A report by Gallup shows that 70% of the employees who claimed their departure was preventable expressed that a change in actions related to how they are managed could have changed their minds.

So, what exactly is employee churn, why does it happen, and what employee retention strategies can you utilize to reduce it in your organization and keep your workforce happy, engaged, and motivated? 

Contents
What is employee churn?
Churn vs. turnover vs. attrition
How to calculate employee churn
The cost of employee churn
Causes of employee churn
Impact of high employee churn
Employee retention strategies to prevent employee churn

What is employee churn?

Employee churn – sometimes called staff churn or job churn – refers to the number of employees who leave your organization over a specific period, including both attrition and staff turnover. 

This means that your employee churn figure includes everyone who leaves the business, whether you plan to replace them or not.

The term “employee churn” is most commonly used in industries that have high-volume hiring and/or fast-paced environments where workforce changes occur frequently, like customer service, call centers, retail, and hospitality. Compared to “turnover” or “attrition,” “churn” tends to emphasize the transactional or cyclical nature of employees leaving and being replaced.

Churn vs. turnover vs. attrition

How to calculate employee churn

To calculate the employee churn rate for your organization, use the following formula:

Churn Rate (%) = (Number of Departures ÷ Total Remaining Employees) x 100

For example, if you have 100 employees, and five of them leave in one quarter, your churn rate would be 5%.

The cost of employee churn

Although it’s natural – and sometimes beneficial – for people to leave your organization, a high churn rate can have serious financial, operational, and reputational consequences for any business.

Gallup indicates that voluntary turnover costs U.S. companies $1 trillion every year. The voluntary turnover rate has averaged at 18.5% across the past three years. That means that a company with 250 employees would see approximately 46 employees leave in a year (250 × 0.185).

Assuming an average annual salary of $50,000, the cost of replacing each employee could range from $25,000 to $100,000 (one-half to two times the yearly salary).

This means the total annual turnover cost for the company could range from $1,150,000 to $4,600,000 (46 employees × $25,000 to $100,000 per replacement).

Causes of employee churn

Here are some of the main causes of employee churn.

• Inadequate compensation and benefits package: Although the new generation of employees prioritizes various aspects of a job over compensation packages, it’s still important to pay them fairly and competitively, and can mean the difference between an employee staying in your company or leaving for a competitor. 
• Poor workplace culture: A toxic workplace, lack of diversity and inclusion, or ineffective communication are all common reasons why employees leave.
• Lack of career development opportunities: Most employees want to be in a job and company where they can learn, grow, and progress in their careers. Without training and development programs and a clear path for progression, you risk losing out on top talent. 
• Burnout: Excessive workloads, demanding deadlines, lack of support, and a poor work-life balance can lead to employees burning out, which is increasingly a driver of workplace departures. 
• Absence of recognition: Employees want to be recognized and rewarded for their efforts at work. When they’re not, it can quickly lead to feeling undervalued and unappreciated, which leads to disengagement and a high risk of employees eventually leaving.
• Rigid work policies: Since the pandemic, workers have been reassessing their priorities. Many more are searching for flexible work options, either hybrid or remote, or with flexible scheduling for frontline employees. Companies with strict in-office and 9-5 policies risk losing their best employees to competitors who have adopted a more flexible way of working. 
• Weak leadership: People don’t quit their jobs; they quit their managers. Ineffective and unsupportive management is a key contributor to employee churn, which is why effectively training your leaders is essential. 

Impact of high employee churn

Employee churn isn’t always negative, as it can bring fresh perspectives, new skills, and opportunities to align the workforce with evolving business needs. However, an excessively high churn rate can negatively impact organizations in many ways, such as: 

Financial strain

Losing an employee that you need to replace can lead to significant costs, including recruitment, training, onboarding, and productivity loss.

As we’ve mentioned above, the average cost of replacing an employee is usually between one-half and two times the departing employee’s annual salary. This figure is likely to rise during a tight labor market when unemployment is low or for hard-to-fill roles, as it will often take longer to find the right talent.   

Loss of institutional knowledge 

Every time a good employee leaves – particularly one who has been with the company for a significant period – they often walk away with a variety of knowledge, skills, and abilities that are an asset in your workplace.

This means that your new hires’ productivity levels will likely be lower, and it will take them months (maybe years) to build their knowledge and skills to the same level. 

Lower productivity

Employee churn often leads to a gap in a team, meaning that there are not enough workers to complete all the work that needs to be done. This can place extra strain on other team members to bridge the gap while a replacement is found, usually without any extra compensation, which often impacts their quality of work and ability to complete their designated tasks on time. 

Naturally, this results in employees feeling unappreciated and overwhelmed, which can lead to burnout and further churn.

Slower business growth

If you constantly have gaps in your workforce and are trying to fill vacancies, it can create an unstable work environment where your efforts are focused on putting out fires rather than supporting the wider strategy and goals of the organization. This stunts growth and makes it difficult to maintain a clear long-term vision. 

Impact on employee morale

If too many employees leave, it can negatively affect the morale of the people who stay, create uncertainty, and affect motivation. It signals to employees that something is wrong or that better opportunities can be found at other organizations, which can lead to further churn. 

Damage to your reputation

High employee churn can also damage your employer brand by indicating to jobseekers that there are problems in your culture, work environment, or business stability. This can make it increasingly difficult to attract new talent and retain customers and clients, and it can take significant effort to bounce back. 

Employee retention strategies to prevent employee churn

Here are some of the strategies HR can implement to reduce employee churn in the workplace. 

1. Foster a positive workplace culture

One of the most effective ways to prevent employee churn is to create a thriving, inclusive organizational culture where all employees feel a sense of belonging and purpose.

• Start by clarifying your core values and ensure you’re hiring people who are a good fit for your values and the culture you want to build
• Be honest and clear in your communication at all levels so that employees feel respected and valued
• Ensure that employees understand how their role and efforts align with and support the wider goals of the business. 

2. Offer career growth opportunities

To reduce employee churn, focus on offering employees ways to grow, develop, and progress within your organization. This includes:

• Training programs
• Workshops and lectures
• Coaching and mentoring – NASA’s “Mentoring Matters” program uses a mix of webinars and group sessions through an online platform that supports both mentors and mentees
• Blended learning
• Soft skill development.

Gallup and Workhuman reported that 60% of employees who recently learned a new skill did so because it enabled them to perform more effectively at work, while 51% viewed it as an opportunity to learn and grow. Investing in your employees’ growth is an investment in the growth of your organization. 

3. Recognize and reward employees

Recognizing and rewarding employees for their efforts and achievements helps to build a culture of appreciation where your workforce feels valued. Research shows that employees are 56% more likely to stay in an organization that has an effective recognition program. 

So whether it’s a monetary bonus, a shout-out during a meeting or on social media, a gift, or something else, start investing in noticing and celebrating employees who go above and beyond – it will boost their engagement and connection to the organization’s success.

4. Introduce flexible work options

Employees value freedom and flexibility – in fact, 91% of workers told Gallup they would prefer not to return to their office full-time after working from home during the pandemic. Flexible working arrangements allow employees to manage childcare and pets, avoid commuting during rush hours, spend less time traveling to and from work, and work when they’re most productive. 

HR tip

While you may not be able to go fully remote, you could consider a hybrid model where employees work remotely one to three days per week, allow them to choose their working hours, or even reduce the working week to four days like Buffer. 

5. Train leaders to manage their teams effectively

Poor management is one of the primary causes of employee churn. HR and leadership must work together to manage it effectively. While HR provides the tools, training, and strategies, leadership implements them directly within teams, creating a strong impact on employee retention.

Address any current issues in your organization with managers and leaders, give them constructive feedback, and train them to lead with openness, honesty, empathy, and fairness.

Ensure there’s always a way for your employees and managers to give and receive feedback – not just in annual performance reviews – so that issues can be addressed quickly and not left to grow. 

6. Conduct stay interviews

By the time you conduct an exit interview, your employee is ready to depart, which means you’re too late collecting feedback! Stay interviews can help you uncover problems in the workplace, address them sooner, and retain your best employees.

Ask questions that help you understand what you’re doing well as an organization and what you can do better. Don’t let this valuable feedback go to waste – act on it. 

7. Improve onboarding processes

An effective onboarding program creates a positive, long-lasting first impression for new hires, helps them understand their role, integrate with their team, and equips them with the tools and skills they need to succeed. Remember that onboarding should begin the moment your employee signs their employment contract and usually lasts around three months to one year after they start.

Pinterest’s “Knit SF” onboarding strategy focuses on collaboration. New hires engage in icebreakers with peers and meet cross-disciplinary team leaders, encouraging them to get to know colleagues who are in and out of their immediate team. This helps build a strong sense of community where everyone is a big team.

Improving your recruitment process also has a positive impact on retaining your employees.

Retention starts at first sight. The experience that employees have with the organization starts from the moment they become aware of the organization and apply for a job. Therefore, it is critical to focus on creating a positive experience at every step of the recruitment process: from a transparent view of benefits and expectations, a realistic preview of the job, a positive and engaging interview experience, and an onboarding process that sets employees up for success and connects them to the brand.

Dr. Marna van der Merwe, Subject Matter Expert, AIHR

8. Invest in employee engagement technology

Leverage technology to help you track engagement metrics and ensure your employees are committed and feel supported and valued at work. Platforms like Culture Amp and Workday make it easy to collect, understand, and act on employee feedback to make your organization an amazing workplace.

9. Offer competitive compensation and benefits

Another way to reduce employee churn is to ensure your compensation and benefits package is fair and healthy enough to attract and retain top talent. A recent HAYS salary guide reports that even though 59% of U.K. employees are looking for a pay rise, only 16% of organizations intend to provide one. 

If you can afford to pay your employees above the industry average, then do – it’ll be worth it. At the least, consider inflation and the rising cost of living when adjusting salaries so that employees aren’t left out of pocket.

If you can’t afford to increase your compensation packages, take a look at the extra benefits you can offer that are meaningful to your employees. 

10. Support employees’ mental and physical health

A Harvard Business Review study found that over 50% of Millennials and 75% of Gen Z have left a job due to concerns over their mental health. As an area of growing concern, it’s important that you support the wellbeing of your employees so that they feel happy and healthy at work. 

Some of the things you can consider offering:

• Unlimited (and well-managed) paid time off
• Flexible work arrangements
• Employee assistance programs
• Regular check-ins
• Pregnancy loss leave
• Access to counseling and therapy sessions.

Final thoughts

Employee churn is a pressing issue, but it is also an opportunity in it. By addressing the root causes and implementing targeted strategies, organizations can create an environment where employees truly want to stay. Strong leadership, effective communication, and investment in people are the pillars of successful retention efforts.

Start managing churn today by applying these strategies—your employees and bottom line will thank you!

The post Understanding Employee Churn and How To Manage It Effectively appeared first on AIHR.

Contents
What does an HR Analyst do?
HR Analyst skills
How to become an HR Analyst
HR Analyst vs HR Business Partner
HR Analyst vs. HR Generalist
HR Analyst salary
HR Analyst career path
HR Analyst example job postings
FAQ

What does an HR Analyst do?

An HR Analyst, also referred to as HR Data Analyst or People Analyst, plays a key role in helping organizations make data-driven decisions related to their workforce. They analyze HR data, identify trends, and provide insights that improve processes like recruitment, retention, and employee engagement. The HR Analyst job growth rate is estimated to be 11%, highlighting the demand for these types of roles in the market.

Key responsibilities of the HR Analyst include:

• Collect and analyze HR data: Evaluate metrics like turnover rates, employee satisfaction, and absenteeism.
• Generate reports and dashboards: Present insights to HR teams and leadership to inform decision-making.
• Monitor workforce trends: Identify patterns in hiring, productivity, or retention to recommend improvements.
• Support compliance efforts: Ensure HR practices align with employment laws and company policies.
• Collaborate on strategy: Work with HR and management teams to develop strategies for workforce planning.
• Evaluate HR tools and systems: Assess the performance of HR software and suggest optimizations.
• Conduct salary benchmarking: Research market data to ensure competitive and fair compensation practices.

Note that the HR Analyst has a broad role and – depending on the organization – will be asked to focus on different tasks.

HR Analyst skills

The exact skills an HR Analyst should have will, again, depend on the organization. Quite a few organizations are looking for an HR Analyst with predominantly soft and HR skills. This makes the analyst’s function profile very similar to an HR Business Partner. Other organizations are really looking for a data analyst role. When applying for a job, read the job posting thoroughly to understand what type of role it is.

Here are some common skills that an HR Analyst should have.

1. Business acumen

Business acumen is becoming increasingly important for HR roles. The same holds true for the HR Analyst.

Before you analyze data, you need to know what project you will work on and how the data analysis will impact the business. Business acumen is an essential skill for any analyst who is involved in either simple data analysis or in an end-to-end analytics project.

2. Communication & consultation

Whether you’re spending most of your time analyzing data or only very little, you need to talk to the business, manage stakeholders and their expectations, and communicate the results of an analytics project to the relevant audiences. Hence, communication and consultation are essential for HR Analysts.

3. Relationship management

As an HR Analyst, it is key to effectively manage relationships and stakeholders. Expectation management is a requirement for analytics success. In addition, you need to keep the business involved in your analytics project and keep them up to date on progress and potential setbacks.

4. HR expertise

Whether you’re more on the business partner side of the analyst role or crunching numbers every single day, HR expertise is an essential skill. This expertise touches almost everything you do in your job.

HR expertise can be divided into three key areas:

• Knowledge of the science behind what we do in HR
• Knowledge of HR best practices
• Understanding of the key HR processes.

5. Data analysis

The HR data analyst is involved in the basics of data-driven HR in the organization. For most organizations, this entails (ad hoc) reporting and dashboarding.

In order to accurately report on HR data, the analyst is involved in the aggregation of data, maintaining HR data quality, and the analysis of data.

Depending on the data maturity of the organization, these reports can be ad hoc. Ad hoc reporting means that the information has to be manually retrieved from the systems for reporting and analysis. This kind of data often needs to be cleansed as well – which may take a lot of time.

More mature organizations have automated this process. This makes reporting less time-consuming, and the analyst can focus on analyses that add more value than basic reporting, like predictive analyses.

Competencies required for this include strong attention to detail and a strong drive to use data to answer business questions.

6. HR systems & implementation

HR data comes from HR systems, often referred to as the Human Resources Information System (HRIS). These transactional systems contain most of the data that the HR Analyst works with.

Implementing, maintaining, and updating these systems is part of the HR Analyst’s responsibility.

7. Global and cultural awareness

HR data often spans multiple regions, especially in large international organizations, making global and cultural awareness a key skill. As an analyst, you’ll work with data from diverse locations, requiring an understanding of how cultural differences influence HR practices, employee behaviors, and data collection methods. This awareness helps you interpret data accurately and provide insights that are relevant across different cultural contexts.

How to become an HR Analyst

Breaking into HR analytics or people analytics requires a mix of HR knowledge, data skills, and familiarity with HR technology. Whether you’re coming from an HR background or a more technical field, the right approach can help you bridge the gaps and stand out to employers. Here are some key steps to build the skills and experience needed for an HR analyst role:

Understand the job requirements

As we’ve already mentioned, job requirements will differ per role and organization. Check job openings for HR analyst roles in your desired location or field to identify common skills and tools required.

