24 HR Metrics That Can Make a Difference in Your Business Today

Numbers don’t lie. HR metrics give you key insights on how your business is doing.

What are Human Resource Metrics?

How do you quantify the costs and impact of employee programs and HR processes? By using Human Resource metrics. Employing human resource metrics in your business is a great way to measure the progress (or demise) of your HR actions. It can uncover your business’ strengths as well as its vulnerabilities — giving you much-needed information on areas that need focus, improvements, and capitalization.  HR metrics are priceless and most modern HR programs can help you seamlessly integrate these into your day to day HR functions.

Why HR Metrics are Important?

How well informed are you about your own business?

Whether your company is going to be successful or not depends on how you develop and utilize the effect of human resource metrics. A business, big or small, has a lot of things going on. Unfortunately, resources like time, money, and talent are finite. HR metrics can help a company focus its resources on what’s more important. It also helps drive improvements.

Metrics vary from one company to another. Whatever the analytics you are tracking, you must make sure that your metrics reflect and support your organization’s goals and strategies (i.e. marketing, finance, standards, customer requirements, safety, and competition.

In short, metrics will help tell your business:

  • Where it has been
  • Where it is going
  • When your business has reached its target
  • When something is going wrong

Good HR metrics will:

  • Drive overall performance
  • Give direction to the business
  • Help managers make informed decisions
  • Product good internal and external relations
  • Evolve with the business

Don’t know which metric to use? We’ve compiled the most common HR metrics that you can use in your business today. Read on below!

HR Metrics that Track Employee Performance and Productivity

1️⃣ Profit per Employee

To measure whether you are overstaffed or understaffed.

How to calculate:

 About 90 % of job candidates prefer a company that is managed by the principle of transparency. 

2️⃣ Health Care Costs per Employee

To give you an idea of how much of your company’s budget is going to your employees’ health insurance costs.

How to calculate:

 Health care costs per employee = Total health care costs / Number of employees signed up for health care 

3️⃣ Average Time until Pay Increase or Promotion

To help you measure the average time it takes an employee to receive a pay increase or promotion.

How to calculate:

 Average time until promotion = Date of pay increase or promotion – hire date 

4️⃣ Scheduling Match

Perfect for shift-based businesses like restaurants and retail shops, this metric can help you determine whether or not the number of hours worked is in line with the number of hours scheduled — giving you a measurement that relates to overstaffing and understaffing.

How to calculate:

 Scheduling match = Number of scheduled hours / Number of hours worked 

5️⃣ Billable Hours per Employee

Perfect for businesses that bill out to the client (i.e. marketing firms, law firms, project management firms, etc.). This metric helps you figure out whether your staffing is in line with your client needs or not.

How to calculate:

 Billable hours = Billable hours / Total hours worked 

6️⃣ Cost of HR per Employee

This efficiency metric refers to how much you pay your HR team for activities like recruiting, onboarding, and managing versus how many total employees your business has.

How to calculate:

 Cost of HR per employee = Total HR salary and benefits / Number of employees 

HR Metrics for Small Businesses

7️⃣ Revenue per Employee

To determine how valuable your employees are to your business.  This metric will help you justify the employment of your workers.

How to calculate:

 Revenue per employee = Total revenue / Total number of employees 

8️⃣ Employee Turnover

A perfect measure of how happy your employees in working with you. This number can give you insights into looming staffing or management issues.

How to calculate:

 Turnover rate = Number of employee terminations / Average number of employees 

9️⃣ Job Satisfaction Rate

Like a customer satisfaction survey, the job satisfaction rate can be determined using any kind of scale. The secret here is to compare your employees’ progress against a baseline to see if satisfaction has improved or not over a certain period.

How to calculate:

 Job satisfaction rate = Number of people who report being satisfied / Total number of employees 

1️⃣0️⃣ Length of Service

This is another measure of employee happiness. A good number means that your business is stable, your workers are happy and efficient, and you have lower hiring costs (since you don’t have a lot of employees to replace).

How to calculate:

 Length of service = (Today’s date – Employee’s hire date) ÷ 365 

1️⃣1️⃣ Absenteeism

Employees who have work, health, or home issues take time off more often. This makes absenteeism a great HR metric to track employee health and wellness. Normal absenteeism rates across industries are at 2.5%.

