5 KPIs to keep an eye on in Human Resources

KPIs (Key Performance Indicators) are the so called Performance Indicators, that is, they are able to measure the results of a business in a certain area. Numerous sectors of companies around the world have their KPIs, but many leave HR aside when thinking about it, which is a big mistake. 

Throughout this article you will learn more about:

• why it is important to look at KPIs in HR;
• the essential KPIs of the area. 

After all, why is it important to have KPIs for the HR area?

The Human Resources area, like any other, needs to have tools to help understand its results. It is only possible to measure through indicators, that is, without them it is impossible to understand if the area is, in fact, a success. 

There is no point, for example, in defining activities for HR if you do not know if what is being done meets the needs of the organization. Remembering, of course, that this can encompass the most diverse segments of the area, such as recruitment and selection of talent, employee retention and even team productivity. 

Know the most important HR indicators

Now that you already understand more about what the KPIs for HR are and what they are for, it is time to know some of the most important ones to put into practice and monitor in your company, see:

1. turnover rate

The turnover index, also known as turnover rate, is, in fact, one of the most important for the Human Resources area of any organization. 

It indicates the number of employees who join and leave the company, regardless of whether they were dismissed for just cause or left of their own accord during a given period. 

You can analyse this KPI to understand if, for example, the selection is being carried out in the right way or even if the leadership of the teams is performing well. 

2. Absenteeism

Absenteeism is the absence of employees, i.e. their absences, whether justified or not. This also includes, for example, delays in starting work and medical absences. 

Measuring this kind of thing helps HR to predict absences that may happen in a certain period and also understand if it is necessary to think of specific actions for this purpose. It is important to keep in mind that the higher the absenteeism, the fewer the hours worked and, consequently, the lower the productivity. 

3. NPS

A company's internal NPS (Net Promoter Score) is essential because it indicates how much an employee would recommend that organisation to other people to work for. You can run a monthly form for teams to answer anonymously, with an open field for possible comments.

4. Internal x external promotion rate

Is there a well-defined career plan in the organisation? Understanding about the rate of employee promotions internally compared to externally is important. 

In this index you compare the number of employees who have been promoted in positions within your company compared to employees who have left your company for higher positions in other organisations. 

It is interesting to understand if the training is being adequate and if the company's current leadership is developing their teams. 

5. ROI in training

ROI is nothing more than return on investment, i.e. how much the organisation received back after making an investment in a certain area of the company. 

The ROI on training compares how much the company spent on capacity building and training the teams in relation to the benefits that these trainings should bring, such as reducing failures, for example. It is a clear relationship between investment and company expenses. 

Did you like to understand more about KPIs for HR? Here on Alymente's blog you will find other content on the subject. Also read about People Analytics in Human Resources!