6 Important HR Metrics That Professionals Should Deploy

The data is there. It’s the way that it’s collected and used that determines its purpose. Many management teams often fall short by disregarding data and thus walk into the trap of reacting to unresearched executive decisions. These resolutions can be based on a whim and do not rely on accurate and valuable information to highlight factual statistics that should influence crucial decisions.

With the onset of high-end technology and the introduction of human resources software, gathering data and drawing information is now the easy part. Having a clear understanding of how HR metrics can shape strategic and financial goals, however, is what many decision makers at the HR level fail to leverage effectively.

To give you an indication of just how constructive HR metrics can be, we have listed 6 important ways in which they can be deployed to deliver value to a business regardless of size or industry.

Head Count

Knowing how many employees you have within a company is one of the fundamentals that’s required in many other data-driven equations. What’s quite surprising is how many organisations still do not have exact figures of how many people are in the workforce. Or, sometimes there’s a disconnect between departments when it comes to defining “employee status”.

Your first step, therefore, is to determine who counts as an employee. For instance, should temporary staff be included? What about those who are on sabbatical and maternity leave? Once an organisation agrees who should be included into the metric, then software like Cezanne HR system can be used to further calculate information like Cost per Hire and Employee turnover.

New Hire Turnover

Employee turnover refers to how many employees have left. The information often includes details like location, job position, length of service, and most importantly – the reason for leaving. Employees quit their jobs for many reasons but the ones who leave the soonest are the ones who damage a company financially. This is because recruitment and training costs to get a new staff member on board are often quite substantial.

Also, if your data spikes to indicate that many employees have left over a certain period of time, this could hint at an internal problem that could potentially be rectified with the correct analysis and a thorough investigation.

If a company gathers accurate employee turnover data and uses this information to take strategic action to lower the chances of new members leaving within their first year of employment, then this could possibly benefit bottom line savings.

Flight Risk

A good employee holds much worth in a company and you want to avoid losing them at all costs. At the very least, you want to have a good idea of who might need to replace and when. This will help you to establish back-up plans so that you can keep key roles filled – allowing your business to continuously function like a well-oiled machine.

Discovering the flight risk of workers is a little tricky, however, and will require more physical action from HR and senior management. Performance reviews are generally the most common way of determining an incumbent’s position in the company and through these reports one can potentially determine their flight risk.

By reviewing performance levels and an employee’s disposition, you can postulate how settled they are within a company. Looking for clues is very important.  For instance, have absence level risen? Have they stopped putting in effort? Do they seem unhappy or disengaged? Sometimes the issues are not work related but there’s also always the possibility that an employee simply needs a different challenge or role within the workforce. Perhaps they feel they are undervalued, paid too little or are suffering from burnout?

HR systems are there to put preventative measures in place so that employees are engaged with before they decide to take flight. Open communication is key and succession plans to fill the gap are what keep processes seamless.

Appraisal Level Vs. Pay Range

Are you getting what you’re paying for? ‘Pay for performance’ is a common HR practice but are you ensuring that your organisation is accurately delivering on this promise? Essentially, this metric should give you insight into who your top performers are and how their compensation compares to the pay scale. Are you paying your employees more or less than the industry standard? Does their pay align with their performance and expectations?

If you are underpaying your employees according to their worth then you stand chance to lose them. If you are overpaying your members then your company could fall at a loss. Using HR metrics to find a fair middle ground where appraisal meets pay range is the ultimate solution.

HR Spend Vs. Revenue

It’s not uncommon for a human resources department to be tasked with the challenge to do more with less. This is because it isn’t a profit centre or revenue generator. The catch, however, is that HR management is an essential component of profit creation since the department assists in recruiting and onboarding the right employees all while ensuring that the legal and administrative duties are thoroughly seen to.

A solid metric system will help to determine how much is spent on HR activities in conjunction with the revenue that has been generated. This information can in turn be used to justify the expenditure in relation to industry averages. You can also add some different softwares for time clock and scheduling to help your HR team be as productive as possible.


Are company rules and regulations being applied? More importantly, is the workforce abiding by them? A broad range of employment issues land at Human Resources door. These complaints and discrepancies are easier to handle when you have a good idea of which boundaries have been crossed.

Do you know how many of your members have attended mandatory safety training? When last did they have a performance review? Are the employees being briefed on diversity in the workplace?  Who is responsible for risk assessment, and when was it last carried out?

These are examples of the types of questions one asks while assessing whether a branch or department it compliant with the protocols of a company. The answers to these questions can be found in HR systems that do the bulk of the investigations for you.


  1. 10 HR metrics every professional should keep at their fingertips. Cezanne HR
  2. Five key HR metrics your HRMS should be measuring. HRMS World
  3. The 6 HR Metrics You Should Be Measuring. Hello Sign

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