Key Performance Indicators examples for Human Resources

The articles provides key performance indicators examples for human resources areas such as – Recruitment, Performance Management System, Learning & Development, Talent Management etc. You can also download the HR KPI template which I have designed in excel.

KPI for Recruitment Manager

Recruitment is an important part of human resources. Following are the key performance indicators examples for recruitment –

KPI 1 – Average cost per hire

Explanation –

Recruitment & selection has a considerable cost associated with it. Organizations always prefer that Recruitment should be done within budget. To meet the set target for average cost per hire, the recruitment manager has to ensure that recruitment is done in a cost effective way.

KPI 2 – TAT or Turn around Time

Time take to fill a vacant position is called the Turn Around Time (TAT) or the cycle time of recruitment.

Explanation –

Organizations always want the positions to be filled within time so that the business does not suffer due to loss of opportunity due to lack of manpower.  This KPI will have a target as number of days for e.g. –

Turn around time for all Mid Management positions should be less than 30 days.

KPI 3 – Quality of Hire

Quality of Hire can be measured in different ways. Following are two commonly used KPIs for quality of Hire –

Percentage of new employees who successfully complete their probation period.

Percentage of newly recruited employees who get a performance rating of 4 or above, out of 5. (In their first appraisal after recruitment)

Explanation –

The quality of recruited candidates is very important so that the selected candidate can effectively contribute to the organization. Post-recruitment performance of the new recruits shows the quality of the recruitment.

KPI for Learning & Development (L&D) Manager

Through Learning & Development, employees get knowledge, get new skills and learn/improve competencies.

KPI 1 – No. of Mandays of Training

This KPI focuses on the total no. of days in a particular period. The target for a small company can be something like –

Ensure 1000 mandays for the year, or –

Ensure training of 2 days/ employee (i.e. average training days)

KPI 2 – Training within Budget / Training cost per employee

This KPI focuses on adherence to the budget set for the Training for the specified year/ period.

KPI 3 –  Training Effectiveness Score

This KPI focuses on Training effectiveness. Training effectiveness can be measured through parameters such as – Training Feedback, Change in Behaviour of the participants, Results of the training, ROI of the training. Following are some examples –

Ensure average score of 4+ (out of 5) in the Training feedback by participants.

KPI for HR Operations

Let us now look at key performance indicators examples for human resources Operations. HR Operations may include a lot of HR related processes depending on the organization and its HR structure.

Following are some examples of KPIs in HR Operations –

KPI 1 – Attrition Rate (Turnover Rate )

This KPI focuses on reduction of Annualized voluntary employee turnover rate.

If the HR Manager gets a target of reduction of attrition rate, he/she has to focus on initiatives which can increase retention of employees.

KPI 2  – Employee Satisfaction Survey Score

Organizations generally conduct an annual survey to measure employee satisfaction. HR Team has an important role in ensuring employee satisfaction and senior HR employees are give the target to improve employee satisfaction and employee engagement.

KPI 3 – Zero non compliance in Labour Laws

Every country has their own laws related to employment. Adherence to the employment related laws is generally handled by the HR Team.

Zero non-compliance is a KPI which many organizations use for the HR Manager so that the organization does not get into any labour law non-compliance related legal matter.

Following are some more commonly used key performance indicators examples for human resources department

  • Compensation cost as a percentage of revenue
  • Female to male ratio (to promote diversity)
  • Ratio of internal versus external training
  • Absenteeism
  • Accidents in the workplace
  • Turnover Rate of High Performers

What do you think about these HR KPI examples? What HR key performance indicators do you use? Let us know your views.

 

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