KPIs are used to report to management on how the organisation is doing from a workforce point of view. KPIs are used in many other ways, for example in marketing, but we are here specifically referring to HR KPIs.
HR KPIs often include targets that centre around the employee lifecycle: think of this journey as starting when the vacancy is advertised and ending when a member of staff leaves their employment. Examples of HR KPIs could be:
Recruitment KPIs:
- How long it takes to recruit a role from advert to verbal offer (‘on time, in full’)
- Percentage of new starters who successfully pass their probationary period (‘right first time’)
- Targets could be: >85% on time/in full; and >95% right first time
Staff Turnover:
- Number of leavers per month and year-to-date (YTD), as a percentage
- There are formulas you can use to calculate the figures you need to report on staff turnover
- Not every organisation has a target but it helps to understand your sector and what the national average staff turnover rate is, so you can compare against it. For example, we would expect a higher staff turnover in hospitality and retail, than in professional services
Absence:
- You can set targets around sickness absence and it is usually advised to separate short-term sickness absence from long-term sickness absence (4 weeks+)
- Or your organisation may report levels of absence per site, or department, and/or per type of absence and per month. It will depend on how large the workforce is and what you are trying to demonstrate
These are just some examples of HR KPIs and they should be agreed in a way that is SMART – they should be reasonably achievable and realistic to the business and the sector. HR KPIs in larger organisations can be given to Heads of or Line Managers as objectives they must meet within their teams.
Do you feel you or your team need additional HR training? At OneHR, we provide one-off or ongoing purposeful training sessions, which equips employees with skills they can immediately use in real life HR scenarios. Want to know more? Contact us at: kaye@one-hr.co.uk.
