11 HR key performance indicators you should be tracking 

94% of HR leaders believe the right data and insights can help them make better decisions, but with so many possible metrics out there, how do we know which are the ones that matter?

In this blog, we’ll break down what HR KPIs are and share 11 essential KPIs that HR leaders should track.

Let’s get started!

What are HR KPIs?

The role of HR in leading organizations continues to evolve, going beyond administrative tasks to influence workplace culture and guide organizational strategy.

According to Gallup, 27 percent of white-collar employees frequently use AI at work. By bringing in AI systems to make repetitive processes more efficient, whilst automating routine tasks, HR teams can focus more on tracking and analyzing the KPIs that drive business impact.

Focusing on the correct KPIs allows organizations to surface workforce trends, measure the effectiveness of HR and L&D initiatives, and make data-driven decisions that improve both employee experience and overall business performance.

HR KPIs vs HR metrics

It’s easy to confuse KPIs with HR metrics. Here’s the difference:

• HR metrics are any data points related to human resources, such as the number of training hours or open positions.
• HR KPIs are the values selected to measure how effectively an organization is achieving its goals or targets.

In short, all KPIs are technically metrics, but not all metrics are KPIs. Focusing on KPIs ensures you are measuring effectiveness.

HR KPIs to track

Of course, every organization is different, and so the KPIs you choose to track will depend on your size, industry, and priorities.

We’ve put together the list below as a useful starting point, not a checklist you have to follow.

New hire turnover rate

New hire turnover rate (%) = (Number of new hires who left ÷ Total number of new hires) × 100

Measures the percentage of employees who leave the organization during a specific period, usually within the first year (or possibly shorter, depending on your industry).

When new employees leave too soon, it has an impact on team morale, disrupts workflows, and, yes,  gets expensive!

Gallup estimates that replacing an employee costs anywhere from half to twice their annual salary, depending on the role.

In tracking this by team, role, or tenure, HR teams can identify patterns and take action, whether that’s rethinking the overall onboarding process, clarifying expectations, or offering more targeted training to get new hires up to speed in a more confident and connected way.

Want to set your new employees up for success from day one? Check out our step-by-step guide to onboarding new employees.

Employee turnover rate

Employee turnover rate (%) = (Number of employees who left ÷ Average number of employees) × 100

Employee turnover rate measures the percentage of employees who leave the organization over a given period, whether voluntarily or involuntarily.

A certain level of turnover is expected and even healthy.

But when the numbers begin to rise, it’s often a warning that something deserves a closer look. High turnover disrupts the team dynamics and slows progress overall, whilst placing an additional strain on those who remain.

Tracking this KPI is especially important because many voluntary departures are preventable.

In fact, 42 percent of employees who voluntarily left their organization said their manager or organization could have done something to keep them from leaving. Understanding why people choose to move on allows senior management to address problems early on.

Employee retention rate

Employee Retention Rate (%) = (number of employees at end of period ÷ Number of employees at start of period) × 100

Tracks the percentage of employees who stay with the organization in the given timeframe.

This KPI is the flip side of turnover and gives insight into whether employees feel valued and see opportunities for growth. A declining retention rate is usually a red flag for engagement issues or insufficient career development programs.

Employee retention rate per manager

Employee retention rate per manager (%) = (Number of employees who remain under a manager ÷ Number of employees under that manager at start of period) × 100

Employee retention rate per manager adds an extra layer of insight by showing how well individual managers retain their teams.

Strong managers create environments where people feel trusted, supported, and motivated to do their best work.

On the other hand, consistently low retention on a team might be a sign that a manager may need additional support or training.

This KPI gives HR leaders and senior managers a practical way to recognize great people leaders and invest in improving leadership skills where needed.

Time to hire

Average time to hire (days) = Date candidate accepts offer − Date candidate enters pipeline

Measures the average number of days it takes to fill a vacancy.

