Top HR KPIs to Track in 2025
A company’s workforce changes and evolves with time. As employees’ needs change, so does the role of HR departments. Organizations must track HR KPIs or key performance indicators to keep up with changing trends and address their employees’ needs.
Various metrics can be used to evaluate the effectiveness of an organization’s workforce. By tracking such key metrics, companies can ensure that their employees are productive and meet their customers’ needs.
This blog post will examine the top human resources KPIs every organization must track in 2025 to ensure success. Watch the video below to learn more. Otherwise, skip ahead to continue reading.
What are Human Resource KPIs?
Human resource KPIs measure the performance of an organization’s workforce. They include many criteria, such as retention rate, employee morale, and customer satisfaction. The human resources department uses these metrics to determine the effectiveness of its workforce management strategy.
Top 16 Best HR KPIs 2025
Following is a list of some of the most important HR KPIs your business must track in 2025:
1. Employee Retention
Employee retention is one of the most crucial HR KPIs. A high retention rate means employees are happy with their jobs and do not plan to leave the company. On the other hand, a low retention rate indicates that employees are unsatisfied with their roles and might leave the company after some time.
Skilled staff is difficult to find and even harder to keep. Losing skilled employees is costly for the organization. Organizations can identify problem areas and take corrective action before employees leave by tracking employee retention rates.
You can measure this key performance indicator by tracking various HR metrics. Talent management programs can help you identify the best HR metrics for measuring employee retention.
2. Employee Satisfaction
Employee satisfaction is another key metric that HR departments should track. Employee satisfaction indicates how much employees enjoy their jobs and how motivated they are to perform well. Most of the time, employees don’t leave their jobs because they are unhappy with their salary or work but because they are not satisfied with the company culture.
It is calculated by conducting employee satisfaction surveys. You must formulate relevant questions for your employees to carry out such surveys. The questions should focus on the company’s work culture, their happiness with their role, and whether they feel valued and respected at their workplace. You can also conduct employee satisfaction surveys using software such as Qualtrics or SurveyMonkey to measure employee satisfaction.
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3. Time to Hire
The time to hire is the time it takes a company to fill an open position. You can track this metric by recording the days it takes to fill an open position. By monitoring this metric, organizations can determine how efficient their recruitment process is and identify areas for improvement.
If the hiring manager takes too long to find candidates, there is a problem with your job description, or you are looking for the wrong skill set. You can measure this HR KPI by analyzing the previous data you have collected during the past recruitment process. You can also use software such as Greenhouse or Workday to track the time-to-hire metric. Such software can also help you reduce the time it takes for your company to hire new employees.
4. Recruitment Costs
Recruitment costs are another vital HR KPI that you need to track to reduce the cost of hiring new employees. It tells you how much your company spends finding and recruiting new employees.
Recruitment is costly, and you need to monitor your expenses to optimize them over time. You can track this metric by dividing the total money spent on recruitment by the total number of employees hired.
You can measure the hiring costs by considering the money spent on advertisement, agency fees, interviewing costs, and other related expenses. Hiring costs also include the amount spent on onboarding the new employee. It will give you an idea of how much your company spends on recruiting new employees. If the recruitment costs are too high, you need to change your recruiting process and reduce expenses.
5. Absenteeism Rate
The absenteeism rate is the number of days employees are absent from work. By tracking this metric, you can identify whether your HR managers allow their team members to take too much time off or if there is an employee morale issue. If your employees are absent from work more than they should be, it is a sign that something is wrong.
There must be some valid reason for their absence, but it affects your organization. If many employees are absent from work, your company might miss out on important deadlines or projects.
HR managers must create a policy to track and communicate this HR KPI to the employees. They also need to manage their employees’ attendance and absence. They can create categories for various reasons for absence, such as vacation, sick leave, maternity leave, etc.
They can also make specific rules regarding the number of days employees are allowed to take off from work each year.
You can also use attendance management software, such as Comply Advantage, to track this key performance indicator. Such software is easy to set up and can help you reduce your employees’ absenteeism rate.
6. Employee Turnover Rate
Employee turnover is another important HR KPI that you should track. It indicates how many employees are leaving your company voluntarily or involuntarily. It also focuses on the reasons for their departure. If the turnover rate is high, there is a problem with your HR team or your company’s working environment. You need to focus on improving those areas if employee retention is an issue for your company.