The standard requirement for an HR analyst position is domain experience in HR. HRM studies or a background in industrial and organizational psychology are usually considered highly relevant.

A background in economics, statistics, or analytics is also beneficial. People with these kinds of backgrounds bring a unique set of quantitative skills that most people with an HRM background are missing. This background often requires complementary training in Human Resources.

Get hands-on with HR systems

Many HR jobs require HRIS experience, so learning to work with systems like Workday, SAP SuccessFactors, or Oracle HCM is key for an HR Analyst job.

Some of the things you can do include:

• Take online courses on digital HR and analytics
• Explore interfaces and reporting features of HRIS providers offer demo accounts or trial versions
• If you’re already working in HR, check out the HR reports, dashboards, or data extraction in your company’s HRIS.

Develop visualization & reporting skills

HR Analysts frequently use tools like Tableau, Power BI, or Qlik to create HR dashboards and reports. A must-have skill is proficiency in Microsoft Excel. This is still used in most organizations and an understanding of how to combine worksheets and analyze large amounts of data using pivot tables are usually considered elementary.

You also need to build a foundational understanding of key HR metrics like turnover rates, employee engagement, and recruitment efficiency.

Gain practical experience

Real-life experience is one of the best ways to build confidence and strengthen your resume. If you’re transitioning into HR analytics, look for opportunities to work with HR data in your current role or take on projects that showcase your skills.

Some ways to gain experience:

• Volunteer for HR reporting tasks if you’re already in an HR-related role
• Work on personal projects—analyze publicly available HR datasets to practice data visualization and reporting
• Apply for internships or entry-level roles in HR analytics to get exposure to real-world HR data
• Freelance or contribute to HR analytics projects on platforms like Kaggle or GitHub.

Prepare for job interviews

When applying for jobs, it’s helpful to review common HR analyst interview questions to understand what employers look for.

Practice explaining HR metrics, data analysis techniques, and how you’ve used HR tools in past experiences to address the interviewees’ queries. Be ready to discuss real-world scenarios, such as how you would analyze turnover data or improve HR reporting.

Stay updated on HR analytics trends

HR technology and analytics are evolving quickly, so staying informed can give you a competitive edge. You can start by following HR analytics thought leaders and pages on LinkedIn and industry blogs.

Other great ways of keeping up to date with the developments in the field include attending webinars and conferences on HR technology and workforce analytics and joining HR analytics communities and forums to learn from professionals in the field.

HR Analyst vs HR Business Partner

We already hinted a few times about the similarities between the HR analyst and the HR business partner’s job. Both roles contribute to HR strategy but focus on different areas.

An HR Analyst specializes in collecting, analyzing, and reporting data, using technical skills to provide insights. In contrast, an HR Business Partner (HRBP) works closely with managers, using soft skills to solve HR-related challenges and align people strategies with business goals.

The HR BP acts as an internal consultant, advising on operational and strategic HR matters. When data-driven solutions are needed, the analyst steps in to define problems and provide insights.

As HRBPs gain analytics skills, the line between these roles can blur, leading some companies to use the term “HR Analyst” when they really mean “HR Business Partner.”

HR Analyst vs. HR Generalist

While both roles contribute to HR operations, they have distinct focuses.

An HR Analyst works with HR data, reporting, and workforce analytics, using tools like Excel, Power BI, and HRIS to identify trends and improve decision-making. Their role is more technical and data-driven.

An HR Generalist, on the other hand, handles a broad range of HR functions, including recruitment, employee relations, compliance, and benefits administration. They are involved in day-to-day HR operations and often serve as the first point of contact for employees.

While HR Analysts focus on data and insights, generalists work more directly with employees and HR policies. Some companies may blend these roles, but in larger organizations, they are typically separate functions.

HR Analyst salary

Salaries for the HR analyst role can vary wildly depending on the size of the company, the location, and the experience of the analyst. In the United States, you can expect to earn between $67,000-$110,000 in the midwestern United States, while someone doing the same job in New York City could expect to earn between $69,000 and $117,000 per year.

Payscale.com puts the average base salary at around $65,000.

HR Analyst career path

It is hard to map a well-defined career path in today’s world. Usually, you start as a junior analyst and can grow your way to a senior analyst position.

The data-driven mindset of an analyst is increasingly popular and looked for in management positions.

Career paths to becoming HR Manager and HR Director are available, as well as horizontal paths towards (senior) Human Resources Generalist, or the more specialized Human Resources Information System Analyst and HRIS manager.

HR Analyst example job postings

Because defining what an HR Analyst exactly differs from business to business, we’ve looked at job postings from companies that hire HR Analysts to see the commonalities and dissimilarities in responsibilities and requirements.

A brief job analysis

We conducted a brief analysis of HR Analyst job postings to help you understand the role of the HR Analyst even better. Here are a few interesting details:

• Many job postings explicitly mention advanced Excel skills, including PivotTables, VLOOKUP, and data manipulation.
• Some job postings emphasize data visualization tools like Power BI, but none require deep statistical expertise in SPSS, STATA, R, or Python.
• Many roles require familiarity with Workday, SAP SuccessFactors, or other HR systems.
• A lot of companies seem to be looking for candidates with Excel expertise and an interest in HR rather than HR professionals with a strong data background, making these positions accessible for early-career professionals.
• A significant portion of job postings emphasize administrative HR tasks, such as updating HR data, preparing reports, and supporting employee engagement initiatives.

A final word

To sum up, if you’re looking to start a career as an HR analyst, focus on building strong Excel skills and gaining familiarity with HR systems like Workday or SAP SuccessFactors. Entry-level HR roles that involve reporting, data management, or HR operations can be a great stepping stone, as many companies prioritize candidates with hands-on experience in these areas. Taking courses in HR analytics or data visualization tools like Power BI can also help you stand out.

FAQ

The post What Is the Role of the HR Analyst? A Full Guide appeared first on AIHR.

This article explains the benefits of an HR analytics certification and lists 18 top certifications you can consider to help you further your HR career.

Contents
Why get an HR analytics certification?
18 best HR analytics certifications to consider
How to choose the right HR analytics certification for you

Why get an HR analytics certification?

Getting HR analytics certified provides multiple advantages, including: 

Expertise in a highly valued skill set

An HR analytics certification can teach you how to translate data into actionable insights. Employers value this skill because it can optimize the workforce and align it with company goals. Being certified in HR analytics proves you can analyze HR data for sound recruitment, retention, performance management, and workforce planning decisions.

A competitive edge in the job market

Some HR data analytics programs allow you to work in specialized positions and help you become eligible for promotions and higher pay. Being certified also shows employers your commitment to enhancing your knowledge. Once you complete the course, you can fill roles such as people analytics consultant, data analyst, and workforce planning specialist.

Practical, hands-on knowledge

HR data analysis certification courses often allow learners to work on actual case studies, which require you to apply your knowledge to real-life scenarios. You’ll also learn how to use industry-standard HR analytics tools, giving you the technical skills to perform the duties relevant to the HR positions you may want to apply to.

The ability to take a data-driven approach to HR

An HR data analytics certification will teach you to identify KPIs impacting recruitment, engagement, and turnover. You’ll also learn to use different frameworks to collect and analyze data, enabling you to create reports that will influence stakeholders and justify your proposed HR strategies.

Staying updated on HR and data analytics trends

HR analytics certification programs often include relevant information on the latest trends and best practices in HR analytics. Staying abreast of the latest technological advancements, AI, and data science in HR enables you to be prepared and remain competitive in addressing changing organizational needs.

18 best HR analytics certifications to consider

1. People Analytics Certificate Program (AIHR)

• Format and duration: Online and self-paced; 42 hours over 12 weeks.
• The program covers: Data analytics, HR dashboards in Microsoft PowerBI, HR statistics in Microsoft Excel, and using data to create more effective people policies.
• Cost: $1,125
• Find out more: People Analytics Certificate Program

2. HR Metrics & Dashboarding Certificate Program (AIHR)

• Format and duration: Online and self-paced; 35 hours over 12 weeks.
• The program covers: Defining and implementing strategic HR metrics, data integrity and visualization, and how to extract, clean, and analyze HR data.
• Cost: $1,125
• Find out more: HR Metrics & Dashboarding Certificate Program

3. People Analytics Specialty Credential (SHRM)

• Format and duration: Online and in person; you have one year after your purchase date to complete the program.
• The program covers: Foundational data literacy, the metrics behind people analytics, the analytics maturity model, and how to combine different data types.
• Cost: $1,855 (member) or $2,130 (non-member) 
• Find out more: SHRM’s People Analytics Specialty Credential

4. Data and Analytics for People Professionals Course (CIPD)

• Format and duration: Online and self-paced; eight hours over two weeks (one four-hour online lesson per week).
• The program covers: Gathering and using credible data, the analytics mindset, and how to use data and people analytics to align projects with broader business activities.
• Cost: $1,210
• Find out more: Data and Analytics for People Professionals Course

5. Certificate in Data Analytics (HRCI)

• Format and duration: Online classes; available for 180 days from the purchase date.
• The program covers: Real-world data analysis, data analysis to improve organizational performance, statistical process control, and statistics as a managerial tool.
• Cost: $399
• Find out more: Certificate in Data Analytics

6. Analytics That Support The Workforce Certification (HRCI)

• Format and duration: Online classes; available for 180 days from the purchase date.
• The program covers: How analytics support employee wellness and performance, using analytics to make real-time staffing decisions, and exploring data ethics with AI.
• Cost: $149
• Find out more: Analytics That Support The Workforce Certification

7. Recruitment Analytics Certification (HRCI)

• Format and duration: Online classes; available for 180 days from the purchase date.
• The program covers: Common recruiting KPIs, data-driven recruitment, predictive analytics life cycle, and using analytics to predict performance and attrition.
• Cost: $149
• Find out more: Recruitment Analytics Certification

8. Use of Analytics Certification (HRCI)

• Format and duration: Online classes; available for 180 days from the purchase date.
• The program covers: HR, people, human capital, workforce, descriptive, diagnostics, predictive, and prescriptive analytics, and data collection in ATS, CRM, and HRIS.
• Cost: $149
• Find out more: Use of Analytics Certification

9. HR Analytics Certificate (Rutgers University)

• Format and duration: Online and self-paced with a personal learning coach, five to seven hours a week over approximately three months.
• The program covers: The business of HR analytics, stakeholder management, governance, developing a culture for HR analytics, and the future of HR analytics.
• Cost: $2,300
• Find out more: HR Analytics Certificate

10. HR Analytics Certificate (Cornell University)

• Format and duration: Online; three to five hours a week over approximately two months.
• The program covers: HR analytics essentials, strategic talent analytics, applied predictive analytics in HR, and how to conduct a credible ROI analysis.
• Cost: $3,900
• Find out more: HR Analytics Certificate

11. HR Management and Analytics (Wharton)

• Format and duration: Online; four to six hours a week over two months.
• The program covers: People analytics and performance evaluation, using analytics to improve hiring decisions and maximizing employee performance with talent analytics.
• Cost: $2,800
• Find out more: HR Management and Analytics

12. People Analytics (University of Cambridge)

• Format and duration: Online; four to six hours a week over two months.
• The program covers: Strategic positioning, achieving operational excellence with data, root cause analysis and project tactics, psychometrics, and organizational data science.
• Cost: $2,170
• Find out more: People Analytics

13. People Analytics for HR (HCI)

• Format and duration: Online and in person; two days.
• The program covers: Connecting people analytics to organizational outcomes, assembling metrics and expertise to test hypotheses, and consulting with stakeholders.
• Cost: $1,995
• Find out more: People Analytics for HR

14. Certificate in HR Analytics (EY)

• Format and duration: Online; 18 hours over six months.
• The program covers: Data visualization and DAX, Python Essentials packages, data-cleaning, attrition management using descriptive statistics, and data import.
• Cost: $250
• Find out more: Certificate in HR Analytics

15. Human Resources Analytics (UCI)

• Format and duration: Online and self-paced; five hours.
• The program covers: HR metrics and life cycle, staffing, training and compensation, employee relations, and how to build your case and create action.
• Cost: $59 a month or $399 a year with Coursera Plus
• Find out more: Human Resources Analytics

16. People Analytics (Josh Bersin Academy)

• Format and duration: Online and self-paced; four to six hours over five weeks.
• The program covers: Analytics revolution, meaningful data, insightful analysis, persuasive communication, and creative questions.
• Cost: $49 a month, or $495 a year for access to all Josh Bersin Academy courses
• Find out more: People Analytics

17. Certificate in People Analytics (NYU)

• Format and duration: Online; duration varies.
• The program covers: Data visualization for HCM, introduction to data science methods in R and Python, database management with SQL, and HCM introduction to statistics.
• Cost: $12
• Find out more: Certificate in People Analytics

18. HR & People Data and Analytics Fundamentals (Udemy)

• Format and duration: Online; three hours.
• The program covers: HR and people data basics, HR data tools, calculating HR and people metrics, Google Sheets and Microsoft Excel basics, and HR data and people partnerships.
• Cost: $12
• Find out more: HR & People Data and Analytics Fundamentals

How to choose the right HR analytics certification for you

Here’s what to take into account when selecting the HR analytics certification that best suits your needs:

Consider your career goals

Are you looking for foundational knowledge or advanced expertise? Or do you need advanced training to prepare for a leadership role?

If you’re an HR Generalist, you can take beginner-level HR analytics certification courses that cover basic concepts, tools, and techniques to move you to a People Analytics Specialist role. However, advanced programs are ideal if you are a mid-to senior-level HR professional wanting to specialize in predictive analytics, using AI, or strategic workforce planning. 

Evaluate the program content

Does the certificate program align with your current role or desired specialization in HR analytics? Review the curriculum to make sure it meets your needs. Check if it teaches specific topics:

• Data collection, HR metrics, or KPIs 
• Tools and techniques such as Tableau, Power BI, Excel, or Python 
• Real-world case studies that show practical applications
• Predictive modeling, AI integration, and business impact analysis (for advanced courses).

Look for programs that provide a balanced approach to concepts and hands-on learning. 

Decide on the most suitable delivery format

Choose between a self-paced, online, or in-person HR analytics course based on your schedule and learning preferences:

• Self-paced learning gives you the flexibility to learn on your own terms. This is ideal for busy professionals
• Live online classes offer real-time interaction that fosters engagement and accountability while still being flexible with the location
• In-person learning suits those who prefer classroom settings, face-to-face mentorship, and networking.

When selecting an HR analytics course, ask yourself what you want to gain from it, how it fits with your career and role requirements, what the best mode of learning is to make sure you achieve the intended benefit, what support you need to make the learning effective, and how much time you can commit to it. Embarking on a new certification, especially in an area you might lack experience in, requires a significant commitment in terms of time and focus.

Dr Dieter Veldsman, Chief Scientist (HR & OD), AIHR

Assess the costs

Consider your financial investment and the potential ROI when evaluating which programs to take. This includes costs for tuition fees, materials, tools, and certification exams. You should also evaluate the course’s value—will it help you land a higher-paying job or improve business outcomes?

Finally, compare the total costs against industry salary trends for HR professionals with analytics skills to further determine its worth in the context of your career goals and your organization’s business needs. 

Check if it has industry recognition

Ensure the certification is recognized and respected in the HR industry. A credible certification can enhance your reputation and broaden your career opportunities. Research the provider’s credentials—are they associated with reputable universities, HR organizations, or tech platforms? 

