{"id":62790,"date":"2026-03-13T17:11:57","date_gmt":"2026-03-13T17:11:57","guid":{"rendered":"https:\/\/www.altamirahrm.com\/?p=62790"},"modified":"2026-03-13T17:11:58","modified_gmt":"2026-03-13T17:11:58","slug":"hr-kpis","status":"publish","type":"post","link":"https:\/\/www.altamirahrm.com\/en\/blog\/hr-kpis","title":{"rendered":"HR KPIs: Key Metrics, Examples, and Benefits"},"content":{"rendered":"\n<p>Data plays an increasingly central role in business success.<\/p>\n\n\n\n<p>That said, not all data is equally useful. For HR teams, the real challenge is identifying the metrics that matter most and tracking them consistently in line with company strategy.<\/p>\n\n\n\n<p>In this article, we\u2019ll look at what an <strong>HR KPI <\/strong>is, how it differs from an OKR, and the <strong>value<\/strong> it can bring to a business. We\u2019ll also share a detailed list of key metrics companies can use, along with guidance on the tools best suited to organize and manage them.<\/p>\n\n\n\n<p><strong>If you\u2019re trying to understand which HR KPIs should take priority in your business, this is the right place to start.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.altamirahrm.com\/en\/blog\/hr-kpis\/#What_Is_a_KPI\" >What Is a KPI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.altamirahrm.com\/en\/blog\/hr-kpis\/#How_KPIs_Differ_from_OKRs\" >How KPIs Differ from OKRs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.altamirahrm.com\/en\/blog\/hr-kpis\/#The_Benefits_of_Using_HR_KPIs\" >The Benefits of Using HR KPIs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.altamirahrm.com\/en\/blog\/hr-kpis\/#Main_HR_KPIs_Formulas_Examples_and_Benchmark_Values\" >Main HR KPIs: Formulas, Examples, and Benchmark Values<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.altamirahrm.com\/en\/blog\/hr-kpis\/#FAQ_Frequently_Asked_Questions_about_HR_KPIs\" >FAQ: Frequently Asked Questions about HR KPIs<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_KPI\"><\/span>What Is a KPI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A KPI, or <strong>Key Performance Indicator<\/strong>, is a metric used to track performance in any area of the business. Its purpose is to measure, in quantitative terms, how a specific activity is performing against a defined goal.<\/p>\n\n\n\n<p>In practical terms, KPIs turn raw data into actionable information, making it easier to improve processes and make better decisions.<\/p>\n\n\n\n<p>To deliver real value for HR and for the business more broadly, HR KPIs need to meet a clear set of criteria summarized by the <strong>SMART<\/strong> framework: Specific, Measurable, Achievable, Relevant, and Time-bound.<\/p>\n\n\n\n<p>In other words, they need to be <strong>specific, measurable, realistic, relevant to the business, and tied to a defined timeframe<\/strong>.<\/p>\n\n\n\n<p>One example of an HR KPI would be reducing average time to hire from 37 days to 35 over the course of 2025 through a series of initiatives designed to speed up the recruiting process.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_KPIs_Differ_from_OKRs\"><\/span>How KPIs Differ from OKRs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In recent years, some companies have started replacing KPIs with <strong>OKRs, or Objectives and Key Results<\/strong>.<\/p>\n\n\n\n<p>The distinction is subtle, but important. <a href=\"https:\/\/www.altamirahrm.com\/en\/blog\/okrs-for-business-growth\">OKRs<\/a> are more <strong>forward-looking performance management tools<\/strong>. They push organizations to define an <strong>ambitious objective<\/strong> \u2014 often one that is not strictly measurable on its own \u2014 and then identify a <strong>set of quantitative key<\/strong> <strong>results<\/strong> that make progress toward that objective measurable.<\/p>\n\n\n\n<p>For example, a company may set the objective of building a culture of continuous learning. The related key results might include increasing course completion rates by 10% and course enrollment rates by 15%.<\/p>\n\n\n\n<p>Put simply, <strong>HR KPIs are used mainly to measure the current state of performance<\/strong>, while OKRs are designed to shape future performance.<\/p>\n\n\n\n<p>It is also worth noting that, at present, OKRs are still not widely adopted among Italian companies.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Benefits_of_Using_HR_KPIs\"><\/span>The Benefits of Using HR KPIs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Thanks in part to the spread of AI and increasingly sophisticated management software, <strong>companies in Italy and beyond<\/strong> <strong>are relying more and more on data to guide decision-making<\/strong>.<\/p>\n\n\n\n<p>Businesses are investing heavily in collecting, monitoring, and analyzing information that can influence decisions at every level, reducing the risks that come with guesswork and poorly informed choices.<\/p>\n\n\n\n<p>HR leadership and people management can benefit just as much from this approach. <strong>Using KPIs to measure the effectiveness of HR processes gives companies a clearer view of how people management supports business performance.