Human resources KPIs: 10 indicators for your HR strategy

KPIs(Key Performance Indicators) in human resources are key indicators that enable you to measure and analyze your company's performance in terms of human capital management. They help you make strategic decisions to improve the effectiveness of your HR actions. In this article, discover the 10 essential indicators for steering your HR strategy and optimizing your organization's performance. To make managing your human resources easier, explore our HR software.

What are the main HR KPIs?

The main HR KPIs fall into several categories, including those related to recruitment, employee satisfaction and staff stability. Here is a detailed presentation of these indicators.

What are the recruitment KPIs?

Recruitment-related indicators enable you to measure the efficiency of your recruitment processes and identify areas for improvement. They include :

Hiring rate

The hiring rate corresponds to the number of new employees recruited over a given period. It is calculated by dividing the number of hires by the number of positions to be filled, then multiplying by 100 to obtain a percentage. This indicator helps you measure the effectiveness of your recruitment process.

Breakdown of trial period

This KPI measures the number of contracts broken during the trial period. A high rate may indicate problems in the candidate selection or integration process. It is calculated by dividing the number of trial period terminations by the total number of hires, then multiplying by 100.

Cost per recruitment

The cost per recruitment represents the total cost incurred to recruit a new employee. It includes the cost of advertising vacancies, recruitment agency fees, interview costs, etc. This indicator helps you optimize your expenses and improve the profitability of your HR department.

Time limit for appeal

Fill time is the average number of days it takes to fill a vacancy. A delay that is too long can have an impact on your company's productivity. This indicator enables you to identify obstacles in your recruitment process and correct them.

Retention rate

The retention rate measures a company's ability to keep its employees over a given period. A high rate indicates high employee satisfaction and commitment, while a low rate may signal management or social climate problems.

Internal mobility rate

This rate measures the percentage of employees who progress within the company to new positions or responsibilities. A high level of internal mobility may reflect effective career management and the valuing of internal skills.

What are the KPIs for employee satisfaction?

Measuring employee satisfaction is essential to retaining your talent and improving the social climate within your organization. Here are some key indicators:

Satisfaction rate

Employee satisfaction is generally measured via internal surveys. It reflects the level of employee well-being and commitment. A high rate is a sign of a good working environment and good personnel management.

Training participation rate

This rate indicates the percentage of employees who have taken part in training over a given period. It enables you to assess employees' commitment to their professional development and the effectiveness of your training policy. Training time spent per employee is also a valuable indicator for measuring investment in skills development.

Internal promotion index

The internal promotion index measures the number of positions filled internally in relation to the total number of promotions. A high index reflects good career management and the development of in-house skills, reinforcing your company's employer brand.

What indicators does the HR manager use to measure staff stability?

Staff stability is a major challenge for human resources. The following indicators are essential for measuring it:

Turnover rate

The turnover rate corresponds to the rate of staff turnover. It is calculated by dividing the number of departures by the average headcount, then multiplying by 100. A high turnover rate may indicate problems with satisfaction or working conditions, affecting productivity and the company's social balance sheet.

Turnover rate

The turnover rate measures the number of job changes or departures within the company. A high turnover rate may indicate instability within the organization, requiring action to improve employee retention.

Recruitment rate

The recruitment rate measures the number of new hires in relation to the company's total workforce. A high recruitment rate may reflect rapid growth or high staff turnover.

What are KRAs and KPIs for an HR manager?

KRAs(Key Result Areas) and KPIs are two complementary concepts in human resources management.

KRAs designate the key areas in which an employee must achieve results. They are defined according to the company's strategic objectives. The KPIs, for their part, are the indicators used to measure performance in these areas.

What is the KRA formula? KRAs are not calculated using a mathematical formula. They are defined qualitatively according to the responsibilities and objectives assigned to each position.

How can you improve your HR KPIs?

Here are a few ways to improve your HR KPIs:

• Analyze data: Use HRIS software to collect and analyze your HR data efficiently. A well-designed dashboard can help you track your key indicators in real time.
• Set clear objectives: Define SMART (Specific, Measurable, Achievable, Realistic, Time-bound) objectives to guide your actions. These objectives must be aligned with your overall strategy and human resources needs.
• Involve managers: Encourage managers to monitor indicators and implement improvement plans. Decision-making based on concrete data improves the effectiveness of HR actions.
• Employee training: Invest in training to develop your employees' skills. Good training time contributes to productivity and career management.
• Improve working conditions: Work on the quality of working life to increase satisfaction and commitment. Optimal working conditions reduce turnover and improve productivity.
• Optimize tools: Use dedicated tools to automate repetitive tasks and reduce HR management costs. High-performance HRIS software can greatly improve your human resources management.
• Ensure good communication: Set up effective communication channels to encourage the exchange of information and strengthen team cohesion. Good communication helps to ensure staff stability and improve the social climate.
• Keep abreast of trends: Stay abreast of human resources trends to adapt your strategies and stay competitive. Tracking trends helps you anticipate needs and optimize career management.
• Measure regularly: Regularly analyze your KPIs to monitor performance trends and adjust your actions accordingly. A summary dashboard makes monitoring easy.
• Invest in technology: Adopt advanced technologies to improve HR management and increase your team's productivity. The use of modern HRIS software is an essential pillar of effective HR management.

By adopting a proactive approach, you can optimize your KPIs and boost your organization's performance.

But why use KPIs in human resources at all?

Human resources KPIs are essential for :

• Make informed decisions: They provide objective information to guide your strategies.
• Measuring effectiveness: They help you assess the effectiveness of your HR policies and identify areas for improvement.
• Anticipate needs: By monitoring trends, you can anticipate staffing and skills requirements.
• Improve employee satisfaction: By monitoring satisfaction indicators, you can take action to improve the social climate.
• Optimize costs: KPIs help you control payroll costs and HR processes.
• Tracking progress: They enable you to monitor the progress of your HR initiatives and adapt your strategies according to the results obtained.
• Strengthen career management: By assessing performance and training needs, you can better manage your employees' careers.
• Efficient management: KPIs provide an overview of human resources management, making it easier to steer your HR strategy.

In short, HR KPIs are essential tools for effectively managing your human resources and achieving your strategic objectives.

Conclusion

Human resources KPIs are essential indicators for measuring your company's performance in terms of personnel management. By using them wisely, you can improve your HR strategy, optimize your processes and promote the development of your human capital.

Consider equipping yourself with high-performance HRIS software to facilitate the collection and analysis of your data. To find out more about digitizing your HR processes, read our article.

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