In 2024, HR isn’t just about managing people; it’s about driving business outcomes. The metrics you track can make or break your strategy. The right data gives you the power to make informed decisions, optimize your workforce, and keep your organization ahead of the competition.
Here’s a breakdown of the top 8 HR metrics that matter most this year.
1. Employee Turnover Rate
Employee turnover rate is one of the most critical metrics for any organization. It tells you how many employees are leaving over a specific period. If your turnover rate is high, you’re bleeding talent and money. It’s a red flag that something isn’t working—maybe it’s the culture, maybe it’s the leadership, or maybe it’s just a poor fit.
Why It Matters
High turnover doesn’t just hit your wallet—it disrupts your operations and damages team morale. When good people leave, you lose more than just a warm body in a seat; you lose institutional knowledge, continuity, and sometimes even client relationships. Lowering turnover should be a top priority because it’s one of the clearest indicators of a healthy, engaged workforce.
To calculate your employee turnover rate, you need to track how many employees leave your organization over a specific period and then compare it to the total number of employees.
2. Time to Hire
Time to hire measures how long it takes to fill an open position, from posting the job to getting the offer accepted. This metric is critical because in today’s fast-paced market, the best candidates won’t wait around forever.
Why It Matters
Dragging out the hiring process can cost you top talent. If it takes too long, your ideal candidate might accept an offer from a competitor, leaving you with second-choice options. On the flip side, a quick and efficient hiring process shows candidates that your company is decisive and well-organized, which can be a huge plus in attracting high-caliber talent.
3. Cost per hire
Cost per hire is the total amount you spend to bring a new employee on board. This includes everything from advertising the job to the final onboarding process. It’s a critical metric for understanding the financial efficiency of your recruitment efforts.
Why It Matters
Knowing your cost per hire helps you manage your recruitment budget more effectively. If you’re spending too much, it’s time to analyze where the inefficiencies are—maybe your ads aren’t targeted well enough, or your interview process is dragging out too long. On the other hand, if your cost per hire is too low, you might not be investing enough in quality hires, which can hurt you in the long run.
4. Quality of Hire
Quality of hire is a metric that looks beyond just filling a seat—it measures the actual value a new employee brings to your organization. This can include their performance, cultural fit, and how long they stay with the company.
Why It Matters
Hiring someone quickly and cheaply doesn’t mean much if they aren’t adding real value. Quality of hire is about making sure your recruitment process is bringing in people who will thrive in your organization and contribute to its success. A high-quality hire doesn’t just do the job—they elevate the entire team.
5. Employee Net Promoter Score (eNPS)
Employee Net Promoter Score (eNPS) measures how likely your employees are to recommend your company as a place to work. It’s a straightforward metric that gives you a quick snapshot of overall employee satisfaction and loyalty.
Why It Matters
A high eNPS means your employees are not just satisfied—they’re advocates. This can lead to better retention, stronger employer branding, and even more effective recruitment as happy employees are more likely to refer top talent to your company. A low eNPS, on the other hand, is a clear signal that something needs to change—fast.
6. Absenteeism Rate
The absenteeism rate tracks the average number of days your employees are absent from work, not including planned vacations. It’s a key indicator of workforce health and engagement.
Why It Matters
High absenteeism can signal deeper issues like burnout, disengagement, or even poor management. It disrupts productivity, puts extra strain on those who do show up, and can lead to higher operational costs. Keeping absenteeism low is about more than just enforcing attendance policies—it’s about creating a workplace where people want to be present and contribute.
7. Promotion Rate
The promotion rate measures how often your employees are moving up within the company. It’s a reflection of your internal talent development and how well you’re nurturing and recognizing your top performers.
Why It Matters
A healthy promotion rate shows that your company is committed to internal growth and career advancement. This boosts morale and retention, as employees are more likely to stay with a company that invests in their future. On the flip side, a low promotion rate might suggest that you’re not providing enough opportunities for growth, which can lead to disengagement and turnover.
8. Salary Averages
Tracking salary averages means monitoring the average pay for various roles within your organization and comparing them to industry benchmarks. It’s about ensuring your compensation strategy is competitive enough to attract and retain top talent.
Why It Matters
If you’re paying below-market rates, you’re likely losing out on top candidates and risking higher turnover. Offering competitive salaries helps keep your team motivated and loyal while also enhancing your employer brand. In a market where talent is at a premium, salary averages are a metric you can’t afford to ignore.
Tracking these eight HR metrics—employee turnover rate, time to hire, cost per hire, quality of hire, eNPS, absenteeism rate, promotion rate, and salary averages—gives you the insights you need to make strategic decisions that drive your business forward.
In 2024, staying on top of these metrics will help you optimize your workforce, align HR strategies with business goals, and maintain a competitive edge in a rapidly evolving market.