<\/strong><\/p>\n\n\n\n<p>HR KPIs help organizations measure their people processes more effectively and gain greater:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Objectivity<\/strong>. When analysis is based on data rather than personal impressions, decisions become more grounded, more defensible, and easier for both leadership and employees to understand.<\/li>\n\n\n\n<li><strong>Transparency<\/strong>. Results can be shared more easily across the organization, making HR\u2019s contribution to business success more visible and measurable.<\/li>\n\n\n\n<li><strong>Focus<\/strong>. Defining, tracking, and analyzing KPIs helps teams stay focused on a limited number of strategic priorities instead of dispersing effort across low-impact activities.<\/li>\n\n\n\n<li><strong>Prevention<\/strong>. Some HR KPIs make it possible to identify potential issues early, whether related to turnover, skills gaps, or other emerging risks.<\/li>\n\n\n\n<li><strong>Awareness<\/strong>. A clear view of results makes it easier to identify strengths, weaknesses, and opportunities for improvement.<\/li>\n\n\n\n<li><strong>Collaboration<\/strong>. Transparent HR KPIs make it easier for HR to work closely with other business functions and build a more data-driven dialogue across the organization.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_HR_KPIs_Formulas_Examples_and_Benchmark_Values\"><\/span>Main HR KPIs: Formulas, Examples, and Benchmark Values<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The metrics HR departments can track are virtually endless. The right ones depend on a variety of factors, including the company\u2019s industry, size, stage of growth, and strategic priorities.<\/p>\n\n\n\n<p>Below is a list of <strong>20 widely used HR KPIs<\/strong>. For each metric, we provide a description, the formula used to calculate it, a practical example, and a benchmark value that can help you interpret your results.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Employee Retention Rate<\/h3>\n\n\n\n<p>This metric measures the percentage of employees who remain with the company over a given period. It provides insight into overall satisfaction and engagement within the workforce.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Subtract the number of new hires from the number of employees at the end of the year. Divide the result by the number of employees at the beginning of the year, then multiply by 100 to obtain a percentage.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If there are 150 employees at the beginning of the year, 20 leave the company, and 10 new employees are hired, 140 employees remain at the end of the year. Retention rate = (140 \u2013 10) \u00f7 150 \u00d7 100 = 86.7%<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. This figure varies widely by industry but generally tends to be around 90%.&nbsp;&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Resume Source<\/h3>\n\n\n\n<p>This KPI identifies <strong>how much each<\/strong> <strong>sourcing channel<\/strong> \u2014 such as Indeed, LinkedIn, recruiting agencies, or employee referrals \u2014 <strong>contributes to recruiting efforts<\/strong>. Understanding this distribution helps companies make more informed decisions about where to invest their recruiting budget.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of resumes received from a given source by the total number of resumes received, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If the company receives 90 resumes in total, with 27 coming from LinkedIn and 36 from Indeed, the contribution of those channels is 30% and 40%, respectively.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. There are no universal benchmarks. In Italy, however, Indeed and LinkedIn currently perform best for many recruiting searches, particularly when supported by paid promotion.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Overtime Rate<\/h3>\n\n\n\n<p>This metric measures the <strong>proportion of overtime hours compared with the total <\/strong>number of hours worked across the company. It can help identify excessive workloads, operational inefficiencies, or unexpected labor costs.<\/p>\n\n\n\n<p><strong>How to calculate it. <\/strong>Divide the number of overtime hours recorded by the <a href=\"https:\/\/www.altamirahrm.com\/en\/software\/attendance-management-software\">time-tracking system<\/a> by the total number of hours worked.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If employees worked a total of 10,000 hours, of which 800 were overtime, the overtime rate is 8%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. In most organizations, it is advisable to keep overtime below 10\u201315%. In reality, some industries regularly exceed this threshold.\u00a0<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Average Labor Cost per Employee<\/h3>\n\n\n\n<p>This KPI indicates <strong>how much the company spends, on average, to employ each worker<\/strong>. It includes salaries, benefits, payroll taxes, and contributions. The metric is also useful for financial analysis and benchmarking across organizations.