Look for certifications endorsed by industry bodies like SHRM, HRCI, or CIPD, and check for alumni testimonials and employer recognition to validate the program’s value in the job market.

Look into support and resources

Check if the program offers additional resources like mentorship, case studies, or networking opportunities:

• Mentorship: Does the program offer access to industry experts who can guide you and answer your questions? 
• Hands-on tools: Does the program include case studies, HR tools, and software platforms to help you apply the concepts you’ll learn in real-world scenarios?
• Networking opportunities: Will you have access to a professional community or alumni network to help you build relationships and discover job opportunities?
• Post-certification support: Does the program offer career coaching, job placement assistance, or continued access to resources and content even after you complete it?

Programs with a strong support system can help you maximize the value of your certification and sustain long-term growth.

To sum up

Getting HR analytics certification can significantly boost your career prospects, as you’ll have the right skills to make data-driven decisions. These certifications cover essential competencies like data collection, analysis, and visualization, ensuring you’re ready to address real-world HR challenges. 

When choosing an HR analytics program, consider your professional needs, goals, and budget. Investing in certification can broaden your expertise and position you as a valuable asset to your HR department and overall organization.

The post 18 Best HR Analytics Certifications and Courses [2025 Edition] appeared first on AIHR.

In this article, we dive into the details of KPIs in HR. We will discuss what HR KPIs are and how you can use them, provide a framework for setting them up for your HR department and organization, and share a handy HR KPI template. Let’s dive in.

Contents
What are HR KPIs?
How does HR use KPIs to support organizational needs?
HR KPI examples
HR KPIs vs metrics
Characteristics of good HR KPIs
Leading vs. lagging KPIs
HR KPIs case study
HR KPI template
HR KPI best practices
FAQ

What are HR KPIs?

Human Resources key performance indicators (HR KPIs) are strategic HR metrics used to assess how effectively HR supports the organization’s overall goals. An HR KPI measures how successful (or not) HR contributes to and achieves the organization’s HR strategy.

Since HR strategy is built to support the organization’s broader strategy, HR KPIs reflect how HR performance ties into the company’s objectives. They are typically linked to outcomes that drive business success and are often derived from frameworks like the Balanced Scorecard. To achieve a specific business goal, HR may track multiple KPIs, each representing a smaller, actionable target.

Ideally, all KPIs should work together to advance the HR strategy. However, conflicts can arise. For example, if you have to cut costs in your learning and development budget while also trying to stimulate innovation, it creates a strategic challenge. In such cases, HR must balance competing priorities, such as encouraging innovation with fewer resources.

How does HR use KPIs to support organizational needs?

HR KPIs provide valuable insights that help improve decision-making, monitor workforce performance, and plan for future talent needs in multiple ways, such as:

• Aligning HR activities with business goals: HR uses KPIs to ensure that its strategies, like hiring or employee development, contribute directly to broader company objectives.  
• Data-driven decision-making: By analyzing KPI progress, for instance, by using an HR dashboard, HR teams can make informed, data-based decisions and choices about policies, resource allocation, and workforce strategies. 
• Tracking workforce performance: KPIs like employee productivity or goal attainment help ensure that teams are effectively meeting their business targets.
• Monitoring employee engagement: Metrics such as engagement survey scores or turnover rates signal morale and satisfaction, which impact retention and organizational performance. 
• Supporting workforce planning: HR uses data and metrics to anticipate and address current and future staffing and talent needs, ensuring the organization has the right people in the right roles.

HR KPI examples

The KPIs used in an organization are unique. Every organization is different – and its KPIs should reflect that uniqueness.

Many resources you’ll find online list tens, sometimes even close to a hundred HR KPI examples. Most of these, however, are simple HR metrics that can offer useful insights into HR operations but they won’t directly contribute to the organization’s strategy.

Here is a list of 20 key HR metrics examples that will:

Absence rate

The absence or absenteeism rate in the organization is typically calculated by dividing the number of working days in which the employee was absent by their total number of working days. High absence rates may signal underlying issues like low morale, burnout, or workplace inefficiencies, all of which impact productivity and the organization’s ability to meet its goals.

Absence cost

The total cost of absence is calculated by including employee pay, the cost of managing absence, and replacement cost.

This KPI is especially relevant for European countries with strong labor unions and robust employee protections because these factors often lead to higher costs associated with employee absence. These protections might include guaranteed paid sick leave, extended leave policies, or legal requirements for employers to cover wages during absence, all of which increase the financial burden on organizations.

Benefits satisfaction

Satisfaction with different types of employee benefits is usually measured through an engagement survey but can also be gauged in stay interviews. The insights from these surveys can help reduce employee turnover.  

Employee productivity rate (EPR)

Although this metric is hard to calculate, it measures the productivity of a company’s workforce over a certain period. It can help managers understand whether they need to hire more (or fewer) people to achieve their goals. 

Employee satisfaction index

Employee satisfaction can be measured via attitude, engagement, and pulse surveys, as well as stay and exit interviews. Unsurprisingly, dissatisfaction is a common reason for employee turnover. 

Employee engagement index

Employee engagement is measured through the same tools as employee satisfaction (minus the exit interview). High employee engagement predicts higher productivity, better customer service, lower turnover, and many other relevant and positive outcomes.

Employee innovation index

Innovation can be measured using attitude or engagement surveys and is increasingly becoming a key driver of business success. It’s part of HR’s role to enable this innovation within the organization. 

Employee wellbeing index

This metric provides a composite score from surveys measuring employees’ mental and physical health, work-life balance, stress levels, sense of purpose, and other factors that impact productivity and retention.

Internal promotion rate

This KPI is measured by dividing the number of senior functions filled through internal promotion by the total number of senior positions filled. Internal hires are often up to speed faster, reduce the risk of bad hires, and stay longer in the role. 

Net Promotor Score (NPS)

A Net Promoter Score is an excellent way of measuring the degree to which someone would recommend a service or business to another person.
To find out how satisfied employees are with HR’s services, you can measure the NPS of HR.

Using the Net Promotor Score, you can also measure to what degree people recommend working for the organization – employee net promoter score (eNPS). The NPS can be a solid HR KPI, depending on your strategic goals.

Manager effectiveness (index)

Various metrics can contribute to tracking manager effectiveness, including:

• Turnover and retention per manager 
• Engagement scores per manager 
• Team performance metrics
• Absenteeism per manager 

How a company measures the effectiveness of its managers will depend on the organization’s goals. Doing so helps it assess the impact of managers on, among other things, team satisfaction and productivity.

Percentage of cost of the workforce

This metric measures the proportion of an organization’s total expenses that is allocated to workforce costs, calculated by dividing workforce expenses by the organization’s total costs.

While not commonly used, this KPI can be valuable for identifying opportunities to reduce costs or evaluate the potential benefits of automation in streamlining operations.

Quality of hire

Put simply, quality of hire represents the value a new hire brings to a company. It indicates how much a new employee contributes to an organization’s long-term success.

The quality of hire demonstrates how effective HR is in recruiting and selecting candidates. Consistently maintaining a high quality of hire enables the organization to reach its strategic goals more easily. 

Turnover rate

Turnover is a common metric and an important KPI since high turnover can be very costly. Calculating employee turnover, however, is much trickier than it may seem. For an in-depth overview, you can check out our article about how to calculate employee turnover rate, in which we discuss various approaches and propose a best practice.  

Involuntary turnover rate

Not all turnover is voluntary. Involuntary turnover refers to the percentage of employees who leave the organization due to employer-led decisions, such as layoffs, terminations, or redundancies. This can be calculated as a percentage of either the total number of employee departures or relative to the total number of employees in the organization during the same period.

Voluntary turnover rate

This is the number of employee-led departures. Again, you can consider it as a percentage of the total separations or in relation to the total number of employees.

Unwanted turnover rate

Not all turnover is bad. It is usually positive when bad performers or actively disengaged people leave the organization. Unwanted turnover occurs when good or high-performing employees leave the company for reasons that could have been avoided (i.e., compensation, management, lack of development opportunities, etc.).

Training effectiveness

The training effectiveness evaluates how well a training program achieves its objectives by measuring its impact on employees’ skills, knowledge, and job performance, as well as its contribution to the company’s financial results. Effective training should deliver measurable improvements in these areas to justify its value.

Training ROI (Return on Investment)

As the name suggests, training ROI assesses how much a company gains financially from its investment in training programs by comparing the benefits (e.g., increased productivity) to the training costs. To calculate training ROI, subtract the total cost of the training from the net benefits gained, then divide that result by the total training cost.

90-day quit rate

This refers to the number of new hires that leave the company within three months (or a year if you opt for the 360-day quit rate). It is part of HR’s role to ensure that the right people are hired. Failing to do so will have a measurable, negative impact on the organization’s effectiveness.

HR KPIs vs. metrics

Every KPI is a metric, but not every metric is a KPI. That’s the main difference between the two. The table below gives a brief overview of HR KPIs and HR metrics.

Examples of what HR KPIs are not include: 

• Average length of service/tenure
• Average salary
• Average interviewing cost
• Average number of vacation days per employee
• Average number of training hours per employee
• HR-to-FTE ratio
• Employee training satisfaction.

These aren’t KPIs because they tell us nothing about effectiveness. For example, do we need 1 HR staff member per 100 employees or 1.5? Measuring the HR-to-FTE ratio alone doesn’t answer that question.

Put simply, HR KPIs are not just average employee data. They are measurable metrics directly linked to the organization’s strategic goals.  

Characteristics of good HR KPIs

As we’ve already mentioned, good HR KPIs are unique to the organization and its goals. Let’s explore two frameworks that you can use to shape and set KPIs that help you track your progress towards these goals.

Eckerson’s KPI framework

In a 2009 paper, Wayne W. Eckerson described several characteristics of “good” KPIs. These can be applied to creating KPIs in HR as well:

• Sparse: You should only focus on a few HR KPIs. After all, they are called key performance indicators for a reason. Focus on the essential ones for your organization and leave the rest out. The general rule remains the fewer, the better.
• Drillable: You should be able to drill into detail. Why aren’t we meeting our recruitment cost target? What groups are the costliest to recruit? By drilling down, you can predict your future success more easily and see where progress is lacking. 
• Simple: Users, including people from outside the HR department, need to understand the KPI. If it’s not simple, it is hard to communicate and focus on. 
• Actionable: HR only focuses on KPIs related to HR outcomes because they can influence these. HR is not responsible for revenue or sales success. Only focus on the KPIs that you can affect. 
• Owner: In line with the previous characteristics, KPIs need to have an owner. The owner is rewarded in case of success and is held accountable if the target isn’t hit. The owner of an HR KPI typically is a senior member of the management team, like a department leader or manager.
• Correlated: The KPI should be related to the desired outcome. When we speak about business targets, the HR KPIs need to be related to these business outcomes. Griffin (2004) states that there should be a direct link from KPI to goals, from goals to objectives, and from objectives to strategy.
• Aligned: We briefly touched on the alignment of HR KPIs earlier. KPIs shouldn’t undermine each other.

SMART goals framework

Most of us are familiar with another, more straightforward framework that summarizes the above. This alternative, defined by Hursman 2010, is the well-known SMART acronym. It stands for:

There’s a simpler framework that we are all familiar with that summarizes the above. The alternative, defined by Hursman (2010), is the well-known SMART acronym. This stands for

• Specific
• Measurable
• Attainable
• Relevant
• Time-Bound.

Knowing these criteria and applying them can help you create the relevant Human Resources key performance indicators your organization needs to succeed. 

Let’s look at an example of what this can look like. Take the internal promotion rate metrics. It’s a SMART KPI because it aligns with the criteria:

• Specific: It focuses on a clear outcome—tracking the percentage of employees promoted within the company.
• Measurable: The promotion rate can be quantified, making it easy to track progress over time.
• Attainable: Companies can reasonably influence this metric through internal development programs, mentorship, or succession planning.
• Relevant: It aligns with organizational goals like talent development, employee retention, and cost-saving measures by reducing external recruitment needs.
• Time-bound: The metric can be tracked over a specific period, such as monthly, quarterly, or annually, to evaluate trends and improvements.

This KPI highlights both employee growth and organizational efficiency, making it a valuable tool for tracking HR and business success.

An example of something that is not a SMART KPI is the average length of service. While it is simple to measure and attain, it lacks relevance and is not time-bound. The duration of an employee’s tenure doesn’t provide insight into their efficiency, productivity, or contribution to innovation, nor does it directly connect to the organization’s goals or priorities.

Leading vs. lagging KPIs

Key performance indicators can be leading or lagging. Kaplan and Norton (2007), the researchers who developed the Balanced Scorecard, explain the difference in their paper.  

Leading indicators are forward-looking and focus on causes or predictors of future events. They help anticipate outcomes. For example, productivity is a leading KPI for labor costs, as higher productivity can lower labor costs in the future.

Lagging indicators look backward and measure the results of past actions or developments. They reflect outcomes already achieved. For instance, if productivity is a leading KPI, sickness rate could be a lagging KPI, as it shows the effect of productivity-related efforts. Another example of a lagging KPI might be labor cost per employee.

Here’s an example: Let’s say the business goal is to enhance employee qualifications. This is relevant, especially in industries where continuous training is critical. In that case, a leading indicator could be time to proficiency—how quickly employees complete training and begin applying their skills. This predicts improvements in productivity and innovation.

A lagging indicator could be the percentage of employees who completed the qualification, showing the final outcome of training efforts.

As you may notice, leading indicators are often less precise but offer interesting insights into a KPI’s ongoing performance and potential outcomes. Lagging indicators, on the other hand, are more precise, but only after the fact.  

Using both types of KPIs helps build a well-rounded HR scorecard that tracks past achievements and forecasts future performance.

HR KPIs case study

As mentioned above, not all metrics are KPIs, and not all KPIs will assist in understanding HR performance. Let’s look at how a company in the maritime sector sets its HR KPIs for its recruitment department.

The Western maritime sector is in difficult waters. Fifty years ago, most ships were built in their home country; today, building large cargo ships and tankers in East Asia is much cheaper.

For the U.S.-based shipbuilding company in our HR KPIs case study, competing with cheap labor and steel from China was difficult. Therefore, a cost-differentiation strategy was not an option. The company decided to invest heavily in technology and innovation, knowing that most of its current client portfolio was interested in their high-tech shipbuilding skills (mostly smaller vessels) at a much higher price point.

As strategic goals don’t happen in isolation, the U.S. company had to cut costs while becoming more innovative through smarter hiring. This meant that: 

• They had to decrease their recruitment costs 
• They needed to hire more qualified professionals.

The image below shows what their recruitment strategy map looked like. The arrows indicate the internal relationships between the company’s different goals. The executive board decided on the strategic objectives, and based on those, HR established the HR goals.

To implement these goals, the company created specific KPIs. For example, they measured the reduction in lead time and evaluated their attractiveness as an employer. Once the KPIs were established, they assessed their current performance levels and set targets for improvement.

The resulting HR KPI framework outlined clear metrics aligned with their strategic goals, enabling the company to track progress and adjust strategies as needed.

HR KPI template

An HR KPI template is an excellent tool for monitoring key performance metrics in HR. It enables Human Resources teams to:

• Align their HR initiatives and activities with the company’s goals
• Measure the success of these initiatives over time
• Strive for continuous improvement. 