The HR department must create strategies to keep the employee turnover rate as low as possible. A high turnover rate can become expensive for the company and lead to a decline in the quality of work. Your HR team also has to spend time finding a new hire for the position vacated by the departing employees.
You can track the employee turnover rate by recording the number of employees who left the company in a given period. Then, divide the number of employees left by the average number remaining within your company to calculate the rate.
7. Employee Productivity
Employee productivity is another key performance indicator that HR managers need to track. It measures how much work an employee can produce in a given period. If your employees are not productive, it will affect the company’s bottom line. You need to find out why they are not productive and try to address the issue.
It is one of the crucial key performance indicators that your HR managers must monitor. They should create a policy for their team members and help them improve productivity without sacrificing output quality.
HR managers can track employee productivity by looking at the number of hours an employee has worked and how much work they have produced. They can also use software such as Asana or Teramind to monitor the employee’s computer activity. By tracking various employee activities, you can identify which employees are productive and which ones need more guidance.
8. Training Effectiveness
Training programs are an essential component of an organization. They help employees to learn new skills and improve their productivity. However, not all training programs are effective. You need to track the effectiveness of your training programs to see if they yield the desired results. Training costs are also high. You need to make sure that it is worth the investment.
The HR department should also track the effectiveness of employees’ training programs. If the training programs are not effective, then your HR team needs to find out why they are not working. They can also try different training methods to see which is more effective for their employees. They can negotiate better deals with service providers or find new vendors offering more cost-effective solutions.
HR professionals can track the effectiveness of training by assessing the number of employees who have completed the program and how much they have learned from it. They can also use surveys to get feedback from their employees and see if they are satisfied with the training programs that their company is providing.
9. Benefits Administration
Offering benefits and perks to employees is a common practice in today’s workplace. However, not all companies provide the same benefits packages to their employees. You need to track the benefits your company provides to see if they are meeting the needs of your employees. If your employees are not satisfied with their benefits, it can negatively impact employee retention and recruitment.
Managing benefits can become a time-consuming process for the human resource department. You need to understand your employees’ needs and find the right benefits package that meets their requirements. You can utilize the information you have gathered from your employees by formulating better business deals.
You can track benefits administration by employing self-service portals. They allow the employees to check their benefits anytime they want. You can also use software like Zenefits to manage your employees’ health insurance, retirement plans, and other benefits.
10. Overtime Hours
Overtime hours show the time employees spend beyond their contracted working hours or when working on weekends. Employees might like to work overtime, which can affect their health and well-being, reduce their productivity, and affect their performance. Overtime hours also affect the company’s bottom line. You need to find ways to reduce or eliminate overtime hours.
Overtime hours are a crucial HR KPI to track if your staff works on night shifts or weekends or if you have many employees working overtime. You can track overtime hours by looking at the number of hours employees have worked beyond their contracted hours. You can also use time-tracking software to monitor employees’ time on their computers.
11. Employee Engagement
Engaging employees with their jobs is an important part of managing a company. A manager should recognize when employees feel unmotivated or dissatisfied with their jobs and take the proper steps to rectify the situation.
Employee engagement is one of the most important HR KPIs to track. A high level of engagement can lead to better performance, lower turnover rates, and reduced absenteeism. Sometimes, measuring employee satisfaction is not enough to assess engagement levels. You need to determine how engaged employees are with their work and what percentage of them should stay in your company for longer.
You can track employee engagement by surveying your employees. Moreover, you can also use software like Poll Everywhere to conduct anonymous polls and surveys for your employees.
12. Employee Net Promoter Score (NPS)
A company’s employees are its ambassadors. They meet with customers daily and represent the company to other stakeholders like business partners, vendors, etc. They can play a significant role in promoting the company. You can measure the loyalty of your employees towards your company by tracking their net promoter score (NPS).
Employee NPS is a metric that measures the likelihood of employees recommending their company to others. It also indicates how employees feel about their company. A high employee NPS score is an indicator of a strong company culture. It also enables HR professionals to see whether employees enjoy working in your company or not.
You can track the employee NPS by surveying your employees and asking various questions about their company. You can measure this KPI by subtracting the percentage of employees who recommend your company to others from those who will not do so. This metric can help you improve your company culture and make it more attractive to potential employees.
13. 90-Day Failure Rate
A high failure rate indicates how many employees leave the company in their first three months. It suggests that something is wrong with the recruiting process or that your company culture is not working for new employees. You can also look at why they are quitting their job. It will help you find out what you need to improve.