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide total compensation costs by the total number of employees.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If a company spends \u20ac5 million per year to employ 100 people, the average cost per employee is \u20ac50,000.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. According to a <a href=\"https:\/\/www.istat.it\/it\/files\/2022\/12\/Struttura-del-costo-del-lavoro-in-italia-2020-1.pdf\">2020 Istat report,<\/a> the average labor cost per employee in Italy is \u20ac41,081.<\/p>\n\n\n\n<p>\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Turnover Rate<\/h3>\n\n\n\n<p>This metric measures the <strong>percentage of employees who leave the company<\/strong> during a specific period. High turnover may indicate problems related to company culture, employee satisfaction, or workplace conditions.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of employees who left the company by the average number of employees during the same period. Multiply by 100 to obtain a percentage.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If the company loses 12 employees during the year and the average workforce is 100 people, the turnover rate is 12%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. A healthy turnover rate typically ranges between 10% and 15%. However, several studies suggest that the average rate across Italy and Europe now exceeds 16%.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Time to Fill<\/h3>\n\n\n\n<p>This recruiting KPI measures the <strong>average time between publishing a job vacancy and selecting a candidate<\/strong>. Along with time to hire \u2014 which starts when candidate screening begins \u2014 it helps evaluate the efficiency of the hiring process.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Add together the number of days required to complete each hire, then divide by the total number of hires.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If five hires are completed in 30, 40, 35, 25, and 20 days, the average time to fill is 30 days.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. An <a href=\"https:\/\/www.altamirahrm.com\/it\/blog\/time-to-hire\">older Gallup study<\/a> estimated the average time to hire in Italy at 36 days. In practice, the metric varies significantly depending on the role, industry, and geographic location. Most organizations see averages between four and eight weeks.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Cost per Hire<\/h3>\n\n\n\n<p>This KPI measures <strong>the total cost associated with hiring a new employee<\/strong>. It includes expenses related to job advertising, interviews, candidate selection, and the use of recruiting tools such as an <a href=\"https:\/\/www.altamirahrm.com\/en\/software\/recruitment-software\">Applicant Tracking System (ATS)<\/a>.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the total cost of recruiting activities by the number of hires made during the period.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If a company spends \u20ac42,000 to complete 10 hires, the cost per hire is \u20ac4,200.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. Typically between 10% and 25% of the candidate\u2019s gross annual salary. Costs may increase significantly when external recruiting agencies are involved.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Employee Satisfaction Index (Employee Net Promoter Score)<\/h3>\n\n\n\n<p>This survey-based metric measures <strong>employees\u2019 overall satisfaction<\/strong> and their willingness to recommend the company as a place to work. Employees are asked to rate, on a scale from 0 to 10, how likely they are to recommend the company to someone else. Respondents who select 0\u20136 are considered detractors, those who select 7\u20138 are passives, and those who select 9\u201310 are classified as promoters.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Borrowed from marketing, the metric is calculated by subtracting the percentage of detractors from the percentage of promoters.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 50% of respondents are promoters and 20% are detractors, the company\u2019s eNPS score is +30.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. An eNPS above 10 is generally considered positive. Scores above 30 are typically regarded as excellent.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Absenteeism Rate<\/h3>\n\n\n\n<p>This HR KPI measures the <strong>percentage of employee absences relative to total working time<\/strong>. It can provide useful insights into employee wellbeing, engagement, and overall workplace health.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of hours or days of absence by the total number of workable hours or days, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If an employee is absent for 8 hours out of 160 hours in a month, the absenteeism rate is 5%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. According to <a href=\"https:\/\/www.assolombarda.it\/centro-studi\/indagine-sul-lavoro-2024-nota-confindustria\">a recent Confindustria report<\/a>, absenteeism in Italy averages around 6.6%.