HR KPIs: examples and best practices

Les KPI RH (Key Performance Indicators applied to human resources) have become indispensable for any modern business. They make it possible to monitor indicators related to the performance, recruitment, training and management of employees. In a context where competitiveness also depends on the engagement and retention of talent, knowing how to set up relevant HR KPIs is a strategic skill.

A good follow-up of metrics HR helps to reduce turnover, to better exploit data and to guide decisions thanks to reliable information. HR dashboards are thus becoming essential tools for any organization that wants to optimize its human resources management strategy and practices.

Introduction to HR KPIs

What is an HR KPI?

One KPI RH is a monitoring indicator that makes it possible to measure a specific aspect of HR performance. Unlike a simple isolated number, it must be interpreted as part of a strategy and linked to the objectives set by theventure.

For example, knowing the turnover rate from one year to the next provides useful information. But it is by comparing this figure to other data (engagement rate, recruitment cost, level of training) that it becomes really relevant.

A good KPI HR must therefore be:

• accurate and measurable;
• relevant to the objectives set;
• monitored over time to analyze the evolution.

Importance of KPIs in human resources management

HR KPIs play a strategic role in resource management. They make it possible to objectify the role of HR, often perceived as intangible, and to demonstrate their impact on the performance of theventure.

They help to:

• manage HR actions based on concrete data;
• adjust decisions to meet the needs of employees;
• strengthen the effectiveness of HR teams and save time in monitoring indicators;
• Give managers a clear vision of priorities.

Take the example of a rising absenteeism rate. Without a KPI, the business can only see the problem. With indicators of HR performance, it can link this increase to specific causes: overwork, lack of recognition, lack of appropriate training programs. It then has concrete levers to act, for example by implementing a plan to improve the social climate or by investing in health prevention.

Examples of effective HR KPIs

Employee retention rate

The Retention rate Measures the proportion of employees who stay with the company over a given period of time. It is a informant key to loyalty and satisfaction.

A low rate often reveals commitment problems or a possible lack of evolution. On the other hand, a good result reflects a strong culture and effective HR policies. Organizations that follow this KPI adapt their actions to improve retention: recognition programs, training continuous, internal mobility.

Average recruitment time

The average recruitment time corresponds to the number of days required to fill a position. This HR KPI is essential because a delay that is too long leads to additional costs and reduces team productivity.

A company that Optimize this delay with the right tools and better management of applications, gains in efficiency and improves its employer image. The objective is not only to recruit more quickly, but to find the right balance between speed and quality of hires.

Absenteeism rate

The absenteeism rate relates the number of days of absence to the expected working time. This informant RH is indicative of the internal climate.

A high rate can be a sign of demotivation, health problems related to working conditions, or a lack of commitment. Followed regularly, it makes it possible to trigger corrective actions: well-being programs, workload adjustment, employee satisfaction surveys.

Cost of training

Measuring the cost of training per employee makes it possible to assess the investment made in skills development.

This HR indicator should be compared with the results obtained: improvement in performance, progression in the level of mastery, ability to occupy new positions. Well followed, it justifies the investment and proves the importance of training in HR strategy.

Internal mobility rate

The monitoring of internal mobilitye indicates the proportion of positions filled thanks to talent already present.

A good ratings is a sign of proactive career management and an environment that encourages development. This reduces recruitment costs and contributes to employee retention. In practice, companies that encourage internal mobility also benefit from better employee engagement, because they perceive real perspectives within the organization.

How to implement HR KPIs?

Establishing clear goals

An HR KPI only makes sense if it is linked to a specific objective. For example, reducing turnover by 10% in one year, improving the employee engagement rate, or even optimizing the average recruitment time.

These goals should be aligned with the company's overall strategy. They must also be SMART: specific, measurable, achievable, realistic and time-bound. This avoids multiplying unnecessary indicators and ensures effective monitoring.

Adapting KPIs to business needs

Every business has its priorities. A fast-growing startup will focus on the rate of new hires and the recruitment time. A large group will prefer to monitor the absenteeism rate, internal mobility and indicators of training.

The key is to adapt the HR dashboard so that it accurately reflects the organization's strategic and operational challenges. It also means regularly reviewing the KPIs selected, because needs change over time and the economic context.

Conclusion

HR KPIs are a powerful tool for transforming human resources management into a strategic function at the service of performance of the company.

Whether it is the retention rate, the average recruitment time, the absenteeism rate, the cost of training or internal mobility, each indicator provides key information.

By defining clear objectives, using adapted tools and adapting indicators to the real needs of the organization, HR is transforming their data into a real growth driver. Businesses that master their HR KPIs can not only improve their efficiency, but also increase the engagement and retention of their talent.

‍