How to calculate:

 Absenteeism = Workdays missed / Total workdays scheduled 

1️⃣2️⃣ Overtime Percentage

Most businesses don’t want to pay overtime because they are more expensive. More employees on overtime can highlight some scheduling or staffing issues inside your company.

How to calculate:

 Overtime percentage = Overtime pay amount / Total payroll 

1️⃣3️⃣ Cost per Hire

One of the best HR metrics to determine how much you are paying to recruit, hire, and onboard new employees.

How to calculate:

 Cost per hire = All recruiting and HR staffing costs / Number of new hires 

HR Metrics for Employee Development

1️⃣4️⃣ Innovation

This is measured in terms of the number and quality of ideas. Innovation, as a metric, is a great way to track progress if you have a team dedicated to developing new products or better ways to do business.

How to calculate:

 Innovation = Number (or value) of successful product or process ideas / Total number of suggestions 

1️⃣5️⃣ Above Average Performance Management Ratio

Based on your performance review, this metric measure how many people are performing at a high level.

How to calculate:

 Above-average performance management ratio = Number of employees rated above average / All employees 

1️⃣6️⃣ Time to Productivity

Calculated as a time frame (days, weeks, or months). This management metric determines how long it takes a new hire to become 100% productive.

 Time to productivity = Date new hire hit the target (as defined in your performance management system) – New hire start date 

1️⃣7️⃣ Training ROI

This metric answers the question: “is our training worth it?”

How to calculate:

 Training return on investment (ROI) = Cost of employee training / Value of increased performance 

1️⃣8️⃣ Training Spend per Employee

Determines how much you are spending training your employees.

How to calculate:

 Training spend per employee = Total training costs divided by / Number of employees 

HR Metrics for Hiring  

1️⃣9️⃣ Employee Referral Program Success

For companies that use employee referral programs when recruiting, this the metric to go.

How to calculate:

 Employee referral program success = Number of referrals / Number of open jobs 

2️⃣0️⃣ New Hire Fail Rate

This determines how many employees leave after getting hired. You can measure this based on a certain time frame such as 120 days after hiring.

How to calculate:

 New hire fail rate = Number of new hires that quit or are fired / Total new hires in that time frame 

2️⃣1️⃣ Ghost Rate

This HR metric measures the number of job candidates who accepted the job offer but did not show up to work. Ideally, your ghost rate should be zero.

How to calculate:

 Ghost rate = Number of candidates who fail to show up on the first day / Total hires 

2️⃣2️⃣ Offer Acceptance Ratio

One of the simplest HR metrics that track how many job candidates accepted the offer versus how many rejected it.

How to calculate:

 Offer acceptance ratio = Number of offers accepted / Total job offers extended 


Annual Recruiting Costs

This metric measures the efficiency of your recruitment process — cost-wise. Recruitment costs also include the work hours of your HR team.

How to calculate:

 Annual recruiting costs = Total off all hiring expenses the year (software + advertising + fees) 

2️⃣4️⃣ Time to Hire

For some companies, the recruitment process can take too long. To save time and money, aim for a recruitment process that takes 4-6 weeks or less.

How to calculate:

 Time to hire = Start date – Date of the first interview 


Today, data is king. HR metrics provide valuable insight into your business’ strengths, key areas to focus, and weaknesses. Before deciding on what HR metrics to use for your business, ask yourself these questions first:

  • What am I measuring?
  • What outcome do I want?
  • What number do I want?

And don’t forget these methodologies when setting up your metrics:

  1. Identify what HR functions directly align with corporate strategy by assessing business requirements.
  2. Identify measurement areas. This is done by aligning business goals with HR objectives and actions.  From this, you will ascertain three-five KPI’s.
  3. Get the raw data, calculate and translate. Greater insight is achieved if you can segment the data by different dimensions (such as demographics, organization structure, functions, employment levels etc).
  4. Analyze the data, evaluate and report on the metric.

CakeHR can seamlessly integrate the metrics you’ve chosen into your various HR processes.

Want to check how you are doing?

The app’s HR metrics dashboard displays all the information you need so you can steer your business towards the right direction anytime.


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CakeHR is a one stop shop for your HR management needs. With attention to user experience & making the software easy to use yet packed with loads of features we strive to make your HR management as easy as a piece of cake!

Written By

Diana Korza

SaaS | B2B | HR | Sales