<\/p>\n\n\n\n<p>\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Productivity per Employee<\/h3>\n\n\n\n<p>This metric measures <strong>how much value employees generate for the business<\/strong> and helps assess operational efficiency.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide company revenue by the total number of employees.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If a company generates \u20ac2 million in revenue with 40 employees, productivity per employee equals \u20ac50,000.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. This metric varies widely depending on the industry.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">11. Course Completion Rate<\/h3>\n\n\n\n<p>This metric measures the <strong>percentage of employees who successfully complete their training programs<\/strong>. It is commonly used to evaluate the effectiveness of a company\u2019s learning and development initiatives.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of employees who completed their training courses by the total number of employees enrolled in those courses, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 85 employees complete training out of 100 participants, the completion rate is 85%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. A completion rate between 80% and 90% is typically considered positive.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">12. Internal Promotion Rate<\/h3>\n\n\n\n<p>This KPI measures the <strong>percentage of roles filled through internal promotions<\/strong> rather than external hires. It reflects a company\u2019s ability to develop and advance internal talent.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of internal promotions by the total number of promotions, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example.<\/strong> If 8 out of 20 promotions involve internal candidates, the internal promotion rate is 40%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. There are limited studies on this metric. A higher rate often reflects strong employee engagement and retention, as well as lower recruiting costs. However, relying too heavily on internal promotions can sometimes lead to stagnation and a lack of new perspectives.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">13. Gender Ratio<\/h3>\n\n\n\n<p>This metric measures the <strong>distribution of employees across genders<\/strong> and helps organizations monitor progress toward gender equality. The same approach can also be used to measure diversity by analyzing the representation of underrepresented groups.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of employees belonging to a given gender \u2014 for example, women \u2014 by the total number of employees, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 60 out of 200 employees are women, the percentage is 30%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. Ideally, the workforce would be evenly split at 50% men and 50% women. Achieving this balance remains challenging in many organizations, particularly in leadership roles, but it is a goal many companies strive toward.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">14. Source of Hires<\/h3>\n\n\n\n<p>Unlike the resume source KPI, this metric tracks <strong>which recruiting channels produced the candidates who were actually hired<\/strong>. Rather than focusing on the volume of applications, it evaluates the effectiveness of different channels in delivering qualified candidates who match the roles being filled.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of hires coming from a specific channel by the total number of hires, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If InfoJobs accounts for 5 hires out of 25 total hires in a year, the channel contributes 20% of total hires.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. There is no universal benchmark. The most useful approach is to compare the source of candidates with the source of hires to gain a clearer view of the effectiveness of recruiting channels.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15. Six-Month Attrition Rate<\/h3>\n\n\n\n<p>This KPI measures the <strong>percentage of employees who leave the company within their first six months<\/strong>. It helps assess the effectiveness of onboarding as well as the alignment between new hires and the company\u2019s culture.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of employees who leave within six months of being hired by the total number of hires during the same period, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 5 out of 40 new hires leave within the first six months, the attrition rate is 12.5%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. Companies should generally aim to keep this rate below 10%.