Published on 9/12/2025
Human resources (HR) teams do not fail because of a lack of investment or willingness, but simply because they do not use key HR performance indicators to take concrete action.
In order to improve company performance and employee productivity, it is essential to measure HR indicators. These indicators also give HR teams more legitimacy and weight, as they are based on quantified KPIs. These measures are a real gold mine for companies, as they provide an overview of the strengths and areas for improvement in terms of HR policy. This enables the company to be more agile and quicker to readjust its strategy.
The first indicator is staff turnover. It shows who is leaving the company and why, enabling certain parameters to be readjusted in order to avoid repeated resignations linked to the same issue.
Productivity rates can be calculated per team or per person. They enable you to identify potential bottlenecks or productivity gaps on the one hand, and to pinpoint the best performers on the other.
The salary increase rate ensures remuneration that is more consistent with team dynamics and industry realities. Based on market salaries and employee loyalty, this method reduces absenteeism and turnover. It also rewards employee efforts, creating a virtuous circle.
The engagement score is measured using a survey whose response rate allows us to assess employees' motivation and alignment with the company's dynamics.
The training and development index reflects the company's investment in its employees' skills and helps identify the benefits of this investment.
Revenue per employee calculates a team's return on investment and its direct contribution to growth.
Absenteeism rates provide valuable indicators as they reflect motivation and well-being at work. They can also signal the onset of burnout or harassment, and thus help prevent performance declines.
The offer acceptance rate measures the EVP (Employee Value Proposition). It reflects the ratio between offers made and offers accepted, indicating the attractiveness of the company and the motivation of candidates to grow internally.
The recruitment timeframe evaluates the company's internal process and allows it to be optimised by identifying delays and unnecessary steps.
The cost of acquiring talent complements this indicator. It provides information on the cost of recruitment and therefore on the cost of team growth, enabling the financial aspect of the process to be optimised.
In summary, these indicators highlight the strengths and areas for improvement in HR policy. This policy becomes more factual and consistent with the real needs of the company, as it is based on figures rather than impressions. The HR budget and return on investment are thus justified, as the company knows precisely where resources are going and whether they are profitable.
| Metric | Explanation | Formula |
|---|---|---|
| Turnover Rate | Measures the percentage of employees leaving the company. | (Number of employees who left / Average number of employees) × 100 |
| Employee Productivity Rate | Measures employee efficiency. | Total production / Number of employees |
| Salary Increase Rate | Measures the average salary increase over a period. | (Total salary increase / Total payroll) × 100 |
| Employee Engagement Score | Measures employee motivation and involvement. | Sum of engagement survey scores / Number of respondents |
| Training Cost per Employee | Average amount spent to train each employee. | Total training cost / Number of trained employees |
| Revenue per Employee | Average revenue generated by each employee. | Total revenue / Total number of employees |
| Absenteeism Rate | Measures employee absence rate. | (Total number of absence days / Total number of working days) × 100 |
| Offer Acceptance Rate | Percentage of candidates accepting a job offer. | (Number of accepted offers / Number of extended offers) × 100 |
| Time to Fill | Average time to recruit for a position. | Total days to fill positions / Number of positions filled |
| Cost per Hire | Average cost incurred to recruit one employee. | (Total recruitment costs + Total onboarding costs) / Number of hires |
Reference: https://www.linkedin.com/company/hrdleaders/posts/?feedView=all, https://hrleaders.co/
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