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These indicators should be monitored carefully. They allow you to see how costly the hiring process is, what the typical average length of time employees work at your company, how satisfied and engaged your employees are, and how well they're progressing. By monitoring these metrics, you can significantly reduce employee turnover and loss of talent, thereby reducing costs and increasing productivity
Determining key HR performance indicators is necessary to achieve the maximum return on the company's human capital. In addition, they are indispensable for achieving the key goals of the HR department
Here is a list of the most common KPIs for HR
Measurement: What are we going to measure? This could be the average duration of the onboarding process for new employees or the absenteeism rate among staff
Purpose: KPIs help us achieve our goals, so we need to articulate them clearly. For example, reduce staff turnover by 5%
Source: From the beginning it is important to know where we will get the information to determine the KPIs. This could be a CRM or HR software
Frequency: It is necessary to determine the frequency of checking the indicators, for example, every month
In the process of tracking KPIs, the following aspects should be taken into account:
HR Key Performance Indicators (HR KPIs) are HR metrics which are used to determine how HR contributes to the company's business goals and contributes to its success. This means that HR KPIs measure how successfully HR is implementing the organization's HR strategy
2. KPIs and measuring an employee's impact and contribution to business growth
Employee satisfaction with training
Speed of new hire onboarding
Average length of service
Average time to select an employee