To help you get started, we have created a free, downloadable HR KPI template in Excel that is easy to customize:

HR KPI best practices

Let’s explore some best practices for implementing and tracking HR KPIs, for example: 

• Set KPIs based on organizational goals: As highlighted throughout this article, you need to define KPIs that align directly with the organization’s strategic objectives, focusing on outcomes that drive business success. For example, a company aiming to improve productivity might track KPIs like time to proficiency for new hires or task completion rate.
• Leverage people analytics and KPI dashboards: Apply analytics tools like Excel or your HRIS analytics capabilities to connect data points such as recruitment costs, employee satisfaction, and demographics for actionable insights. Create an HR dashboard with your most important KPIs to keep track of and provide a handy overview.
• Empower your HR team: Provide your HR team with the tools, training, and authority to effectively track, analyze, and act on KPI data. This includes investing in people analytics platforms, fostering a data-driven culture, and encouraging proactive decision-making based on insights. 
• Secure executive sponsorship: Engage organizational leaders to support HR initiatives by demonstrating how these efforts contribute to achieving key business objectives and improving overall performance. Ensure leadership understands the value of aligning HR strategies with measurable outcomes.   
• Track performance over time: Regularly analyze how you perform on your KPIs and other HR metrics to identify patterns and adjust strategies accordingly. 

A final word

HR KPIs are an excellent way for HR to contribute to the overall organizational strategy, providing measurable benchmarks to assess how HR contributes to business success. They not only track progress but also create a clear link between HR activities and the company’s broader objectives, such as improving productivity, enhancing employee satisfaction, or reducing costs.

Setting them, however, requires a thorough understanding of the company’s strategy and goals. This means HR must collaborate closely with leadership to identify key business drivers and determine how HR can support them.

FAQ

The post HR KPIs: Guide, 20 Examples & Free Template appeared first on AIHR.

In this article, we explore the intricacies of the HR dashboard. We compare it to the HR report, examine key functions and metrics, and discuss how to build an effective dashboard. We also share some examples. Let’s dive in!

Contents
What is an HR dashboard?
HR dashboard vs HR report
Key functions of an HR dashboard
HR dashboard metrics
Best HR dashboard tools
How to create an effective HR dashboard
HR reporting pitfalls to avoid
HR dashboard examples
Headcount dashboard in Excel: Template
FAQ

What is an HR dashboard?

An HR dashboard is a tool that provides HR teams with a visual overview of the most important HR metrics and KPIs in one place. It aggregates and displays information in a user-friendly format, often using graphs, charts, and tables. An HR dashboard gives an overview of the state of the workforce and it is key to strategic decision-making in HR.

HR dashboards typically include metrics related to recruitment, employee performance, turnover rates, absenteeism, training and development, employee engagement, and workforce diversity. Advanced dashboards may integrate real-time data and predictive analytics to forecast future HR needs or challenges.

HR teams can use various tools to create an HR dashboard, including Excel, Tableau, PowerBI, or their HRIS. Modern, interactive dashboards allow HR teams to gather and combine data from different HR and business systems and analyze this data without having to switch between tools.

HR dashboard vs. HR report

Both HR dashboards and HR reports focus on data and metrics to inform decision-making, but they differ significantly in terms of format, purpose, and functionality.

HR dashboards are highly visual, aiming to provide insights at a glance and enable ongoing monitoring of key metrics and trends. HR reports are typically text-heavy and often structured with tables and descriptive summaries. They’re intended for detailed analysis, documentation, and deeper explanations of data.

While HR dashboards are meant to be accessed for routine monitoring and decision-making, HR reports are often generated periodically (e.g., monthly, quarterly) for review or compliance purposes.

There are different types of HR reports, such as: 

• Headcount reports 
• Monthly HR reports
• Annual HR reports
• Turnover and retention reports
• Health and safety reports.

Both the HR dashboard and the HR report have their place in an HR strategy, allowing for high-level monitoring (dashboards) and detailed evaluation (reports).

For example, an HR dashboard might display a real-time view of employee turnover trends using an interactive chart that updates automatically. Meanwhile, an HR report might provide a detailed analysis of turnover data for the past quarter, including narrative insights and static tables.

Key functions of an HR dashboard 

The HR dashboard plays a big part in enabling HR to track workforce data and report on it. The tool has several key functions, including: 

• HR monitoring: Tracking key workforce metrics and regular reporting enables HR to keep a finger on the organization’s pulse. They can spot new trends and opportunities early on and address emerging problems before they significantly impact the business. 
• Management information: An actively monitored and managed HR dashboard – and the reports that derive from it – can help managers do their jobs better. A well-structured and easily digestible report can inform managers about relevant team and department developments.
  For example, suppose the customer support department struggles with high turnover and a high time to hire. In that case, managers will be more likely to emphasize retaining employees and be more aware of risks like longer replacement times when someone is about to leave. 
• Track problem areas: An HR dashboard is also a great way to track key problem areas transparently. Transparency in turnover rates per manager will encourage them to pay closer attention to retaining employees because their own reputation is on the line. By tracking areas of concern, HR can leverage its position to drive improvements.
• Strategic decision-making: Monitoring and analyzing data over time naturally gives HR teams insights into developing trends, budding issues, and more. This, in turn, allows them to make more strategic and data-driven decisions that align with the organization’s business goals and contribute to its success.
• Better communication: A well-designed HR dashboard that tracks data in real-time provides HR professionals with a wealth of information. The HR reports generated based on the dashboard data allow them to back up their ideas or initiatives with actual company data and hence improve their communication with the organization’s leadership and stakeholders.

HR dashboard metrics

A general HR dashboard should track metrics related to the workforce demographics and costs. Specialized dashboards might provide insights into specific areas like diversity, recruitment, and employee performance.

Here are some common metrics to showcase on an HR dashboard:

• Tenure: This metric measures the length of time employees stay with an organization. Tracking employee tenure can help identify trends in employee loyalty and engagement, and it provides valuable insights for workforce planning and retention strategies.
• Gender: A common distinction to drill into diversity data.
• Age: Age is becoming increasingly important in today’s multigenerational workforce. Age is also important for strategic workforce planning and succession planning, and it is often a key focus point for organizations that want to innovate and reorganize. 
• Education level: Educational levels should only be included when available and when relevant to the organization’s overarching goals. Otherwise, they risk being a ‘vanity metric’ in the HR reporting.
• Function type: A metric like function type or function clusters might help to distinguish different groups within the company. Examples include top management, middle management, and individual contributors.
• FTE: A Full-Time Equivalent is the hours worked by one employee full-time. The number of FTEs is often lower than the number of total employees. This is especially true if there are many part-time workers present in the organization. FTE provides an accurate measure of the total workload in the organization. People who work less than 1 FTE can be considered part-time workers. 
• Employees active: This metric represents the number of employees working at the organization. 
• Turnover: This metric represents the number or percentage of employees who left in the previous period.
• New hires: This metric represents the number or percentage of new employees who joined the organization within the last year. 
• Absenteeism rate: This metric represents the average percentage of time that employees were absent in the previous period. Another representation of this number is the total days of absence per employee. 
• Cost of absence: This metric is not a standard one, but it can make the previously mentioned absence rate more tangible by relating it to a financial number.
• Cost of labor: Labor cost is the total amount that an organization pays to its workforce. This number includes employee benefits and payroll taxes. The cost of labor can be divided into direct and indirect costs. Direct costs are the labor costs associated with people who contribute to the primary process (an assembly line worker, for instance). Indirect costs cannot be traced back to a specific level of production (a security guard guarding the factory, for example).
• Training cost: Training cost represents the total amount a company spends on training new hires and the existing workforce.
• Recruitment cost: This is the total cost of recruitment efforts. Typically, it includes the costs of external agencies, job advertisements, and, sometimes, lost productivity. The cost of recruitment is much more complex, though, as it also involves elements like the cost of management time in selection and training. All these components help calculate the cost per hire.
• Time to fill: This metric refers to the number of days between a position opening up and a candidate accepting that position. It will vary significantly between job types: software developers, big data analysts, and highly qualified salespeople are much harder to find than entry-level marketers, for example.

Bear in mind that this is by no means an exhaustive list. The metrics you’ll track on your HR dashboard will depend on your organization’s specific goals, priorities, and challenges, as well as the dashboard’s audience.

For example, senior executives may prioritize high-level metrics like turnover rates, headcount trends, and workforce costs, while HR managers may focus on more operational metrics such as time to hire, training completion rates, and absenteeism.

Best HR dashboard tools 

To get the most out of an HR dashboard, it is important to choose a tool that fits your organization’s needs and your current HR tech stack. Let’s take a look at some common HR dashboard tools and their advantages and drawbacks. 

Excel

It is fairly easy to create a basic HR dashboard in Excel. You can use a pre-created HR dashboard template directly in Excel or create tables and charts with the relevant HR data yourself.

Benefits and drawbacks

The biggest benefit of using Excel for your HR dashboard is the fact that Excel is (relatively) familiar to many people and is usually readily available.

But Excel has drawbacks, too. Its visualization, collaboration, and real-time data management capacities are limited, for example. Spreadsheets also don’t offer the best data protection, which can lead to all sorts of security risks. 

Tableau

Tableau’s HR dashboard software offers People Teams many ways to visualize their HR data, including motion charts, boxplots, pie charts, bullet charts, and more. 

Benefits and drawbacks 

The most obvious benefits of Tableau are its top-of-the-line data visualization features and, as a result, the fact that the software allows HR teams to showcase their data in a way that works for them. 

The other side of this is that the platform is more complex, which means that you will likely need at least one person on the team who knows (or is willing to learn) how to work with Tableau. 

Power BI

Microsoft’s Power BI is another tool that makes creating an HR dashboard and the subsequent aggregation, analysis, and visualization of data and reports very simple. 

Benefits and drawbacks

Since Power BI is a Microsoft product, integration with other Microsoft products such as Excel, SharePoint, and Azure is easy. This can be an important benefit as many businesses work with Microsoft products. Other advantages include the fact that it’s easy to use, offers real-time data processing, and is secure.  

As with any platform, there are also a couple of potential disadvantages of working with Power BI. The software is online-only, has limited customization options, and a rather steep learning curve for those who are unfamiliar with it. 

Asana

Asana is a task and project management platform. Its dashboard capabilities enable People Teams to use pre-built dashboard templates or to create custom ones for their HR processes.

Benefits and drawbacks

Asana’s software offers some interesting collaboration features. HR stakeholders and others involved can engage in discussions, co-edit dashboards, and leave comments, making it a good option for People Teams that need a collaborative dashboard tool.   

Disadvantages may include the fact that Asana doesn’t offer phone support and is relatively expensive.

HR tip

You might also want to look into dedicated HR dashboard platforms like Visier and Charthop. Such tools offer specialized features designed for HR needs, like advanced analytics, customizable reporting, and integration with existing HR systems.

How to create an effective HR dashboard

An HR dashboard is the most efficient way for HR teams to monitor, manage, track, and report on their HR KPIs (key performance indicators).  

Here’s what to consider when creating an HR dashboard:

• Choose the right tool: The ideal tool for one organization might not be the right option for another. Factors to consider here include:
  • The features you need (i.e., collaboration, visualization, etc.)
  • Vendor support
  • Whether the tool is easy to use or if you need a dedicated person who has experience with it
  • The available budget.
• Select critical metrics for your dashboard: Here, too, the key metrics for your HR dashboard depend on what kind of dashboard you want to create; they won’t be the same for a recruitment dashboard and an employee performance dashboard, for example. If it is a ‘generic’ one, some of the HR dashboard metrics mentioned earlier in this article may be useful.
• Focus on user-friendliness: HR dashboards should be easy to maintain and use to ensure they deliver value to the organization without creating unnecessary complexity or administrative burden. Focus on providing quick access to key metrics without overwhelming users.
• Prioritize accuracy: HR reporting is often seen as a hygiene factor. This means that, like hygiene, solid and accurate reporting is taken for granted and not fully appreciated. Imagine you’re out for a meal in a restaurant. You’re not likely to comment on the restaurant being clean; this is something we simply expect. But, if you get dirty cutlery or the toilets are messy, you complain. To relate this to HR, reporting is not noticed much unless errors occur. Solid reporting, like cleanliness in a restaurant, is essential in maintaining credibility.    
• Customize for stakeholders: If other stakeholders outside the HR department also require (regular) access to certain HR dashboards, you may want to involve them in the creation of those dashboards. What metrics do they believe are important, and how would they like to work with and use the dashboard?

HR reporting pitfalls to avoid

There are several pitfalls concerning HR reporting. It is important to address these, as doing so will prevent you from getting trapped in a never-ending reporting cycle.

• Avoid generating your reports manually: This is highly inefficient and will drain the capacity of your HR data department or person. See how you can automate your HR reporting, for example, by using HR software tools that integrate with your existing systems to pull and analyze data automatically.
• Don’t try to please everyone: If you can make 80% of the people happy with 20% of the information, that may be the best solution. Making an overly complicated dashboard and reporting on irrelevant data may lead to low engagement with the reports or dashboards and thus decrease their impact.
• Don’t ignore data errors: HR data will contain human errors. No matter how efficient your software, processes, and people are, there will be mistakes. When mistakes occur, fix them in the source systems. Make sure to create procedures to check accuracy when inputting data.  

HR dashboard examples

HR dashboards come in different shapes and forms. Here are a couple of examples of HR dashboards in action.

General HR dashboard

This HR dashboard provides a snapshot of workforce data, highlighting headcount distribution by grade, hiring trends, and employee movement by year.

Key metrics such as top talent and performers, recruitment costs, and promotions are displayed, along with turnover breakdowns (regretted and non-regretted).

Sickness & absence HR dashboard

This HR metrics dashboard focuses on absence information, and the tab displayed in the image below revolves around sickness in particular. It visualizes the average number of sick days taken per employee over the past year and their cost.  

Headcount dashboard in Excel

This Excel dashboard helps HR teams easily monitor workforce trends and patterns.

Recruitment dashboard

This recruitment dashboard example distinguishes between the company’s technical and non-technical hires. The dashboard provides real-time updates as we see the organization’s current hiring pipeline. It also includes the company’s top hiring sources for various departments.

General HRIS dashboard

This HRIS report is part of AIHR’s People Analytics Certificate Program, in which you can learn how to create this exact report by connecting multiple datasets using Power BI. The report is fully interactive.

If you’re new to Power BI, you can also watch this guide on using the tool to create interactive HR dashboards:

A final word

Whether it’s employee turnover, employee safety, or any other workforce-related topic, HR dashboards are a great way for People Teams and other stakeholders in the organization to get a picture of what’s going on. While they might take some time to set up, they can save countless hours in the long run by consolidating key data into one easily accessible place.

With clear visuals and real-time insights, dashboards help teams identify trends, address issues proactively, and make informed decisions. Plus, they foster transparency by ensuring everyone has the same understanding of workforce metrics.

FAQ

The post HR Dashboard: 5 Examples, Metrics and a How-To appeared first on AIHR.

This article explores some of the most common reasons for employee turnover and ways to prevent it. Let’s get started!

Contents
What is employee turnover?
Why you need to understand the reasons for employee turnover
Top reasons for employee turnover
Interaction among predictors of employee turnover
How to reduce employee turnover
FAQ

What is employee turnover?

