Important Human Resources Metrics

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Human resource teams play a vital role in the success of their business’ plans and objectives.  They recruit, train, and retain staff, measuring and evaluating them against metrics that align with the strategic goals of the organization. And with human capital being one of an organization’s largest expenses and contributors to its success, human resources must also be measured and evaluated against its own set of metrics to ensure optimal effectiveness.

The Importance of Measuring Success

If you want to concentrate in Human Resources Management, there are a few important things to keep in mind. Chief among them is measurement of success. There are many metrics that human resources departments can use to measure their effectiveness, spanning payroll, compensation, benefits, engagement, retention, training, and more.  But some measurements provide more insight into the health of an organization than others, and this can largely depend on the strategies and goals of the organization.  ERC identified four “crucial considerations” that human resources teams must consider when choosing which metrics to measure themselves by:

  • What metrics are most important to the organization?
  • What data needs to be gathered or tracked to calculate these metrics?
  • How will the data be analyzed and benchmarked?
  • How will the analysis be used for action planning, development/improvement, and problem solving?

The Metrics of HR Success

Some of the most helpful and common human resources metrics can indicate whether your organization is healthy or not. According to, these include:

  • Cost per hire – one of the most common metrics, this measures the cost of acquiring new talent.
  • Revenue per employee – this measures how much each employee earns your organization, on average.
  • Absence rate – by looking at how many days your employees miss work, you can help gauge overall employee satisfaction.
  • Benefit cost – a measure of what your benefits package costs per employee, which is included in total compensation.
  • Satisfaction – a more subjective measure and, therefore, more difficult to gauge, but employee satisfaction surveys can give insight into retention efforts.
  • Turnover – relatively straight-forward, this tells you how many employees leave the organization in a given year.
  • Tenure – conversely, tenure measures how long employees have stayed with the organization.
  • Turnover costs – an often surprising measure of how much it costs when you lose an employee, including separation costs, lost productivity, new hiring costs, and new training costs.
  • Time to fill – this measures the efficiency of your human resources department’s ability to recruit new talent to fill vacancies.

Maryville University offers MBA degrees with no GMAT or GRE required with a selection of ten concentrations, including human resources management. Students can prepare for their Senior Professional in Human Resources designation, with courses including human resources management, workforce management, and compensation and benefits.


Business Wire – Basic and Meaningful Human Resource Metrics Webinar – Research and Markets

ERC – 20 Common HR Metrics and their Formulas

Unicorn HRO