12 KPIs Every HR Manager Should Measure in 2023

Here is the complete list of the top 12 Human Resources KPIs and metrics that every HR professional and manager should know:


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Objective of Tracking KPI's?

Human Resource Managers —  can often feel like they're trapped in a fog. Without a physical presence at the restaurants or hotels, it’s difficult to keep tabs on their teams.

And, they rely heavily on their Restaurant Managers to be their eyes and ears. While this could be effective, we believe the best way  for HR managers to gain visibility into their team’s activity is to collect and measure their performance through KPIs.

In this post, we'll cover what KPIs are in HR and all the KPIs and metrics you should measure.
Absenteeism Rate
  1. Engagement evaluation of your employees, could also indicate who is due to put in their resignation.
Overtime Hours
  • Maintain a close eye on how much work each employee is taking on to avoid burnout.
Time taken for education and training
  1. Time taken for education and training: Monitor how long you need to spend to get a new employee up to speed with systems and processes.
Cost per Hire
  • Analyze the cost incurred to find the perfect fit.
Recruiting Conversion Rate
  1. Will indicate which of the recruitment methods are most effective.
Time to Fill
  • Monitor how long you need to find a new employee.
Attrition Rates
  1. Attrition tracks the rate at which employees are leaving the organization.
Duration in position
  • Many employee departures are closely related to the time that they keep in the same position.
Accidents in the workplace
  1. It is important to measure the number of accidents in the workplace in order to avoid future issues and make your workplace a safe place to work.
Dismissal Rate
  • Find out if you’re recruiting the right employees.
Female to Male Ratio
  1. Understand the gender diversity in your company.
Numbers of Hires by internal referral
  • It is the calculation of the number of employees hired and a number of candidates referred by employees.
    Note: If a company has a high number of internal referrals that would indicate your company is a great place to work. 

Frequently Asked Questions

What are KPIs in Human Resources?
  • KPIs are metrics used to track the performance of a business, a department, or individuals against goals. Choosing KPIs that are most relevant to your industry and business goals is key — focusing on the wrong ones can be costly to your company.

    Once you have data for your HR KPIs, analyze the information to understand why you got those results. Then, figure out how you can improve performance and follow through with action. And remember — as important as tracking KPIs is, every HR KPI must be tied to an overarching goal.
When should KPIs be determined?
  • You can measure and report on KPIs each week, month, quarter, or year depending on your business needs. For example, if you have a monthly lead goal, it's a good idea to track your KPIs weekly. If performance tracks with expectations, you can gather insights into what your team is doing well.
How often should KPIs be changed?
  • A KPI can be measured weekly, monthly, quarterly and yearly.

    If a company sets a monthly goal (e.g., a monthly sales goal), it is recommended to monitor a KPI on a weekly basis. However, measuring KPIs too frequently may result in an inappropriate allocation of resources.
How do KPIs improve performance?
  • KPIs are measurable objectives that provide directional insight on your company's progress. They can help you track whether you're making the desired progress towards your goals and can also help you determine areas that need improvement.
Why is KPI necessary for every company?
  • KPIs are important because it gives you a value to compare against your current performance. KPIs clearly illustrate whether or not you are reaching your goals. Implementing KPIs in your company means you can set goals, devise a strategy to reach your goals, and evaluate your performance along the way.