8 KPI Metrics for HR Managers

Tamar Bosikashvili
2 days ago
3 min read

In today’s fast-changing business environment, HR has become one of the most strategic functions in any company. That’s why it’s crucial for HR professionals to make decisions backed by accurate data.

The best way to achieve this is through Key Performance Indicators (KPIs). These metrics are the mirror of your HR function’s effectiveness. Regularly tracking KPIs is essential to building a people-centered, stable, and results-oriented organization.

Core HR Management KPIs:

🔸 Employee Turnover Rate

Indicates employee retention and workforce stability.

🔸 Employee Engagement Score Reflects how motivated, innovative, and productive your workforce is.

🔸 Absenteeism & Tardiness Rates

Help identify issues with discipline and operational continuity.

🔸 Time to Hire

Shows how efficient and coordinated your recruitment process is.

🔸 Time to Productivity

Measures how fast new hires adapt and start performing.

🔸 Training ROI (Return on Investment)

Shows how effective your learning and development programs are.

🔸 Open Positions Rate

Indicates how well your hiring and staffing strategies are working.

🔸 HR Process Error Rate

Measures the accuracy and automation level of HR operations.

Employee Turnover Rate

This KPI shows how stable your workforce is. A high turnover rate may signal systemic management issues or a need for more mobility.

Formula: Turnover Rate = (Number of employees who left during the period ÷ Average number of employees) × 100

Benchmark: 10–15% annually is considered healthy. Over 20% requires attention.

Engagement Score

This metric reflects employee motivation, satisfaction, and psychological commitment to the company. High engagement levels drive productivity and innovation. Formula: Engagement Score = (Number of engaged employees ÷ Number of survey respondents) × 100

Benchmark: 70–75% indicates high engagement. Below 50% is considered high risk.

Absenteeism & Tardiness Rates

These rates reflect employee discipline and the continuity of work processes. They can point to issues in company culture or employee health. Absenteeism Formula: Absenteeism Rate = (Total missed workdays ÷ Total scheduled workdays) × 100

Benchmark: 1.5–3% monthly. Above 5% may signal underlying problems.

Tardiness Formula: Tardiness Rate = (Number of late arrivals ÷ Total workdays) × 100

Benchmark: Below 2% is considered acceptable.

Time to Hire

This measures the time it takes to fill an open position. A faster process means less resource waste and better workforce planning. Formula: Time to Hire = (Total number of days to hire ÷ Number of hires)

Benchmark: 24–42 days is standard. Technical roles may take longer.

Time to Productivity

Indicates how long it takes for a new employee to reach full performance. It reflects the quality of onboarding and internal processes. Formula: Time to Productivity = (Total days to reach full performance ÷ Number of new employees)

Benchmark: 60–90 days, depending on role complexity and onboarding structure.

Learning & Development

This KPI shows whether training and development efforts are improving employee competencies and driving business results. Forumula: Training ROI = ((Benefit – Training cost) ÷ Training cost) × 100

Benchmark: 200–300% is considered strong. A negative ROI points to ineffective investment.

Open Positions Rate

Indicates the share of open vacancies compared to total roles. It reflects recruitment speed and internal workforce planning capacity. Formula: Open Positions Rate = (Number of open positions ÷ Total company positions) × 100

Benchmark: 5–10% suggests healthy recruiting activity. More than 15% indicates a possible resource shortage.

HR Process Error Rate

This metric shows the number of administrative mistakes in HR processes like documentation, payroll, and time tracking. It reveals how automated and standardized your processes are.

Formula: HR Error Rate = (Number of HR errors ÷ Total number of HR processes) × 100

Benchmark: Below 1% is considered a sign of well-automated and efficient systems.

How Aisitec HR Helps Monitor These KPIs

The Aisitec HR platform includes all the functionality HR teams need to track KPIs and generate real-time insights:

🔸 Automated attendance tracking

🔸 Analytics and reporting with a user-friendly interface

🔸 360° feedback module for measuring engagement and development

🔸 Structured onboarding to reduce ramp-up time

🔸 Digitized document management to speed up hiring processes

With digital HR modules, your team can focus on what matters most—people and performance.

Learn how Aisitec HR can become a daily part of your HR strategy at: www.aisitec.com