KPIs for HR Manager
KPIs for HR Manager

KPIs for HR Manager are measurable values that helps in tracking pre-defined organizational goals of human resources management. KPIs help HR department to optimize their recruitment processes, employee engagement, turnover rate, cost of training etc. Top management’s expectations for HR professionals are continuously increasing. As a result, top 12 KPIs for HR Manager are as below that every HR manager should use for getting optimum output.

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Absenteeism Rate:

It is a highly important employee engagement KPI for HR Manager and usually calculated by dividing the number of working days in which the employee was absent by their total number of working days. It directly illustrates employee’s motivation and engagement in his work. This information helps in predicting absences and detecting operational problems. Month wise comparison of absenteeism rate should place in HR KPI dashboard; it will help HR Manager to achieve departmental goal.

Calculation Formula:

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


Average Stay Period:

This is one of the important KPIs for HR Manager which tracks the average period an employee stays with the company. It helps to measure employee satisfaction and employee engagement with the company. Employee satisfaction is measured through employee attitude and engagement surveys. Dissatisfaction is an important cause for which employee turnover occur. If staying period found longer then it will be better for your company’s return on hiring and training investments process. High employee engagement predicts higher productivity and lower turnover.

Calculation Formula:

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


Cost Per Hire:

This is a pretty straight forward KPIs for HR Manager that measures total invested amount of resources for each new employee hired. During calculation, all costs of recruitment (manual advertisement cost, time cost of recruiters, job portal’s fees etc.) will be included. This cost is related with company’s overall budget, so 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 Manager that focuses on lost talent. Company should try to keep the talent turnover rate as low as possible for the junior staff, as they will be most valuable resource in the future. Turnover rate analysis report helps HR department to identify how many employees leave organization in a certain period and need replacement.

Calculation Formula:

To start your employee turnover calculation, follow bellow formula.

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

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


Abandonment Rate:

The abandonment rate is an intense KPIs for HR Manager that helps to measure the average number of employees who leave company within a certain period of time, whether they do so voluntarily or not. This figure indicates company’s success on attracting and retaining talent.

Calculation Formula:

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


Employee Productivity:

Employee productivity rate generally considered as an important KPIs for HR Manager or recruitment manager as it has a huge impact on profits. You can track productivity per individual, team, or even department. The higher this ratio, the better it is for the company. 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 KPIs for 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 hiring process is directly tied to 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 processes / number of selection processes in question.


Overtime Hours:

Overtime hour is a great indicator considered as critical KPIs for HR Manager on many contexts. High overtime hours can directly affect organization’s economic growth. As a result, you need to increase the efficiency to reduce overtime hours. Overtime hour is linked with workload that may decrease employee’s motivation and satisfaction. 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 KPIs for HR Manager that will help you to determine the efficiency of the selection process. This KPI measures the proportion of total number of applicants that are actually recruited at the end of the process. 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:

Training cost is an important metric or KPIs for HR Manager that helps organization to find out how much money was invested for employees’ development. It may be for the new hires or existing employees. For calculating training cost, 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 through 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 Manager which need to ensure for best output by the employees, especially for young professionals. Besides on time salary payment, HR managers have to take in consideration regarding 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 survey.


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 company to sustain in future.

Calculation Formula:

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

Above are the KPIs for HR Manager that every HR Manager must know and implement for getting optimum result. Functions of HR department need to be linked with KPIs for HR Manager for achieving ultimate organizational goals.


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