An unreasonably long time to hire will delay business projects and overburden existing employees, while shorter times usually improve candidate experience.

Monitoring this KPI allows HR teams to identify bottlenecks in the recruitment process and make adjustments to streamline hiring.

For context, the global average time to hire in 2024 was 44 days, but this varies widely depending on industry, role, and location.

Tracking your own data allows you to set realistic benchmarks and uncover opportunities for improvement.

Cost per hire

Average cost per hire = Total recruiting costs ÷ Number of hires

Calculates the total recruiting cost divided by the number of hires. This KPI enables HR teams to measure how efficiently hiring budgets are being used and where resources are having the most impact.

The average cost per hire in 2022 was nearly $4,700. While some roles naturally require a higher investment, high costs tend to mean there is an opportunity to refine your hiring processes.

Reviewing your recruitment channels, investing more in employer branding, or revisiting how you write your job descriptions is a good place to begin.

Employee productivity

Employee productivity measures how effectively employees contribute to achieving business goals.

This is not about hours worked or time spent at a desk. Productivity can be measured in several ways, depending on the role and organization:

Output-based metrics: Number of projects completed, tasks delivered, or sales closed within a period.

• Performance-based metrics: Quality of work, achievement of goals, or attainment of KPIs.
• Efficiency metrics: Time taken to complete tasks relative to expected benchmarks.

Tracking productivity alongside learning, engagement, and performance data gives HR and leadership a fuller picture of what enables employees to perform at their best, and where additional support, upskilling, or reskilling may be needed.

Employee engagement

Employee engagement score measures how engaged employees feel.

This is normally assessed using employee engagement surveys, pulse surveys, feedback tools, and participation rates in L&D initiatives.

According to research by ADP, only 20% of people report being fully engaged at work.

High engagement is closely linked to stronger productivity, higher retention, and better overall business performance. Low or declining engagement could be a symptom of employee burnout.

One way to raise engagement is through skill development. Research shows that 80% of workers feel more engaged when they have opportunities to learn new skills.

Make the most of your LMS by offering personalized learning paths, monitoring participation, and directly linking development opportunities to each employee’s growth and career journey.

Read more: How to improve employee engagement

Employee satisfaction

Employee satisfaction focuses on how employees feel about their roles, leadership, and overall work experience.

This KPI is often measured using employee net promoter score (eNPS) or satisfaction surveys.

A high score suggests employees are generally happy with their experience, while lower scores likely highlight areas that need attention – for example, development opportunities, workload, or more general leadership practices.

Absenteeism rate

Absenteeism rate (%) = (Total number of absent days ÷ (Number of employees × Number of workdays)) × 100

Absenteeism rate tracks unscheduled absences as a percentage of total workdays.

While occasional absences are expected, repeatedly high rates usually point to deeper well-being issues, which might indicate stress, low morale, or workplace health concerns. As a result, absenteeism has a direct impact on overall productivity.

This KPI proves the operational and financial impact of absences. You can track absenteeism through your HCM system, making it easier to monitor trends and maintain accurate records.

Internal mobility rate

Internal mobility rate (%) = (Number of employees who changed roles ÷ Total number of employees) × 10

Internal mobility rate measures promotions, lateral moves, and internal transfers within the organization.

A healthy internal mobility rate shows that employees have room to grow and explore new opportunities without leaving the company.

This not only supports retention but also sends a clear message that the organization values L&D.

Final thoughts

HR KPIs are powerful tools, but it’s important to keep in mind that temporary fluctuations are normal.

Trends vary; therefore, making decisions based on short-term changes will lead to missteps.

Focus on the data over time, and let it guide your strategy. Through tracking the right KPIs consistently, you will gain a clear, actionable view of workforce performance, engagement, and development.

Valamis helps you make the most of your insights.

Our platform seamlessly integrates with systems such as SAP SuccessFactors, connecting your HCM and LMS for a unified experience.

Book your 30-minute LMS demo.