✨  Don't miss out! Register for our Employee Appreciation Webinar scheduled for 29th February.🎖️
✨  Don't miss out! Register for our Employee Appreciation Webinar scheduled for 29th February.🎖️

Register now

Live Webinar: Secrets to Building a Successful B2B2C Growth Flywheel
Save your spot now

The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

Visit Hr Glossaries


Human resources KPIS serve as critical tools for measuring the effectiveness of an organization’s human capital strategies.

These metrics provide a quantitative foundation for understanding everything from recruitment processes and employee retention rates to training effectiveness and workforce satisfaction.

Tracking HR KPIs is essential for aligning the workforce with the strategic goals of the organization, optimizing employee performance, and enhancing overall organizational health.

In this glossary, we will delve into the pivotal HR KPIs that businesses must track to ensure they are not only managing but also maximizing their human resources to foster a productive, engaged, and motivated workforce.

What are the key HR KPIs for HR performance?

The key HR KPIS for HR performance are

1. Human resources (HR) KPIs

HR KPIS are essential for measuring the effectiveness of HR activities and strategies within an organization.

2. Employee turnover rate

This KPI measures the rate at which employees leave the organization. A high turnover rate may indicate dissatisfaction with workplace culture, compensation, career prospects, or management practices.

3. Time to hire

The average time it takes to fill a vacancy from when the job is posted until an offer is accepted. This metric helps assess the efficiency of the recruitment process.

4. Employee satisfaction score

Typically derived from regular surveys, this score reflects how happy employees are with their workplace environment, culture, and their roles. It is a direct indicator of the overall morale within the company.

5. Training effectiveness score

Evaluates the impact of training programs on employee performance and development. This can be measured through changes in work quality, productivity, and professional growth following training sessions.

6. Absenteeism rate

Tracks the frequency and duration of unscheduled absences among employees. High rates can indicate deeper issues such as job dissatisfaction, poor work-life balance, or inadequate health and wellness support.

7. Cost per hire

Calculates the total cost associated with recruiting a new employee, including advertising fees, recruiter salaries, administrative costs, etc. This KPI helps HR to optimize recruitment strategies financially.

8. Retention rate

Measures the percentage of employees who remain with the company for a certain period, typically annually. This KPI is crucial for assessing the effectiveness of retention strategies and overall job satisfaction.

Listen, recognize, award, and retain your employees with our Employee engagement software  

Where can HR professionals find resources to understand HR KPIs?

HR professionals can enhance their understanding of HR KPIs through various resources:

1. Professional HR Associations

Organizations like SHRM (Society for Human Resource Management) offer a wealth of resources, including courses, webinars, and publications that focus on HR metrics and how to interpret them.

2. Online courses and certifications

Websites like Coursera, Udemy, and LinkedIn Learning offer specialized courses in HR analytics that cover essential KPIs and their applications.

3. HR analytics conferences and seminars

Attending industry conferences provides insights into the latest trends and practices in HR analytics and KPI tracking.

4. Books and journals

Several publications are dedicated to HR metrics and performance measurement, providing in-depth explanations and case studies.

5. HR software vendors

Many HR software systems include analytics capabilities, and vendors often provide training and support to help HR professionals make the most of these tools.

Who should be in charge of tracking HR KPIs in a company?

Responsibility for tracking HR KPIs typically lies with:

  • HR managers and directors: They oversee the collection and analysis of HR data to inform strategic decisions and report on HR performance.
  • HR analytics specialists: Larger organizations might employ analysts dedicated to tracking and interpreting HR data.
  • HR business partners: These professionals work closely with department heads to ensure that HR strategies align with business needs and KPIs.

When should a company start focusing on HR KPIs?

A company should focus on HR KPIs as soon as it has a sizable workforce and structured HR processes. Early attention to these metrics can:

  • Guide scalable growth: Understanding HR metrics early helps companies manage more significant growth and prevent scalability issues.
  • Prevent costly turnover and engagement issues: Early intervention can mitigate issues before they become ingrained in the company culture.

Why are HR KPIs important for company culture?

HR KPIs play a crucial role in shaping and maintaining a positive company culture by:

  • Reflecting organizational health: Metrics like employee satisfaction and turnover rates offer insights into the overall health of the organizational culture.
  • Guiding improvement: Data-driven insights from HR KPIs inform the development of initiatives aimed at fostering a supportive, engaging, and inclusive workplace.
  • Encouraging transparency: Regular reporting on HR KPIs promotes transparency and accountability, contributing to a culture of trust and mutual respect.

How do HR KPIs impact employee satisfaction?

HR KPIs significantly impact employee satisfaction in several ways:

  • Identifying issues and trends: By tracking KPIs like employee satisfaction scores, turnover rates, and absenteeism, HR can identify patterns that may point to underlying issues affecting employee morale.
  • Informing HR strategies: Data from KPIs guide the development of targeted strategies to enhance job satisfaction, such as improving work conditions, offering competitive benefits, and fostering a supportive culture.
  • Monitoring and evaluating changes: After implementing new policies or initiatives, HR KPIs help measure their effectiveness in boosting employee satisfaction, allowing for timely adjustments.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Quick Links

Employee Engagement solutions

Recognised by market experts