Employee turnover refers to the rate at which employees leave a company within a specific time frame, often measured annually. There are several types of employee turnover:

• Voluntary turnover: An employee chooses to leave a company, like resigning for a new job or personal reasons.
• Involuntary turnover: An employer decides to part ways with an employee, often due to performance issues or layoffs.
• Functional turnover: This is when the departure of an employee is seen as positive for the company, like when a low performer leaves.
• Dysfunctional turnover: This refers to the loss of high-performing or valuable employees, which negatively impacts the organization.
• Employee attrition: Often used interchangeably with turnover, employee attrition is a gradual reduction in staff, usually through natural causes like retirements or resignations, without actively replacing those employees.

Turnover can be measured for the entire organization and by department, team, demographic groups, and other subcategories within the company. 

To calculate their employee turnover rate easily, organizations usually divide the total number of people who leave during a specific period by the average number of employees at the company during that same period. For example, if an organization with 1,000 employees encounters 100 departures over a year, its turnover rate is 10%.

Why you need to understand the reasons for employee turnover

There are multiple reasons why it’s essential for businesses to understand why their employees leave, including:

• Preventing unwanted turnover: If you understand why employees leave, you can do something about it. For example, data from exit interviews shows that people leave mainly because their compensation isn’t in line with the rest of the market. You can then see how you can start improving your compensation packages and eliminate it as a cause for unwanted turnover. 
• Cost saving: The average cost of replacing an employee is between one and two times their annual salary. Employee turnover often leads to knowledge and productivity loss and a drop in employee engagement and morale, all of which translate into extra monetary costs as well.     
• Building a stable workforce: A stable workforce positively impacts morale, while excessive turnover often leads to an increased workload and stress for those left behind. Less turnover also contributes to sustainable, long-term business growth through continuity in productivity, team dynamics, and institutional knowledge.
• Implementing targeted employee retention strategies. As mentioned above, when you know why people leave, you can implement targeted strategies to improve retention. For example, data from your new hire survey shows people find their onboarding doesn’t prepare them for their role and focuses too much on administrative tasks. Modifying your employee onboarding process can tackle this issue and prevent new hire turnover.

Top reasons for employee turnover

A comprehensive meta-analysis of research on employee turnover, drawing from data on over 60,000 employees, has revealed key factors that consistently predict why people leave their jobs. These insights highlight the top reasons behind employee turnover and clarify what drives employees to move on.

Some of these factors are easy to track, while others are harder to measure or are more abstract in nature.

Let’s take a closer look at the top drivers of employee turnover.

1. Stress

Stress causes people to leave their jobs. Highly stressful work environments typically have higher employee turnover rates and more cases of employee burnout than low-stress environments.

Examples of things that can cause stress include: 

• Role clarity: Clearly defined roles and responsibilities give people more support and are less likely to cause stress. 
• Role conflict: A role conflict occurs when an employee is expected to fulfill the duties of two contradictory positions. 
• Role overload: Employees need a number of resources (e.g., time, autonomy, budget, coaching, career opportunities, etc.) to do their jobs well.
  When employees don’t have sufficient resources and a taxing role, this leads to role overload and stress and often prompts them to leave. Excessive, unmanageable workloads are one of the most common causes of stress. If the sheer volume of work or tight deadlines are simply outside people’s capabilities, this will likely become a source of pressure.
• Overall stress: To build a buffer against work-related stress, people need to enjoy a good quality of life outside their work. For instance, a lack of work-life balance will only increase their stress levels.

How to measure stress

Stress is often subjective and, therefore, not always easy to measure. One way to do so, though, is by using employee surveys such as:

• Engagement surveys
• Employee pulse surveys 
• Stay interviews
• Exit interviews.

Other elements, like your organization’s absenteeism rate and the number of sick days taken, can also indicate that your employees experience a lot of stress.

2. Demographic

Demographic variables are a strong predictor of people’s turnover intentions and are easy to measure. Think of the following examples: 

• Age: Age is typically negatively associated with people’s intention to leave their employer. This means that younger people leave their jobs more frequently than older people. 
• Children: People with children are less likely to switch jobs. This is probably due to the extra responsibilities of being a parent.  
• Kinship responsibilities: The level of kinship responsibilities, the obligations or duties individuals have towards their family members or close relatives, influences their willingness to change jobs. This is likely because having more responsibilities discourages risk-taking.
• Marital status: People who are married are less likely to switch jobs than people who are not married. This is probably due to the extra responsibilities of marriage in line with the previous two factors.
• Tenure: The single most significant indicator of turnover is employee tenure. For example, people usually are more likely to leave in their fourth or fifth year than in their first year. Most people don’t want to be seen as job-hoppers, so they tend to work for at least a couple of years for the same company. On the other hand, when people work for a company for a very long time, they are less likely to ever work for another organization. 

How to measure demographic variables

Demographic information usually is easily accessible through an organization’s Human Resources Information System (HRIS).

3. Leadership

The age-old adagio “people leave their bosses, not their jobs” is confirmed by research and rings truer today than ever. Gallup data shows that the manager determines 70% of team engagement variance. The following elements matter in that regard:

• Supervisory satisfaction: Employees who are happy with their supervisors will stay with the organization for a longer period. 
• Leader-member exchange (LMX): The LMX theory focuses on whether or not the relationship with the leader is a two-way relationship.
  When managers see their team members as individuals and recognize their contributions to the team, people will appreciate their managers much more than when they feel like they are just one of the many. 

How to measure leadership 

Leadership variables are difficult to measure. However, when you have large teams, you can use them as a control variable in your analysis. For example, if one team loses employees much more rapidly than others, this might indicate something about the team manager’s leadership style.

Of course, a closer analysis is still needed to justify this conclusion and to determine what exactly needs to be improved; are we dealing with poor management and leadership practices, a lack of transparent communication, or toxic leadership, for instance?

4. Job satisfaction

People’s satisfaction with their jobs is another important turnover indicator. Consider the following factors in that regard:

• Job satisfaction: This is a much-used measure in surveys to gauge how satisfied people are with their jobs. 
• Job met expectations: Whether or not the job meets people’s expectations from before they started is an essential element of their happiness with that job. For example, if people expect to have more responsibilities or autonomy than they actually have, they are likely to leave. If there is a significant gap between their expectations and reality, people may leave the organization within just a couple of months. Companies can use methods like realistic job preview to prevent this from happening. 
• Job involvement: Job involvement refers to how engaged people are in their work. When their role aligns with their interests and they feel fully engaged, they are more likely to remain with the organization.

5. Work satisfaction

Work satisfaction is a factor very similar to job satisfaction. There is a subtle difference. Job satisfaction generally refers to the overall contentment an employee feels about their job, including factors like pay, work conditions, and relationships with co-workers. Work satisfaction specifically focuses on satisfaction derived from the tasks and responsibilities of the job itself—how fulfilling or engaging the work is and whether the employee feels motivated by the work they do.

In other words, work satisfaction zooms in more directly on the nature of the work itself.

How to measure job and work satisfaction

Satisfaction is subjective. To accurately measure job and work satisfaction, you can use surveys. The usual suspects mentioned earlier can also be excellent tools (e.g., pulse surveys, engagement surveys, stay interviews, and exit interviews).

6. Job content

This turnover predictor refers to how people experience their jobs. The following factors play an important part in this:

• Routinization: Most people don’t like to do the same thing day after day. A high degree of routinization is associated with an increase in productivity but also a rise in turnover. 
• Promotional chances: People are more likely to stay with a company when they know they have career advancement opportunities and can get a promotion. On the other hand, a lack of career progression can push people toward other companies.  
• Instrumental communication: The way people communicate within the company has an impact on employee turnover. Instrumental communication is goal-oriented and focuses on the sender. Examples are “Please update the client on the project status by the end of the day.” and “Could you schedule a meeting with the marketing team for next week?” This kind of communication helps define goals and targets and benefits practical, goal-oriented tasks.

How to measure job content

Surveys are a helpful way to assess the level of routinization, perceptions of career advancement opportunities, and the state of communication.

Job analysis can also help gather insights about the daily tasks of different roles, the degree of repetition in the work, and how much discretion or variety the employees experience. This data can provide a clearer picture of how structured or routine-based certain roles are within the organization.

7. External environment

Many people have a tendency to constantly compare their situation with that of others, both personally and professionally. This is also true for their jobs and work environments. The external environment refers to the external factors that influence an employee’s decision to stay or leave their job, particularly through comparisons with other opportunities. Two elements in particular are worth mentioning in this regard:

• Alternative job opportunities: People are less likely to leave when there are few alternative job opportunities, and vice versa. 
• Comparison to the present job’s alternatives: Even when various options are available, people are still less likely to leave if their current job is better than the alternatives. However, when the alternatives are superior – and when the grass really is greener on the other side – people are more likely to leave.

How to measure external environment

Some specialized HR consultancy firms have access to large amounts of detailed function data, which gives a relatively accurate description of the demand for a certain job. 

People with popular jobs can more easily find an alternative job, have more alternatives, and are more likely to be approached by recruiters. 

By comparing your organization’s job functions with their respective databases, you can estimate which employees will be most tempted to switch jobs. For example, a data analyst might be in higher demand than a secretary because the former is more sought-after and harder to replace.

8. Co-workers

People leave their jobs not only because of their managers but also because of their colleagues and the workplace culture. Co-workers are another factor that predicts employee turnover. These components, in particular, play a role: 

• Workgroup cohesion: Cohesion among colleagues is associated with lower rates of turnover. 
• Co-worker satisfaction: How happy people are with their co-workers relates to a lower likelihood of them leaving the organization.   

How to measure the co-worker variable

People’s perceptions of and attitudes toward their co-workers can be measured through employee surveys.

9. Compensation

Compensation is often still seen as an important predictor of why people leave. However, this is not always the case. In fact, pay is a non-significant predictor of people’s intention to leave. Pay satisfaction and perception of pay equity, however, are. Here’s why: 

• Pay satisfaction: As mentioned above, people tend to compare things. As such, they are more likely to leave their jobs when a colleague or friend with the same job earns considerably more. In other words, it is not the de facto pay that matters but someone’s satisfaction with this pay.
• Distributive justice: Distributive justice occurs when employees perceive how they are being compensated as equal and fair. For example, when a manager with only a few extra responsibilities earns two or three times more than other employees, people will lose motivation and become more likely to leave their jobs.   

How to measure compensation

You can benchmark your pay data against market data to find out where your organization stands. When someone believes they’re underpaid or receive inadequate compensation, they will be more likely to be dissatisfied and leave. Benchmarking data can give you an indication of whether you are underpaying or overpaying your people.

10. Indicators

There are several other reasons for employee turnover, signs that might indicate whether or not people will leave the company, including: 

• Lateness: When people are consistently late, this could result from demotivation and indicate that they will soon leave the company. 
• Absenteeism: People who are absent more often than others are also more likely to leave. One reason for this could be that they take a sick day to interview for a new job or because they are less motivated. Absenteeism is the strongest indicator of turnover intentions, together with tenure. 
• Performance: Another important factor is performance. People with low performance are likelier to leave than those with high performance.
  However, when people perform exceptionally well over a longer period of time, they become more likely to leave, as this may indicate that they experience a lack of challenge and change.  

How to measure these indicators

Organizations usually already record absenteeism data, which can be used to predict turnover. Performance data can also be easily obtained if the company uses a performance management system.

Interaction among predictors of employee turnover

Predictors of employee turnover often interact with each other. Depending on this interaction, some effects will be enhanced while others will be reduced.

For example, marital status tends to influence turnover differently at various life stages. Someone who marries in their early twenties may be more focused on career-building and less likely to prioritize family life immediately. In contrast, someone who marries in their thirties and is planning to start a family may prioritize work-life balance more, affecting their job choices.

Another example is workload and gender roles. A woman with a demanding job might be more likely to seek flexible work arrangements after having children, while a man, under societal pressure to provide financial stability, might remain in the workforce despite a heavy workload. Here, gender norms interact with workload to produce different turnover outcomes.

These examples show how predictors like age, gender, marital status, and workload combine and influence employee decisions in complex ways. This phenomenon called interaction highlights the importance of considering multiple factors when predicting turnover.

How to reduce employee turnover

Once you are aware of the above-mentioned reasons for employee turnover, you can track them and actively work on reducing the turnover in your organization. Here are a few ideas to consider:

• Thoroughly understand the drivers of employee turnover in your organization: This is your starting point. Why are people leaving the company? Are they unhappy with their compensation? Do they not get along with their manager or co-workers? Do they dislike their job? When you know why people quit, you can create a targeted retention strategy to avoid this.
• Keep track of employee turnover in detail: Detailed turnover data is essential for a thorough understanding of what causes people to leave. Track this metric in various subcategories, such as the organization’s different departments and roles, geographic locations, gender, age, tenure, etc. 
• Conduct exit interviews: People who are leaving tend to speak more frankly than those who remain with the company. Exit interviews can, therefore, provide you with a wealth of information to identify patterns and areas where improvement is needed. 
• Target your retention efforts: Based on the information you gather about why people leave and in what part of the company, you can target your retention efforts. Depending on where there is the highest urgency (i.e., new hire turnover, customer service team departures, manager turnover, etc.), you can take action first. 
• Conduct stay interviews: While stay interviews are not as commonly used as employee surveys or exit interviews, they can be an excellent way to do two things: 1) uncover solutions to potential causes of employee turnover, hence enabling you to be proactive, and 2) hear directly from your employees why they enjoy working at the organization and why they are staying.        
• Focus on the fundamentals. As with everything, preventing employee turnover starts with having a solid foundation and creating an environment that fosters engagement. In our HR trends for 2025, we identify a couple of key ingredients for this:
  • Fair wages, safe working conditions, reasonable working hours
  • Adequately resourced managers with the tools to provide stability and support
  • Purpose-driven work that enables valuable contributions
  • Meaningful recognition with clear growth opportunities
  • Creating an environment where employees feel heard in combination with strong team connections.
• Foster open communication. Transparent communication in the workplace helps employees understand where they stand and what’s expected of them. It also clarifies their career growth opportunities, learning and development options, and performance goals, which can boost engagement and reduce uncertainty about their future within the company.

Wrapping up

Fighting turnover begins with knowing the reasons for employee turnover in your organization. The turnover predictors mentioned in this article can be a good place to start looking. Once you have identified the main drivers of employee turnover in your company, you can create a targeted strategy to reduce it. Not only will it help you retain talent and create a more stable, engaged team over the long term, but you’ll also save significant costs for your organization.

FAQ

The post 10 Top Reasons for Employee Turnover & How To Prevent It appeared first on AIHR.

Positive company culture has many business advantages, so you should know how to measure it and which relevant metrics to track. This article discusses 19 important culture metrics to track and why they matter.

Contents
What are culture metrics?
Why tracking culture metrics matters
19 culture metrics to track and why
7 best tools and methods to track culture metrics
FAQ

What are culture metrics?

Culture metrics are quantitative and qualitative measures used to assess an organization’s cultural aspects, such as its values, behaviors, and social dynamics. They help companies understand how well their culture aligns with strategic goals, employee satisfaction, and overall performance.

Factors like employee engagement, leadership behavior, communication effectiveness, inclusion, and adherence to core values can influence these metrics. For example, employee surveys, retention rates, feedback on work-life balance, and measures of collaboration are all indicators of an organization’s cultural health.

“Culture is a living, breathing thing that changes and moves over time. It’s crucial for leaders to keep their eyes on the pulse and heartbeat of organizational culture, proactively monitoring it to see whether it’s enabling or inhibiting organizational progress.”

