KPIs for HR Manager

12 Important KPIs for HR Manager with Calculation Process

KPIs for HR Managers are measurable values that is used to evaluate the performances of HR manager or HR departments based on pre-defined organizational goals. HR managers KPIs are considered as KPIs of HR department. There are many KPIs for HR Manager to optimize their recruitment processes, employee engagement, turnover rate, cost of training, etc. The top 12 KPIs for HR Managers are mentioned here that every HR manager may use for getting optimum output.

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KPIs for HR Manager with Calculation Process

Absenteeism Rate:

It is a highly important employee engagement KPI for HR Manager and is usually calculated by dividing the number of total absent days by their total number of working days. Month-wise comparison of absenteeism rate should place in HR KPI dashboard; it will help HR Manager to achieve the departmental goal.

Calculation Formula:

Employee Absenteeism Rate = (total number of absent days / total number of working days) x 100


Average Stay Period:

This is one of the most important KPIs for HR Managers which help to know the average staying period of an employee in the company. It helps to measure employee satisfaction and employee engagement with the company. Dissatisfaction is an important cause of employee turnover occurs. If the staying period found longer then it will be better for your company’s return on the hiring and training investments process. High employee engagement predicts higher productivity and lower turnover.

Calculation Formula:

Average Stay Period = the Total number of days that X employees stayed in the company / the total number of employees in question.


Cost Per Hire:

This is a pretty straightforward KPI for HR Manager that measures the total invested amount of resources for each new employee hired. All kinds of advertisement costs, the time cost of recruiters, job portal fees, etc. will have to be included during the calculation of cost per hire. This cost is related to the company’s overall budget, so the company should strictly follow and maintain a lead time for each recruitment.

Calculation Formula:

Cost Per Hire= (total internal recruiting costs + external recruiting costs) / (total # of hires in a given time frame)


Turnover Rate:

The turnover rate is one of the major & critical KPIs for HR Managers that focuses on lost talent. The company should try to keep the talent turnover rate as low as possible for the junior staff, as they will be the most valuable resource in the future. A turnover rate analysis report helps the HR department to identify how many employees leave the organization in a certain period and need replacement.

Calculation Formula:

To start your employee turnover calculation, follow below formula.

Monthly Turnover Rate = (Total number of leavers in a month / average number of employees in a month) x 100.

To find out the average number of employees in a month, divide the summary of the total employees at the beginning of the month and at the end of the month by 2.


Abandonment Rate:

The abandonment rate is an intense KPI for HR Managers that helps to measure the average number of employees who leave the company within a certain period of time. This may be voluntary or not. This figure indicates the company’s success in attracting and retaining talent.

Calculation Formula:

Abandonment Rate = Number of employees leaving the company over a period of time / average number of employees in the company during the same period.


Employee Productivity:

Employee productivity rate is generally considered an important KPI for HR Manager or recruitment managers as it has a huge impact on profits. Productivity can be measured through this KPI for the individual, team, or even department. Measuring productivity accurately can ensure greater profit, increased employee motivation, and recognition.

Calculation Formula:

Employee Productivity = (Total output or sales volume in a month / Total Output).


Average Recruitment Time:

It’s a vital KPI for the HR Manager or HR department that is the average number of days it takes for a candidate to continue from applying for a position to accepting a position in your company. The length of the hiring process is directly tied to the candidate satisfaction metric. The lower the average recruitment time, the higher the performance of the recruitment process.

Calculation Formula:

Average Recruitment Time = Total # of days invested in a selection process/number of selection processes in question.


Overtime Hours:

Overtime hour is a great indicator considered a critical KPI for HR managers in many contexts. Higher overtime hours lower the organization’s economic growth. As a result, you need to increase efficiency to reduce overtime hours. Overtime hour is linked with a workload that may decrease employees’ motivation and satisfaction. The ultimate result will be high absenteeism and turnover rate.

 Calculation Formula:

Overtime Hours = Total number of extra hours worked by all employees / Total number of employees in question.


Recruiting Conversion Rate:

The recruiting conversion rate is an important HR performance metric or KPI for HR Manager that will help you to determine the efficiency of the selection process. This KPI measures the proportion of the total number of applicants that are actually recruited at the end of the process. The ultimate result will help you to optimize your recruitment process and also the cost associated with the recruitment process.

Calculation Formula:

Recruiting Conversion rate = (No. of candidates selected / Total No. of candidates) x 100.


Training Costs Per Employee:

The training cost is an important metric or KPI for HR Manager that helps organizations to find out how much money was invested for employees’ development. It may be for new hires or existing employees. For calculating training costs, you need to include instructor costs, facility costs, travel costs, equipment costs, living costs, food costs, and also include the loss of productivity. Here, loss of productivity means the loss of work of the employee due to his absence for the training purpose.

Calculation Formula:

Training Cost Per Employee is also known as TCPE which is calculated by dividing the total training cost by the number of trainees of the training session.

TCPE = Training Costs / Number of Trainees


Talent Satisfaction:

This is one of the KPIs for HR Managers who need to ensure for best output by the employees, especially young professionals. Besides on-time salary payment, HR managers have to take into consideration a good work-life balance, flexible working time models, occasional work in the home office, and social corporate culture. In order to identify and evaluate employees’ satisfaction, you should regularly conduct employee satisfaction surveys.


Salary Competitiveness Ratio:

Salary competitiveness ratio is the metric or KPIs for HR Manager offering a fair salary in line with the job market to retain talent with the company. This helps the company to sustain itself in the future.

Calculation Formula:

Salary Competitiveness Ratio = Average offered salary by the company / Average offered salary by an industry competitor.


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