You can track the 90-day failure rate by looking at the number of people who have quit in their first three months and dividing it by total recruitment numbers. This key performance indicator can help organizations reduce the number of people quitting in their first three months by improving their onboarding process and changing their company culture.
14. Training Costs Per Employee
Training costs per employee are a vital HR KPI to track if you are planning to improve your employees’ performance. This HR strategy can tell you how much you are spending on employee training and whether the investment is paying off. It also tells you how much your company is spending on onboarding new employees, upgrading their skills, making them more productive, and increasing their performance.
You can track this metric by dividing the total amount of money spent on employee training by the total number of employees. This HR KPI can help you decide whether to invest more money in employee training. It can also help you assess the effectiveness of your employee training program and determine whether it is achieving its desired outcome or not. If the training cost per employee is too high, but the performance of your employees is not improving, then you need to make some changes.
15. Diversity Metrics
Diversity metrics help HR professionals assess your organization’s diversity towards various practices. They analyze workforce demographics and use this information to identify the diversity gaps and take necessary actions to improve the situation.
The diversity rate tacks a company’s progress towards creating a more diverse and inclusive workplace. Measuring the diversity rate is a complicated pursuit, but it’s essential. You can track this by looking at the number of women in management, the percentage of employees from different ethnic backgrounds, and other related metrics. You can also use software like Workable to track diversity metrics in your company and make monitoring progress easier over time. It also helps identify areas where the company can improve.
16. Workplace Accidents
Workplace accidents are among the biggest HR nightmares that can happen in your company. They are also one of the major reasons for employee absenteeism, leading to high costs, low productivity, and other problems.
You can track this metric by looking at the number of workplace accidents over a given time. It tells you how safe or unsafe your workplace is for employees. It also helps determine whether there’s room for improvement. If yes, then what kind of safety measures you must take? How can you prevent workplace accidents? You must track this metric to identify areas where improvements are required.
Conclusion
Above, we have provided a list of the best HR KPIs (2025) that you can use to see what areas your organization needs to focus on to improve the quality of the work environment and build a business brand.
HR KPIs play a huge role in measuring business performance. Thus, analyzing these KPIs can help you track overall performance and employee productivity over time.
FAQs
Here are the most frequently asked questions about HR KPIs.
What are HR KPIs, and why are they essential for an HR strategy?
HR Key Performance Indicators (KPIs) are measurable metrics that track the effectiveness of HR activities in achieving organizational goals. They play a critical role in shaping an effective HR strategy by identifying areas of success and improvement. Organizations can enhance employee performance, retention, and overall workplace satisfaction by aligning HR KPIs with business objectives.
How can an HR KPI template simplify performance tracking?
An HR KPI template is a structured tool that simplifies the process of tracking and evaluating key HR metrics. It typically includes predefined categories for data entry, such as recruitment, retention, and employee engagement. Using such a template ensures consistency, saves time, and provides a clear overview of HR performance, making it easier to identify trends and implement corrective actions.
What are some examples of key HR KPIs to monitor?
Key HR KPIs include time-to-hire, employee turnover rate, absenteeism rate, training effectiveness, and employee satisfaction scores. These indicators provide insights into critical HR performance areas, helping organizations assess their HR processes’ efficiency and impact on business goals.
How do HR KPIs improve overall HR performance?
By providing quantifiable data, HR KPIs enable HR professionals to monitor progress, identify challenges, and make data-driven decisions. For example, tracking employee turnover rates can highlight retention issues, prompting targeted interventions. Regularly evaluating these KPIs fosters continuous improvement in HR performance and ensures alignment with organizational goals.
Is it possible to customize an HR KPI template for specific business needs?
Yes, HR KPI templates are highly customizable. Businesses can tailor templates to include metrics most relevant to their industry and organizational objectives. For instance, a tech company might prioritize innovation-focused KPIs, while a manufacturing firm may focus on operational efficiency. Customizing the template ensures that the most critical HR strategy components are addressed effectively.
How often should HR KPIs be reviewed and updated?
HR KPIs should be reviewed periodically, typically quarterly or semi-annually, to ensure they align with evolving business objectives. Regular reviews help organizations respond to changes in workforce dynamics, market trends, and company goals, keeping their HR strategy relevant and effective.
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