Dieter Veldsman, Chief Scientist (HR and OD) at AIHR

Why tracking culture metrics matters

Measuring the current state of a company’s culture can help you identify areas of concern and address them before they escalate. Measuring organizational culture also allows you to implement initiatives aligned with employee needs, company values, business performance, and strategic vision.

Effective culture metrics not only diagnose potential issues but also track progress over time, allowing leaders to make data-driven decisions to strengthen organizational culture.

“Before measuring and tracking culture, it is important to be clear on what type of culture you want in the organization, and more importantly, what are the behaviors that characterize that culture.  For example, a high-performance culture might be measured by metrics related to market results, while a high innovation culture will require measures related to a number of ideas, improvements, and new patents,” explains Dieter Veldsman, Chief Scientist (HR and OD) at AIHR,

HR tip

Differentiate between culture and climate, and track both. It can help to see culture as the overarching way things are done within an organization, highlighting decision-making processes and celebrated behaviors. Climate, however, refers to a company’s current mood, and fluctuates much more based on current events and pressure on the business.

19 culture metrics to track and why

Tracking the “right” culture metrics is essential for gaining insights and driving improvements. Deciding what metrics to track may vary by company size, industry, or location.

The following list provides 19 key culture metrics that HR should monitor:

1. Diversity, Equity, Inclusion, and Belonging

Diversity, Equity, Inclusion, and Belonging (DEIB) metrics measure how well an organization fosters a diverse, equitable, and inclusive environment where all employees feel they belong. They assess the representation of various demographics, fair and equitable access to opportunities, and how accepted and respected employees feel.

Why track these metrics?

• Equitable opportunities: DEI metrics identify demographic disparities in hiring, compensation, promotion, and retention. This allows you to address gaps and develop solutions to ensure all employees have equal opportunities to succeed.
• Engagement monitoring: A more inclusive culture typically helps enhance employee engagement and satisfaction.
• Top talent attraction: A strong DEIB philosophy is more likely to attract strong, diverse talent. Conversely, candidates nowadays tend to reject companies that lack diversity.
• Reduced turnover: Employees who feel included and heard are less likely to resign, which decreases turnover rates and, in turn, minimizes hiring costs.

2. Work-life balance 

This metric gauges employees’ perceptions of their ability to balance work responsibilities with their personal lives. High work-life balance scores indicate a supportive work environment that values and promotes employee wellbeing.

Formula: Work-life balance score = (employee rating of work-life balance / total employees) x 100

Why track this metric?

• Increased productivity: Employees who have a healthy work-life balance are typically more productive.
• Reduced burnout: Tracking this metric can help you prevent employee burnout by identifying and proactively addressing issues that cause work-life imbalance.
• Enhanced job satisfaction: An organization that actively promotes work-life balance will likely increase employee satisfaction.

3. Mentorship and development participation

This metric measures the percentage of employees participating in mentorship or development programs, reflecting the company’s commitment to professional growth and development. It can also highlight if these types of programs are lacking in effectiveness or number.

Formula: Mentorship participation rate = (number of employees in mentorship programs / total employees) x 100

Why track this metric?

• Skills development: The correct programs can help employees improve their existing skills and develop new ones to strengthen their contributions to their teams and the overall organization.
• Career advancement: Tweaking current programs or adding new ones based on participation and feedback allows your company to support employees’ career progression better.
• Employee retention: Employees who feel supported in their professional growth development are more likely to remain with the company.

4. Onboarding satisfaction

Onboarding satisfaction metrics evaluate how new employees perceive their onboarding experience. This provides important insights into the effectiveness of your organization’s onboarding process and which areas need improvement.

Formula: Onboarding satisfaction score = (total satisfaction ratings/number of new hires) x 100

Why track this metric?

• Improved retention: A positive onboarding experience will make new hires feel welcome, more prepared for their roles, and in turn, more willing to remain at the company.
• Faster integration: This also helps new hires integrate more quickly and effectively into their teams and the company culture.

5. Psychological safety

This metric measures how safe and supported employees feel in speaking up and taking risks without fear of negative consequences or retaliation.

Formula: Psychological safety score = (positive feedback on safety / total feedback) x 100

Why track this metric?

• Greater innovation: A psychologically safe work environment encourages creativity and innovation by creating a “safe space” for new ideas.
• Employee wellbeing: It also supports employee mental health and wellbeing, leading to greater job satisfaction.
• Open communication: A safe, professional environment can foster open, honest, and constructive communication.

6. Trust in leadership

This metric measures employees’ level of trust in their leaders, particularly with communication and overall leadership effectiveness, and whether management leads by example.

Formula: Trust in leadership score = (total positive ratings of leadership/number of responses) x 100

Why track this metric?

• Employee engagement: When employees feel they can trust their leaders, they naturally engage more at work.
• Leadership effectiveness: This metric can help you identify areas where leaders can improve their communication and support.
• Organizational culture: It also reinforces a culture of transparency, integrity, and leading by example.

7. Internal promotion rate

This metric tracks the percentage of promotions within an organization, highlighting the effectiveness of career development and succession planning programs.

Formula: Internal promotion rate = (number of internal promotions / total promotions) x 100

Why track this metric?

• Career development: A healthy internal promotion rate highlights the company’s commitment to employee growth and advancement.
• Talent utilization: This way, the company can also ensure it uses employees’ talents to their fullest potential instead of letting them go to waste.

8. Recognition and reward frequency

This metric measures the company’s approach to appreciating its employees and how often it recognizes and rewards them for outstanding contributions.

Formula: Recognition frequency rate = (number of recognitions / total employees) x 100

Why track this metric?

• Employee motivation: Regular recognition and rewards for outstanding performance can boost employee morale and motivation.
• Performance improvement: Knowing the company will recognize and reward them also encourages strong performance among employees.
• Retention: This also helps retain top performers, as they know they will get credit for their hard work.

9. Employee satisfaction score

Employee satisfaction scores gauge overall employee satisfaction with their jobs, professional environment, teams and managers, and work culture.

Formula: Employee satisfaction score = (total satisfaction ratings / number of responses) x 100

Why track this metric?

• Understand overall wellbeing: The employee satisfaction score gives you a good idea of employee wellbeing and happiness in a professional context.
• Problem identification: This knowledge also helps you identify areas for improvement in the workplace.
• Retention and engagement: High satisfaction scores correlate with increased engagement and retention.

10. Employee feedback frequency

This metric tracks how often employees provide feedback, representing their level of communication and engagement within the organization.

Formula: Feedback frequency rate = (incidences of feedback given / total employees) x 100

Why track this metric?

• Continuous improvement: Regular employee feedback encourages a culture of constant improvement and dialogue. If employees only sporadically give feedback, this metric may reveal underlying issues you can address in order to ensure regular feedback.
• Employee engagement: Easily accessible feedback mechanisms and channels show employees the company values their input and are likely to increase employee engagement.
• Problem resolution: Regular employee feedback can also help highlight issues and allow you to address them promptly.

11. Employee Net Promoter Score (eNPS)

eNPS measures how likely employees are to recommend their company to others as a good employer. This reflects overall employee satisfaction, as well as their commitment to the organization.

Formula: eNPS =  % of promoters (employees who would recommend the company) – % of detractors (employees who would not recommend the company)

Why track this metric?

• Employee advocacy: High eNPS indicates strong employee advocacy and job satisfaction.
• Cultural insight: Your organization’s eNPS can provide insights into the overall workplace culture.
• Improvement areas: It can also help you pinpoint how you can improve employee experience and engagement.

12. Absenteeism rate

This metric measures the frequency of employee absences. A pattern of absence among individuals, teams, or functions can indicate underlying issues, such as job dissatisfaction, an unsafe work environment, lack of employee motivation, or health concerns.

Formula: Absenteeism rate = (number of absent days / total workdays) x 100

Why track this metric?

• Employee wellbeing: Tracking the absenteeism rate can help you spot potential morale or health issues among employees.
• Productivity impact: Addressing frequent absences can help prevent further productivity loss by exposing and solving underlying issues.
• Policy effectiveness: Addressing issues related to frequent absenteeism can also enable you to reassess your company’s absence policies and make the necessary changes to minimize absenteeism.

13. Turnover rate

The turnover rate tracks the percentage of employees who leave the organization within a specific timeframe (e.g., six months or one year).

Formula: Turnover rate = (number of departures / average number of employees) x 100

Why track this metric?

• Retention strategies: This metric can help identify areas where your company’s retention strategies may need adjustment.
• Cultural insights: You can then determine if cultural factors are influencing the turnover rate (i.e., the link between company culture and employee resignations).
• Cost management: Addressing issues leading to higher turnover will help you minimize the costs associated with hiring replacements for departing staff.

14. Employee engagement index

The employee engagement index measures overall employee engagement levels using employee engagement survey scores.

Formula: Engagement index = (total engagement survey scores/number of employees) x 100

Why track this metric?

• Productivity driver: High engagement often correlates with higher productivity.
• Improvement focus: If your company’s employee engagement index is low, you can seek out the root causes and address them promptly.

15. Training and development investment

This metric evaluates how much time and money the organization invests in employee training and development.

Formula: Training investment rate = (total investment in training / total number of employees)

Why track this metric?

• Focus on skills enhancement: Tracking this metric allows you to determine if enough employees are receiving the training they need to improve their professional skills.
• Competitive edge: Ensuring your company’s training and development are comprehensive and beneficial to your workforce can give the organization an edge over competitors who don’t prioritize their staff’s growth.

16. Innovation and idea contribution

This metric tracks the number of employee ideas or suggestions the company implements and shows how frequently employees contribute such ideas.

Formula: Innovation contribution rate = (number of employee ideas implemented / total number of employees) x 100

Why track this metric?

• Assessment of innovation opportunities: Minimal employee contribution or implementation of ideas may indicate a work culture that doesn’t encourage or facilitate innovation enough.
• Employee engagement: Encouraging and valuing employee contributions to innovation can increase engagement among the workforce.
• Process improvement: This metric also allows you to identify areas for improving organizational processes surrounding employee innovations and proposals.

17. Employee wellbeing index

The employee wellbeing index measures how employees perceive their overall wellbeing, including mental and physical health.

Formula: Wellbeing index = (total wellbeing scores from surveys/number of employees) x 100

Why track this metric?

• Health and wellness: A low employee wellbeing index will prompt you to seek out and address the issues affecting employee health and wellness.
• Productivity impact: Robust employee wellbeing initiatives can positively influence productivity by helping staff avoid burnout.

18. Collaboration and teamwork effectiveness

This metric measures the effectiveness of collaboration and teamwork within the organization.

Formula: Collaboration effectiveness score = (total incidences of positive feedback on collaboration / total feedback incidences) x 100

Why track this metric?

• Team performance: This metric helps identify the strengths and weaknesses of different teams and how you can help them improve.
• Employee satisfaction: This metric can help you pinpoint areas for improvement and foster a collaborative work environment, which can increase job satisfaction.

19. Leadership development opportunities

This metric assesses how well leadership development programs prepare leaders to manage teams and drive organizational success.

Formula: Leadership development score = (total positive feedback on leadership programs / total feedback) x 100

Why track this metric?

• Leadership qualification: This metric can help you improve your company’s leadership development initiatives to ensure its leaders are qualified and prepared to lead effectively.
• Organizational success: By helping to develop strong leadership, you can contribute significantly to organizational success.

7 best tools and methods to track culture metrics

To effectively track and measure these culture metrics, you can use a variety of tools and strategies. These include:

1. Employee surveys: Surveys help gather data on employee satisfaction, engagement, and various other culture metrics. You can customize tools like SurveyMonkey or Google Forms to capture information on specific metrics.
2. HR analytics software: Platforms such as Culture Amp, Officevibe, and Qualtrics provide comprehensive solutions for measuring and analyzing culture metrics. They offer dashboards, reporting features, and benchmarking capabilities.
3. Focus groups and interviews: Focus groups and interviews offer qualitative insights and more nuanced discussions into employee experiences and perceptions.
4. Performance management platforms: Tools like 15Five or Lattice help track employee performance, feedback, and development, integrating cultural metrics with performance management.
5. DEIB dashboards: Specialized dashboards to track DEIB metrics can offer real-time data and analytics. You can even create a DEI dashboard for your organization.
6. Pulse surveys: These brief, frequent surveys gather ongoing feedback and provide real-time views of employee sentiments and engagement.
7. Benchmarking tools: These tools help you compare your company’s metrics against industry standards to gauge performance and identify areas for improvement.

HR tip

Similar to your personal health, you need tools to help you measure and understand your company’s culture. Use a combination of quantitative and qualitative data sources, as they will give you different insights. But beware of measuring for measurement’s sake—all data you collect should have a purpose, and result in an action.

To sum up

When a company’s culture aligns with its business strategy, it accelerates growth, improves employee engagement, reduces risk, and builds the company’s brand. 

Culture metrics provide insights into the health of a company’s internal environment. By tracking these metrics, you can identify strengths and areas for improvement, leading to increased employee satisfaction, productivity, and overall business success. This will then help you build and foster a positive, productive environment for the entire workforce.

FAQ

The post 19 Culture Metrics To Track When Measuring Company Culture (in 2025) appeared first on AIHR.

Real-time workforce management metrics that provide instant insights into productivity, engagement, and resource allocation can offer a competitive edge. They can also facilitate more agile decisions, optimize workforce efficiency, and better align staffing strategies with long-term business goals.

Contents
What are workforce management metrics?
What are workforce management KPIs?
Workforce management vs. workforce planning
25 workforce management metrics to track
FAQ

What are workforce management metrics?

Workforce management (WFM) is a strategic process that aligns staffing with business goals, ensuring the right employees with the right skills are available when needed. It helps maximize productivity while minimizing costs, contributing to overall efficiency and employee satisfaction.

WFM metrics are key indicators that assess WFM effectiveness, providing insights into employee performance, productivity, and resource allocation. Common metrics like utilization rates, absenteeism, and labor costs enable businesses to make informed decisions, optimize scheduling, and improve operational efficiency.

These metrics also enhance the employee experience by preventing overwork, boosting satisfaction, and improving retention. Dieter Veldsman, Chief Scientist (HR and OD) at AIHR, says, “WFM metrics help the organization deliver on expectations. Organizations that do this well can deal with unforeseen circumstances and drive expected outcomes and outputs.”

What are workforce management KPIs?

Workforce management KPIs (Key Performance Indicators) are measurable values that show how effectively a company is meeting its workforce-related goals.

Unlike broader metrics that track general employee performance and efficiency, KPIs are directly tied to strategic business objectives, offering a more focused evaluation of WFM efforts and their business impact.

These KPIs assess key areas like employee productivity, turnover, schedule adherence, and labor cost efficiency. By aligning workforce KPIs with broader business goals, companies can monitor how well their workforce supports overall objectives.

Workforce management vs. workforce planning

While not mutually exclusive, workforce management and workforce planning (or strategic workforce planning) are different approaches to handling workforce matters with different purposes and intended outcomes. Here are the main differences between the two:

25 workforce management metrics to track

Here are 25 crucial WFM metrics you should track to ensure optimal workforce efficiency, productivity, and engagement at your organization:

1. Time to hire

Time to hire refers to the length of time between a candidate applying for a position and accepting an offer.