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">16. Average Performance Rating<\/h3>\n\n\n\n<p>This metric measures the <strong>overall performance of the workforce relative to the objectives assigned to employees<\/strong>. It is useful for evaluating the effectiveness of performance management processes and identifying areas for improvement.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Add together the performance scores received by employees during performance reviews and divide the result by the number of employees evaluated.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If the performance scale runs from 1 to 5 and the sum of the scores for 100 employees is 430, the average rating is 4.3.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. On a scale from 1 to 5, organizations typically aim for an average score above 3.5.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">17. Employee Engagement Rate<\/h3>\n\n\n\n<p>This <a href=\"https:\/\/www.altamirahrm.com\/it\/blog\/hr-analytics-gestione-personale\">HR analytics<\/a> KPI measures the <strong>level of employee engagement<\/strong>. It can be calculated either through employee surveys or by measuring participation in company events and engagement initiatives such as training sessions or team-building activities. In both cases, it reflects how actively employees contribute to the organization\u2019s success.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of employees participating in engagement initiatives by the total number of employees, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 120 out of 200 employees take part in engagement programs, the engagement rate is 60%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. Engagement below 50% generally indicates low participation, while results above 80% are typically considered excellent.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">18. Average Employee Tenure<\/h3>\n\n\n\n<p>This metric calculates the <strong>average length of time employees remain with the company<\/strong>. It provides insight into workforce stability and the effectiveness of retention strategies.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Add together the total years of service of all employees and divide the result by the number of employees.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 100 employees have accumulated a total of 520 years of service, the average tenure is 5.2 years.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. According to <a href=\"https:\/\/alleyoop.ilsole24ore.com\/2022\/05\/16\/il-posto-fisso\/\">Sole24Ore<\/a>, the average employment relationship in Italy lasts around 12 years, higher than the European average of roughly 8 years. The figure is likely to decrease as younger generations enter the workforce.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">19. Job Offer Acceptance Rate<\/h3>\n\n\n\n<p>This recruiting KPI measures the <strong>percentage of job offers accepted by candidates<\/strong>. A high acceptance rate suggests that the company is offering competitive roles, while a lower rate may indicate issues with compensation, employer reputation, or lengthy recruiting timelines.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of accepted job offers by the total number of offers extended, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If a company extends 40 job offers in a year and 36 candidates accept them, the acceptance rate is 90%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. An acceptance rate above 80% usually indicates that the company\u2019s offers are competitive and attractive to candidates. A lower rate, on the other hand, may signal competitiveness issues that need to be addressed.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">20. Goal Achievement Rate<\/h3>\n\n\n\n<p>This KPI measures <strong>how close the organization is to achieving its overall objectives<\/strong>. It provides a useful snapshot of performance across teams and departments.<\/p>\n\n\n\n<p><strong>How to calculate it<\/strong>. Divide the number of goals achieved by the total number of goals assigned, then multiply by 100.<\/p>\n\n\n\n<p><strong>Example<\/strong>. If 150 out of 200 assigned goals are completed, the goal achievement rate is 75%.<\/p>\n\n\n\n<p><strong>Benchmark value<\/strong>. In this case, even very high results \u2014 such as a 95% goal achievement rate \u2014 are not necessarily a positive sign, as they may indicate that the objectives set were not ambitious enough.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h1 class=\"wp-block-heading\">How and Where to Track HR KPIs<\/h1>\n\n\n\n<p>Choosing the HR KPIs that best fit your organization also means considering which data and metrics you are actually able to track, and which tools you have available to do it.<\/p>\n\n\n\n<p>In most cases, this data is collected through <strong>HR management platforms<\/strong>. These systems store information about candidates and employees and support many of the interactions between the organization and its workforce.<\/p>\n\n\n\n<p>From this perspective, companies that rely on a <a href=\"https:\/\/www.altamirahrm.com\" type=\"link\" id=\"https:\/\/www.altamirahrm.com\">single HRM suite<\/a> to manage all HR processes have a clear advantage: all the data is stored in the same database, making it more consistent, less ambiguous, and generally of higher quality.