, sick leave, maternity leave, or something else, track it. This is not only useful to understand who might be taking a little too much vacation, but it’s also helpful to highlight employees who might benefit from more time away from the office. Additionally, if your company uses limited, accrual-based time-off policies, you’ll need to keep track of the PTO balances for each employee who is eligible for paid time away from work.
  • Absentee Report: This metric is used to track which employees are missing work without an approved time-off request. You’ll want to monitor the rate of absenteeism on a month-to-month basis.
  • Overtime Report: The number of overtime hours worked by your entire workforce in a given pay period. You will also want to individually track this for each employee.

Performance

  • Revenue per Employee: This is the amount of money the company makes per person it employs. To find this number, divide the company’s total revenue (in a year or in a quarter) by the average number of employees during that same period. By tracking this number over an extended period of time, you’ll be able to see if adding new employees is actually financially efficient for your company.
  • Employee Performance: Individual employee performance can be tracked in a variety of ways. You might use frameworks or goal-setting methods like OKRs to track this data, or you might have an internal performance system within your organization.

The Most Important Thing Is To Start

There’s a good chance that you’re already tracking some or many of these metrics. If so, keep it up! You’re doing great. If you haven’t started seriously tracking HR metrics then now is the time to start. We understand that there is a lot you could be tracking, and it might be overwhelming to think about what you’re not doing. But remember, the most important thing is to get started.

Take a second and think about which of these metrics would be most important to you, your business, and your CEO. Make a list of three or five metrics that you think you should start tracking right away. Once you know what you’re going to track, make a plan for how you’ll do it.

If you haven’t invested in HR software already, that might be a great place to start. Software products have many of these tools or metrics built into their platform, and you can quickly generate reports on things like headcount, time to hire, time-off reports, and so much more.

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