Here is how to calculate time to hire:

Time to hire = Total time taken to hire ÷ total number of hires

A shorter time to hire typically allows companies to secure top talent ahead of their competitors. Conversely, long hiring times can lead to operational delays and affect the candidate experience. Tracking this helps streamline the recruitment process and make it more cost-effective.

2. Time to productivity

This metric tracks how long it takes for a new hire to reach full productivity, starting from their hire date until they perform at an optimal level.

Measure the time between the employee’s start date and when they become fully productive, using performance feedback to identify the point of total productivity.

A shorter time to productivity indicates that onboarding and training are effective, while longer onboarding periods can hurt overall efficiency. Tracking this metric helps companies ensure that new hires contribute quickly, improving overall ROI.

3. Employee productivity

Employee productivity measures how efficiently employees complete tasks and achieve performance targets. You can calculate it based on output per hour worked.

This is how to calculate this metric:

Employee productivity = Output (units produced or services completed) ÷ total hours worked

4. Employee performance ratings

Performance ratings assess individual employees based on their job performance, typically through reviews by managers or self-assessments.

Consistent performance tracking helps identify high performers who may be candidates for promotion and employees who may need additional training or support. This metric supports data-driven decisions about promotions, raises, or performance improvement plans (PIPs).

5. Employee engagement

Employee engagement measures how committed employees are to their work and the organization. This can be assessed through surveys, feedback, and behavior metrics using tools like pulse surveys, stay interviews, performance reviews, and focus groups.

Engaged employees tend to be more productive, stay with the company longer, and contribute positively to the business. Tracking engagement helps companies identify and address factors affecting motivation, such as job design, leadership, or work environment.

6. Employee satisfaction index

The employee satisfaction index (ESI) measures job satisfaction using three questions, each scored on a scale of one to 10.

Here is how to calculate the employee satisfaction index:

Employee satisfaction index = ([{Question mean value ÷ 3} – 1] ÷ 9) x 100

High employee satisfaction leads to better performance, higher retention rates, and reduced absenteeism. Tracking this metric can highlight areas where improvements are needed, such as communication, benefits, or work environment, which ultimately enhances retention and engagement.

7. Employee grievance rate

This metric tracks the number of formal grievances employees file regarding issues like workplace conditions, harassment, or management practices.

Here is how you calculate the employee grievance rate:

Employee grievance rate = (Total grievances ÷ total number of employees) x 100

High grievance rates can indicate systemic problems with company culture, management, or policies. Addressing these issues quickly can improve employee satisfaction and reduce turnover.

8. Employee health and wellness participation rate

This metric tracks employee participation in health and wellness programs the company offers. This can include gym memberships, mental health resources, or health screenings.

The employee health and wellness participation rate is determined by this formula:

Employee health and wellness participation rate: (Number of participants ÷ number of eligible employees) x 100

High participation in wellness programs can improve overall employee health, reduce absenteeism, and boost morale. Low participation might indicate that programs are not accessible or relevant to employees, providing an opportunity for adjustment.

9. Employee tenure

Employee tenure measures the average length of time employees stay with the company.

Use this formula to calculate employee tenure:

Employee tenure = Total years of service for all employees ÷ total number of employees

Longer tenure generally indicates employee satisfaction, loyalty, and a stable workforce. Short tenures can signal poor job fit, lack of growth opportunities, or unsatisfactory working conditions. By understanding tenure trends, you can better anticipate talent replacement needs and build talent pools to meet these needs.

10. Employee net promoter score

Employee net promoter score (eNPS) measures employee loyalty and satisfaction by asking how likely they are to recommend the company to others as a good place to work.

Here’s how to calculate your company’s eNPS score:

eNPS = % of promoters (employees who would recommend the company) – % of detractors (employees who would not recommend the company)

A high eNPS indicates strong employee loyalty and satisfaction, while a low score suggests dissatisfaction and a risk of turnover. Tracking eNPS regularly provides insight into the company culture and how employees perceive it.

11. Employee attendance

Employee attendance refers to how regularly employees show up for work as scheduled, factoring in both presence and punctuality. It encompasses full days worked and partial attendance, like late arrivals or early departures.

You can calculate employee attendance using the following simple formula:

Employee attendance = (Number of days worked ÷ total scheduled workdays) x 100

Unplanned absenteeism can slow productivity, increase other employees’ workloads, and disrupt project timelines. Monitoring this metric can reveal underlying issues like job dissatisfaction or health concerns, allowing for early intervention.

12. Absenteeism rate

The absenteeism rate tracks the percentage of days employees are absent without prior approval, including unplanned sick days and leave.

“Absenteeism is often an indicator of other factors influencing workforce effectiveness. HR needs to look for patterns in the data. Are people absent more on certain days? Is there a trend in terms of certain role families? These insights are crucial to ensure an understanding of workforce capacity and underlying risks.”

Here’s how to calculate your company’s absenteeism rate:

Absenteeism rate = (Number of unplanned absent days ÷ total scheduled workdays) x 100

High absenteeism can disrupt operations, reduce team efficiency, and affect customer satisfaction. Consistent tracking of absenteeism can help identify patterns of disengagement or health issues. You can then adjust policies to better support employee wellbeing.

13. Absence duration

Absence duration tracks how long employees are absent during each period of leave (e.g., sick leave, personal leave).

Here is how to calculate this metric:

Absence duration = Total days of absence ÷ number of absence events

Long absences can significantly impact team productivity and morale. Tracking this metric helps organizations identify and address long-term health issues or disengagement, ensuring absence policies support both employee wellbeing and operational needs.

14. Absence frequency

Absence frequency measures the number of instances in which employees are absent, regardless of the total days missed.

Use this formula to calculate absence frequency:

Absence frequency = Number of absences ÷ number of employees

Frequent short-term absences can disrupt team cohesion and productivity. Tracking absence frequency helps identify patterns that could signal dissatisfaction, health issues, or poor management practices.

15. Overtime hours

Overtime hours track how much time employees work beyond their contracted hours.

Here is how to calculate overtime hours:

Overtime hours = Total overtime hours worked ÷ total number of employees

Regular overtime can indicate insufficient staffing levels or unevenly distributed workloads. This can lead to employee burnout, higher turnover, and increased labor costs. Monitoring overtime ensures employees are not overworked and appropriately allocated labor resources.

16. Turnover rate

Employee turnover rate measures the proportion of employees who leave the company within a specific timeframe, either voluntarily or involuntarily. Dieter says, “Understanding the trends related to turnover helps organizations proactively plan for replacements and build a robust and ready talent bench.

“As more data becomes available, we can build predictive models of when turnover will occur, ensuring we put preventative measures in place or have ready-to-execute replacement strategies.”

You can calculate the turnover rate using the following simple formula:

Turnover rate = (Number of separations during the period ÷ average number of employees) x 100

High turnover rates can indicate low job satisfaction, poor management, or inadequate compensation. Constant turnover can incur high hiring and training expenses and negatively affect team morale. Tracking turnover allows you to adjust strategies to improve retention.

HR tip

Align metrics with business goals: Ensure the WFM metrics you track are directly aligned with your organization’s strategic objectives. For example, if improving customer satisfaction is a key goal, track metrics like employee engagement and training effectiveness, as these can significantly impact customer interactions.

17. Voluntary vs. involuntary turnover

This metric distinguishes between employees who leave by choice (voluntary) and those the company terminates or lays off (involuntary). Dieter says, “Knowing why people leave is important, as these insights should drive future strategies regarding retention.

“Exit interviews and surveys are, however, a very unreliable source of information. We need to dive deeper into other types of data sources to get to the real reasons behind why employees leave.”

Here’s how you can calculate these two metrics:

Voluntary turnover: (Number of voluntary leavers in a given period ÷ number of employees in the same period) x 100
Involuntary turnover: (Number of involuntary leavers in a given period ÷ number of employees in the same period) x 100

High voluntary turnover can signal job dissatisfaction or lack of engagement, while high involuntary turnover may indicate poor hiring or performance management practices. Tracking these two types of turnover separately helps companies understand and address the root causes of both types of turnover.

18. Total recordable incident rate

Occupational Safety and Health Administration (OSHA) uses total recordable incident rate (TRIR) to measure all work-related safety incidents leading to medical treatment beyond first aid, loss of consciousness, death, days of restricted work, lost time, and transfer to another job.

It established 200,000 as the benchmark to represent the total hours 100 employees would log in 50 weeks, based on a 40-hour work week.

Here’s how to calculate TRIR:

Total recordable incident rate (TRIR) = (Total number of reportable incidents x 200,000) ÷ total hours worked in the tracked period

Tracking this safety metric—especially in high-risk industries like construction—helps you understand patterns in safety incidents and their causes so you can identify critical improvement areas.

HR tip

Regularly review and adjust metrics: Workforce dynamics and business needs evolve over time, making it necessary to review and adjust your metrics regularly. Conduct periodic assessments to ensure the metrics you’re tracking are relevant and can provide actionable insights. Engage with employees to gather feedback on the metrics and make adjustments as needed.

19. HR-to-employee ratio

This metric compares the number of employees on the HR team to that of the organization’s total workforce.

To calculate the HR-to-employee ratio, apply this formula:

HR-to-employee ratio = Number of HR employees ÷ total number of employees

A well-staffed HR team is crucial for employee relations, compliance, and workforce management. A low ratio may indicate an overstretched HR department, which can lead to inefficiencies in recruitment, onboarding, and employee support.

20. Cost per hire

Cost per hire calculates the costs associated with the new employee hiring process. These costs include sourcing and recruitment advertising, onboarding, and referral bonus programs (among others).

The cost per hire is determined by this formula:

Cost per hire = (Internal recruiting costs + external recruiting costs) ÷ total number of hires

High hiring costs can strain budgets, especially in industries with high turnover rates. Tracking this metric helps companies optimize their recruitment and onboarding processes, reducing unnecessary expenses.

21. Internal promotion rate

This metric measures the percentage of leadership or higher-level positions filled by current employees rather than external hires. Dieter says, “Share success stories of internal employees moving within the organization.

“This showcases that the organization prioritizes the development of its own employees and is an employer where people can build a career, not just have a job.”

Calculate the internal promotion rate using the following formula:

Internal promotion rate = (Number of internal promotions ÷ total number of positions filled) x 100

A high internal promotion rate shows that the company provides growth opportunities and internal mobility for employees, which boosts morale and retention. It also reduces recruitment costs since internal recruitment is often less expensive than external hiring.

22. Schedule adherence

Schedule adherence measures how closely employees abide by their assigned work schedules, particularly in shift-based environments.

This is the formula used to calculate schedule adherence:

Schedule adherence = (Actual hours worked ÷ scheduled hours) x 100

Low adherence can lead to understaffing and decreased productivity. Tracking this metric helps ensure staffing levels meet demand and holds employees accountable for their scheduled hours.

23. Labor cost as a percentage of revenue

This metric shows the percentage of revenue spent on labor costs, including salaries, benefits, and taxes.

The labor cost as a percentage of revenue is worked out with this formula:

Labor cost as a percentage of revenue = (Total labor costs ÷ total revenue) x 100

High labor costs as a percentage of revenue can signal inefficiencies and reduce profitability. Tracking this helps companies ensure labor costs are sustainable in relation to revenue growth.

24. Workforce diversity

This metric measures the representation of various demographic groups within the workforce. It takes into account factors like gender, sexual orientation, ethnicity, nationality, age group, and disability status.

Diverse workforces tend to be more innovative and better at problem-solving. Monitoring diversity ensures hiring and promotion practices are inclusive and that the company benefits from a wide range of perspectives.

“Workforce diversity should be understood beyond just demographic descriptions. Who is your workforce, what do they care about and what matters to them at work? The better we know the human beings in our workforce, the better we can anticipate their needs, leading to higher levels of productivity and performance.”

Dieter Veldsman, Chief Scientist (HR and OD) at AIHR

25. Workforce distribution

This metric measures the composition of a company’s workforce based on the percentage of employees in different employment categories, such as full-time, part-time, temporary, and contract workers.

It helps an organization understand its staffing structure and assess how its different employment arrangements contribute to overall productivity and operational efficiency.

The workforce distribution is determined by this formula:

Workforce distribution = (Number of employees in a specific category ÷ total number of employees) × 100

Understanding workforce distribution is crucial for strategic planning, resource allocation, and identifying potential staffing gaps. It can also influence decisions on employee benefits, training needs, and workforce flexibility, enabling companies to adapt to changing market conditions and improve overall employee satisfaction and retention.

To sum up

Relying on outdated or ad-hoc data can impede your company’s ability to respond swiftly and strategically. As such, you need real-time metrics to provide actionable insights and allow your organization to optimize resource allocation, monitor performance, and address issues before they escalate.

A more data-driven approach can not only close the gap between workforce needs and business objectives but also build a more agile, adaptable workforce. Ultimately, WFM metrics empower companies to navigate change, anticipate future demands, and create a more resilient, high-performing workplace.

FAQ

The post 25 Workforce Management Metrics You Should Track appeared first on AIHR.

For example, when considering the cost implications of employee turnover, SHRM found that hiring a new employee can cost three to four times the position’s salary. This makes it crucial to monitor both turnover risk (a KRI) and turnover rate (a KPI).

This article breaks down KRIs and KPIs and shows you how to apply them to strengthen your HR strategies.

Contents
What is a KRI?
The benefits of setting KRIs
What is a KPI?
The benefits of setting KPIs
KRIs vs. KPIs: The key differences
The purpose of KRIs in Human Resources
Examples of KRI and KPI metrics in HR
When to use KPIs and KRIs

What is a KRI?

Key Risk Indicators (KRIs) serve as an early warning system that alerts companies to potential threats before they escalate into costly issues. They are measurable metrics that help pinpoint and assess potential risks that can hamper a company’s ability to meet its objectives.

You can use KRIs to support business goals by identifying and addressing vulnerabilities that may jeopardize the company’s long-term stability and viability. Unlike KPIs, which measure performance outcomes, KRIs focus on determining and managing risks before they become significant issues.

KRIs are usually categorized as operational, financial, or people-related. In information security, for example, KRIs can monitor and quantify cyber risks to help companies be proactive and take swift action.

The benefits of setting KRIs

The positive impacts and benefits of setting KRIs include:

• Early risk detection: KRIs’ ability to detect risks early allows HR to recommend and implement changes or proactive measures.
• Compliance: KRIs mitigate non-compliance risks by monitoring adherence to legal and regulatory requirements.
• Informed and data-driven decision-making: KRIs provide critical data by quantifying risks and their potential impact. This helps HR make well-informed, data-driven decisions on business policies and practices.
• Risk management: KPIs support organizational performance and stability, impacting a company’s finances and reputation. 

What is a KPI?

Key Performance Indicators (KPIs) are quantifiable metrics that track progress toward specific business objectives. KPIs can help your organization set goals, monitor progress and achievements, and identify areas for improvement.

Unlike KRIs, which focus on determining and managing risks, KPIs measure performance outcomes based on predetermined indicators. KPIs can vary by business, project, department, or industry.

The benefits of setting KPIs

Incorporating KPIs into HR practices and processes offers several advantages, such as:

• Performance tracking: KPIs allow HR to track employee performance and organizational productivity, which can help you recommend changes and improvements.
• Strategic alignment: KPIs help align HR activities with long-term organizational strategy, objectives, and goals.
• Data-driven, informed decisions: KPIs provide insights that assist in making data-driven decisions for improving HR strategies.
• Forecasting and trend analysis: KPIs can also help track trends over time, aiding in strategic decision-making, planning, and adjustments.