<\/p>\n\n\n\n<p>HRM software also includes <strong>built-in reporting tools<\/strong> that transform data into charts and tables, providing the insights HR professionals need to monitor performance and support decision-making.<\/p>\n\n\n\n<p>Organizations looking for more advanced HR analytics capabilities can also use <strong>business intelligence software<\/strong>. These tools enable deeper analysis of HR KPIs by pulling data from the company\u2019s HRM platform \u2014 as well as from other internal systems or external sources \u2014 and processing it accordingly.<\/p>\n\n\n\n<p><strong>With the support of AI, companies can also run predictive analyses<\/strong> that help them act on certain trends before they occur, for example by anticipating potential employee resignations.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=\"sk-block-block_413d2f61699146f3319605245697b716\" class=\"wp-block-sk-accordions\">\n    <h2 class=\"wp-block-sk-accordions__title\"><span class=\"ez-toc-section\" id=\"FAQ_Frequently_Asked_Questions_about_HR_KPIs\"><\/span>FAQ: Frequently Asked Questions about HR KPIs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n            \n    <div class=\"sk-faqs\">\n        \n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">What is the difference between an HR metric and an HR KPI?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>A metric is any measurable numerical data (for example, the number of employees or the hours of training delivered). A KPI (Key Performance Indicator), on the other hand, is a key metric chosen because it is linked to a strategic objective. For example, the \u201cnumber of candidates received\u201d is a metric, while the \u201coffer acceptance rate\u201d is an HR KPI.<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">What is a SMART KPI?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p data-start=\"468\" data-end=\"554\">For an HR KPI to be effective, it should be SMART, meaning:<\/p>\n<ul data-start=\"556\" data-end=\"763\">\n<li data-start=\"556\" data-end=\"592\" data-section-id=\"yxmbeo\">\n<p data-start=\"558\" data-end=\"592\"><strong data-start=\"558\" data-end=\"570\">Specific<\/strong> (clear and precise)<\/p>\n<\/li>\n<li data-start=\"593\" data-end=\"626\" data-section-id=\"ww068d\">\n<p data-start=\"595\" data-end=\"626\"><strong data-start=\"595\" data-end=\"609\">Measurable<\/strong> (quantifiable)<\/p>\n<\/li>\n<li data-start=\"627\" data-end=\"657\" data-section-id=\"1p25u4t\">\n<p data-start=\"629\" data-end=\"657\"><strong data-start=\"629\" data-end=\"643\">Achievable<\/strong> (realistic)<\/p>\n<\/li>\n<li data-start=\"658\" data-end=\"707\" data-section-id=\"1rtiiw\">\n<p data-start=\"660\" data-end=\"707\"><strong data-start=\"660\" data-end=\"672\">Relevant<\/strong> (linked to a business objective)<\/p>\n<\/li>\n<li data-start=\"708\" data-end=\"763\" data-section-id=\"1mrf4tq\">\n<p data-start=\"710\" data-end=\"763\"><strong data-start=\"710\" data-end=\"724\">Time-bound<\/strong> (defined within a specific time frame)<\/p>\n<\/li>\n<\/ul>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">What are the most important HR KPIs to monitor?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p data-start=\"765\" data-end=\"913\">The list of possible HR KPIs is potentially endless, but some are more commonly used, such as:<\/p>\n<ul data-start=\"915\" data-end=\"1046\">\n<li data-start=\"915\" data-end=\"932\" data-section-id=\"op28pl\">\n<p data-start=\"917\" data-end=\"932\">Turnover rate<\/p>\n<\/li>\n<li data-start=\"933\" data-end=\"949\" data-section-id=\"1va80r4\">\n<p data-start=\"935\" data-end=\"949\">Time to hire<\/p>\n<\/li>\n<li data-start=\"950\" data-end=\"968\" data-section-id=\"1cxfozi\">\n<p data-start=\"952\" data-end=\"968\">Retention rate<\/p>\n<\/li>\n<li data-start=\"969\" data-end=\"989\" data-section-id=\"1mh9fci\">\n<p data-start=\"971\" data-end=\"989\">Absenteeism rate<\/p>\n<\/li>\n<li data-start=\"990\" data-end=\"1028\" data-section-id=\"zojw54\">\n<p data-start=\"992\" data-end=\"1028\">Employee Net Promoter Score (eNPS)<\/p>\n<\/li>\n<li data-start=\"1029\" data-end=\"1046\" data-section-id=\"5649qq\">\n<p data-start=\"1031\" data-end=\"1046\">Cost per hire<\/p>\n<\/li>\n<\/ul>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">How many KPIs should the HR department monitor?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>There is no fixed number, but it is generally recommended to track around <strong data-start=\"1176\" data-end=\"1194\">5\u201310 core KPIs<\/strong>, meaning key strategic indicators, along with a similar number of <strong data-start=\"1261\" data-end=\"1281\">operational KPIs<\/strong> related to internal processes. If using a tool such as the <strong data-start=\"1341\" data-end=\"1363\">balanced scorecard<\/strong>, the recommended maximum is <strong data-start=\"1392\" data-end=\"1406\">12 HR KPIs<\/strong>.<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">How do you choose the right HR KPIs?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>To select the right KPIs for your company, you should identify a strategic objective, determine the related metrics, verify whether reliable and regularly updated data is available, and assess your ability to intervene in the process if performance declines.<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">Should HR KPIs be aligned with business KPIs?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p data-start=\"1712\" data-end=\"1982\">Yes. HR processes should always be aligned with broader business processes, and this also applies to KPIs. The key metrics selected by the HR department should support and reinforce the organization\u2019s overall strategy.<\/p>\n<p data-start=\"1984\" data-end=\"2145\">For example, if a company is in a phase of growth and expansion, it may make sense to focus on metrics such as the <strong data-start=\"2099\" data-end=\"2124\">offer acceptance rate<\/strong> or <strong data-start=\"2128\" data-end=\"2144\">time to hire<\/strong>.<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">How often should HR KPIs be monitored?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>The frequency depends on the specific metric. Operational KPIs generally require more frequent monitoring, for example <strong data-start=\"2311\" data-end=\"2322\">monthly<\/strong>. Strategic KPIs, on the other hand, often need to be observed over a longer time horizon to provide meaningful insights.<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">Are HR KPIs only useful for large companies?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>Absolutely not. <strong data-start=\"2512\" data-end=\"2533\">SMEs and startups<\/strong> can also benefit greatly from using KPIs, especially if they focus on a smaller, more manageable set.<br data-start=\"2635\" data-end=\"2638\" \/>For smaller or growing companies, identifying, tracking, and improving key metrics can make a significant difference in building efficient processes.<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">Are HR KPIs also used for individual performance evaluation?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>Yes, some HR KPIs can also be used to measure individual performance (for example, <strong data-start=\"2939\" data-end=\"2957\">goals achieved<\/strong> or <strong data-start=\"2961\" data-end=\"2991\">training courses completed<\/strong>).<br data-start=\"2993\" data-end=\"2996\" \/>However, it is important to distinguish between <strong data-start=\"3044\" data-end=\"3063\">individual KPIs<\/strong> (used to evaluate people) and <strong data-start=\"3094\" data-end=\"3113\">aggregated KPIs<\/strong> (used to evaluate processes or teams).<\/p>\n\n            <\/div>\n        <\/div>\n        <div class=\"faq__item\">\n            <h3 class=\"faq__title\">How should HR KPIs be presented to management?<span class=\"svg-data faq__arrow\">\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 12 7\">\n                    <path stroke=\"#FFFFFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"1.5\" d=\"m1 1 5 5 5-5\"\/>\n                <\/svg><\/span><\/h3>\n            <div class=\"faq__content normalize-text\">\n                <p>When analyzing data, presentation plays an important role. It is important to avoid overwhelming stakeholders with too many numbers and details. Instead, focus on <strong data-start=\"3370\" data-end=\"3389\">trends and gaps<\/strong>, and then present the <strong data-start=\"3412\" data-end=\"3443\">actions planned or underway<\/strong> to improve results.<\/p>\n\n            <\/div>\n        <\/div>\n    <\/div>    <\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Data plays an increasingly central role in business success. That said, not all data is equally useful. For HR teams, the real challenge is identifying the metrics that matter most and tracking them consistently in line with company strategy. In this article, we\u2019ll look at what an HR KPI is, how it differs from an [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":55913,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[350,352],"tags":[],"class_list":["post-62790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-online","category-human-resources-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/posts\/62790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/comments?post=62790"}],"version-history":[{"count":4,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/posts\/62790\/revisions"}],"predecessor-version":[{"id":62794,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/posts\/62790\/revisions\/62794"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/media\/55913"}],"wp:attachment":[{"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/media?parent=62790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/categories?post=62790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.altamirahrm.com\/en\/wp-json\/wp\/v2\/tags?post=62790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}