KRIs vs. KPIs: The key differences

There are several contrasting differences between Key Risk Indicators and Key Performance Indicators. Below is an overarching summary:

The purpose of KRIs in Human Resources

Key Risk Indicators provide data to help in decision-making in areas such as promotions, internal training, policy changes, resource allocation, and risk mitigation solutions.

KRIs can also help ensure regulatory compliance for the organization and track and enhance the effectiveness of HR strategies. At the same time, they help align workforce management with business objectives, monitoring employee engagement, retention, and productivity.

How HR can use KRIs

As an HR professional, you can add value to your company by regularly using KRIs in business planning and risk mitigation activities, including:

• Risk assessment: Develop and recommend strategic plans to address identified risks. For example, if excessive absenteeism is detected, you can suggest launching wellness initiatives.
• Policy development: To be proactive and mitigate risks, you can recommend and lead the development or revision of the company’s policies and procedures based on its KRIs. 
• Management reporting: Communicate KRI data to senior management and other key players to ensure accountability and highlight areas needing attention or investment. Based on KRI data, you should also communicate what’s working well for the company.
• Trend analysis: Monitor changes over time to refine and develop well-informed HR strategies and policies.
• Effectiveness assessment: Evaluate current HR strategies, training initiatives, policies, and procedures so you can make necessary adjustments.
• Anticipating new risk factors: Identify risk that has not yet affected the company but has the potential to, then take proactive steps to mitigate them. This can include adjusting or adding roles to ensure all employees are prepared to handle new and potential risks.

Examples of KRI and KPI metrics in HR

Examples of HR KRI metrics

Some examples of KRIs you should track include:

1. Safety risks: Number of accidents, work-related injuries, or safety violations. An unsafe work environment harms employees and exposes the company to legal risk.
2. HR compliance risks: The company’s compliance with local, state, and federal employment laws and regulations. This is important as a high level of compliance gives employees peace of mind and protects business operations and reputation.
3. Diversity, Equity, Inclusion, and Belonging (DEIB) risk: The company’s DEIB initiatives (or lack thereof), which affect representation in the areas of nationality, race, gender, sex, ethnicity, sexual orientation, age, and educational background (among others).
4. Exit interview data: The rate at which employees leave a company and whether these departures are more often voluntary or involuntary. A high volume of resignations can signal issues with management and culture, while many terminations may signal poor recruiting practices (i.e., not hiring the best fit for open positions).
5. Low workforce morale risk: Pay attention to metrics like employee feedback, turnover intentions, and overall morale indicators. A decline in these areas can suggest a risk of widespread dissatisfaction, which can impact performance and retention.
6. Succession planning risk: Track the readiness of your succession plan, particularly for critical roles. If key positions don’t have a clear successor or if the identified successors are not adequately prepared, this poses a risk to organizational stability.

HR tip

Combine data from both KRIs and KPIs to get a broader understanding of HR performance and risks. You can maintain and share this data via an HR dashboard.

Examples of HR KPI metrics

When it comes to KPIs, here are some important metrics to track:

• Time to hire: The amount of time your organization takes to fill job vacancies, from posting a job listing to having a new hire sign an employment contract. Excessively long times may indicate an overly complicated recruitment process that discourages candidates from joining the company.
• Employee turnover rate: The rate at which employees leave a company within a specified timeframe. High turnover may point to organizational shortcomings and recurring problems within the company culture.
• Cost of turnover per employee: The financial costs incurred when an employee leaves and needs to be replaced. High turnover can be a substantial drain on a company’s resources, including time, training, finances, and productivity.
• Absenteeism rates: The amount of time or number of days employees are absent from work. A high absenteeism rate could indicate issues with employee motivation, morale, engagement, workplace dynamics, or company culture
• Employee engagement: High employee engagement is tied to increased productivity and engagement, higher morale, job satisfaction, and retention rates. 
• Internal promotion rate: Assess the efficiency and timeliness of internal promotional opportunities.
• Employe Net Promoter Score (eNPS): How many employees would recommend the organization to friends/family as a good place to work.
• Training and development programs: The effectiveness, impact, scope, and reach of the company’s training and development initiatives.

When to use KPIs and KRIs

KRIs and KPIs should be used at different stages of your strategic planning and operational processes, depending on the specific goals you are trying to achieve – but you can also combine using both types of indicators to get a more comprehensive view. Here is a checklist to help you decide when to use each:

When to Use KRIs (Key Risk Indicators):

Risk assessment and mitigation:

☐ Identifying potential risks during the planning of new projects or organizational changes.
☐ Monitoring ongoing risks (e.g., compliance, turnover, safety) to prevent issues from escalating.

Strategic planning:

☐ Assessing risks that could impact long-term HR strategies.
☐ Tracking risks related to expansion, talent shortages, or workforce demographics.

Performance monitoring:

☐ Regularly reviewing KRIs to identify emerging risks that may affect business objectives.
☐ Using KRIs to predict and address potential declines in employee engagement or morale.

Crisis management:

☐ Focusing on critical risks during crises (e.g., economic downturns, public relations issues).
☐ Allocating resources to mitigate the most pressing risks identified by KRIs.

When to Use KPIs (Key Performance Indicators):

Setting and measuring goals:

☐ Defining HR SMART goals (e.g., reducing turnover, improving time-to-fill).
☐ Tracking progress toward these goals with relevant KPIs.

Operational management:

☐ Monitoring the effectiveness of HR functions (e.g., recruitment, training, development).
☐ Ensuring efficiency in processes like hiring and onboarding by tracking relevant KPIs.

Continuous improvement:

☐ Identifying areas for improvement (e.g., low engagement scores) using KPIs.
☐ Implementing initiatives and tracking their impact over time with KPIs.

Reporting to leadership:

☐ Providing clear, quantifiable data to senior leadership using KPIs.
☐ Demonstrating the impact of HR initiatives on organizational success through KPI tracking.

HR tip

Communicate results and share insights from measuring and tracking KPIs and KRIs with key stakeholders. This will help you cultivate a collaborative approach to performance improvement and risk management.

Integrating KRIs and KPIs

☐ Using KPIs to measure performance while leveraging KRIs to anticipate and manage risks.
☐ Using KRIs for proactive risk identification and management.
☐ Applying KPIs for reactive performance measurement and strategy adjustment.

To sum up

Understanding and effectively using both KPIs and KRIs is essential for HR to help drive organizational success. To establish the necessary metrics, you must understand the business and align both internal and external factors with organizational objectives and goals. You can further support the business by teaching stakeholders the differences between KRIs vs. KPIs. 

While KPIs can help you understand how well the company is doing in relation to its strategic plans, KRIs can help you pinpoint and prepare for potential risks to minimize the chances of unfavorable outcomes.

Integrating both into your organization’s strategy can improve decision-making, ensure compliance, and align HR activities with broader business goals. But remember that while data is integral, inaction can present more challenges. You can add value to your organization by planning and proposing initiatives to improve its business outcomes.

The post KRI vs. KPI: Key Differences To Know (Your 101 Guide) appeared first on AIHR.

A recent study by Prosci found that 88% of businesses with excellent change management programs met or exceeded their objectives, compared to only 13% of those with poor programs. This stark contrast underscores the impact of well-executed change management.

HR can add value by developing and implementing robust change management strategies. Using targeted metrics, you can measure the effectiveness of these initiatives and better align them to organizational goals. In doing so, HR not only supports successful change initiatives but also drives overall business success and adaptability.

Contents
What are change management metrics?
15 change management metrics to track
– Achievement metrics
– Completion metrics
– Acceptability metrics
Best practices for tracking change management metrics
Change management metrics dashboard tools and resources

What are change management metrics?

Change management involves developing and implementing a strategic plan to prepare employees for organizational shifts and changes. It also gives employees ongoing support to ensure successful adaptation. While change management differs from company to company, effective change management strategies always aim to minimize resistance and optimize adoption. 

These metrics also help track progress, identify areas for improvement, and ultimately, better align strategies with organizational goals and employee wellbeing. HR then communicates key metrics and their results to leadership and other key stakeholders.

Change management metrics measure the success of change efforts and facilitate understanding of the changes’ broader implications. HR can use outcomes and acceptance metrics to ensure change initiatives meet performance and compliance standards and are accepted by employees.

HR teams can also keep a close eye on how the company’s programs are functioning so they can recommend any necessary adjustments.

HR tip 

Conduct pilot tests for your change management initiatives. Involve small groups of employees before full-scale implementation. This helps you to make quick adjustments based on employee feedback, minimizing disruption.

15 change management metrics to track

Below are three main categories of change management metrics: achievement, completion, and acceptability. Each category contains useful metrics for measuring the success of your company’s change initiatives, the degree of their completion, and their acceptance.

Achievement metrics

1. Process compliance rating

This metric helps ensure your company’s implemented changes comply with legal and regulatory frameworks. Compliance requirements can vary by company, industry, and location. 

Here’s how to calculate this metric:

Process compliance rating (%) = (Number of compliant processes ÷ total number of processes) × 100

2. Employee engagement and morale

Changes in the workforce, both big and small, will inevitably affect employee engagement and morale. Track these metrics before, during, and after the company makes changes; this will provide valuable insights into how well the organization manages the impact of change on its employees.

3. Employee productivity and performance

Measuring changes in productivity and performance helps evaluate the impact of change initiatives on employees’ output. It also provides a tangible measure of whether the changes enhance, hinder, or have no impact on productivity. 

Here’s how to calculate the total employee productivity rate (EPR):

Total EPR = Total hours worked weekly ÷ total number of employees

Apply this formula to the period (e.g., one month) before the change initiatives’ implementation and the period after their completion to pinpoint any decline in employee productivity. This allows you to address and resolve the matter as quickly and efficiently as possible.

4. Number of non-compliance incidents

It’s essential to be proactive in identifying any red flags or instances of non-compliance early. This allows HR to address gaps and improve compliance processes quickly.

This helps prevent minor non-compliance from escalating into significant problems that could undermine the change initiative, disrupt operations, and negatively impact employee morale and productivity.

5. Cost savings and ROI

Evaluating change initiatives’ impact on the company’s bottom line helps justify investments and demonstrate related measurable benefits.

This could include sales figures, customer satisfaction scores, and other relevant business metrics. Preventing unnecessary expenditures helps streamline the available budget. 

Here’s how to calculate ROI:

ROI (%) = (Net benefit* ÷ cost of investment) × 100

*Net benefit = Total benefits − total costs

Completion metrics

6. Employee training completion rate

This metric measures the percentage of employees who have completed the required training associated with change initiatives. It indicates the workforce’s readiness to adopt new processes or systems. It can also assess the information retained post-training and identify any necessary revisions. 

Here’s how to calculate employee training completion rate:

Employee training completion rate (%) = (Number of employees who completed training ÷ total number of employees enrolled) × 100

7. Adoption rate

Tracking the percentage of employees actively using new systems or processes introduced through change initiatives provides insights into employee acceptance of these changes. It also measures how effectively employees apply their trained skills in real-world scenarios. 

Here’s how to calculate the adoption rate:

Adoption rate (%) = (Number of employees using the new process/tool ÷ total number of employees) × 100

8. Project milestones achievement

Evaluating the extent to which the company has achieved the key milestones of its change initiatives helps determine project management effectiveness and overall progress.

It also allows you to revisit these milestones to assess if they are unrealistic and need to be altered or eliminated.

9. Customer and stakeholder satisfaction

Changes can impact external customers and stakeholders. Monitor engagement by tracking their attendance and participation in key meetings or focus groups during and after the changes’ implementation. You can also use employee satisfaction and feedback surveys for this purpose.

One widely used method to determine customer satisfaction is the CSAT (customer satisfaction) score. Companies usually obtain this by asking customers to rate their satisfaction with the products/services on a scale of one to five (five being most satisfied). 

Here’s how to calculate your company’s CSAT score:

CSAT score (%) = (Sum of all scores ÷ total number of responses) × 100

HR tip 

Any satisfaction and feedback surveys you use to gather information should allow respondents to remain anonymous. This can help increase survey participation, which is critical for effective change management.

Acceptability metrics

10. Organizational alignment

Assessing how well change initiatives align with organizational objectives ensures the implementation of these initiatives doesn’t compromise strategic goals. It also helps the company and its workforce avoid spending extra time and effort fixing major discrepancies between change initiatives and organizational goals.

11. Change readiness

Measuring the organization’s readiness for change allows it to adjust strategies to improve its change readiness. SHRM recommends first determining the key roles for successful change (such as positions that will lead new business units and organizational structure). Next, assess their competency in the context of their individual positions.

Finally. use this formula to calculate your company’s change readiness:

Change readiness = (Vacant positions ÷ total positions) × (employees with desired competency rating ÷ total assessed) × 100

12. Speed of change

Monitoring the speed of change implementation and organizational adaptation provides insights into change management efficiency and agility. 

You can calculate the speed of change using the following simple formula:

Speed of change (%) = (Total change implementation time ÷ total planned implementation time​) ×100

13. Leadership effectiveness

HR must secure buy-in for change initiatives and remind leadership to lead by example, especially during change and transition.

Evaluating leadership’s role in guiding change processes and fostering employee adoption is critical to successful change implementation.

14. Employee feedback and satisfaction

Gather feedback from employees via a survey on their level of satisfaction with the change process, and address any concerns in real time. This helps maintain or increase morale and minimize resistance.

You can use the following formula to calculate your company’s employee satisfaction index (ESI):

ESI (%) = (Total number of employees who gave positive survey responses ÷ total number of employees who took the survey) × 100

15. Training effectiveness

Ensure employees have the skills and knowledge needed to reduce errors. You can use pre-and post-training assessments to score their skills and knowledge. You can also analyze the training’s broader impact on business outcomes, such as efficiency or financial performance, to ensure alignment with organizational goals.

Here’s how to calculate training effectiveness:

Training effectiveness (%) = [(Post-training score − pre-training score) ÷ pre-training score] × 100

Best practices for tracking change management metrics

Gartner found that the percentage of employees willing to support organizational change fell from 74% to 38% within a five-year period. This shows the importance of evaluating what’s working and what isn’t. Also, it’s essential to keep employees and stakeholders informed, regularly get their feedback, and act on it. This builds trust across the organization and boosts overall morale.

It’s important to understand the importance of analyzing change management metrics. This allows you to provide management with sound recommendations to improve the company’s change management strategy. Here are some best practices for you to consider when tracking change management metrics:

• Use agile change management practices: Encourage iterative and simple approaches that build flexibility and responsiveness to feedback and changing circumstances.
• Employ employee feedback tools: Engage employees at all levels by requesting their input and feedback so you can understand their concerns, opinions, and suggestions for change management initiatives. Employee surveys are an excellent tool for this purpose.
• Use software analytics: Use software analytics tools to obtain specific data and insights into the effectiveness and impact of the organization’s change initiatives. This promotes and supports data-driven decision-making.
• Integrate metrics into the business: Incorporate change management metrics into business and workforce evaluations, such as employee performance reviews, business plans, and industry benchmarking. This can help align business goals with organizational change objectives.
• Closely monitor and revise the metrics: Use the data you collect and analyze to help identify, address, communicate, and resolve any issues you notice. These metrics will also reveal what’s working well, so the company can continue to expand upon those initiatives.

Change management metrics dashboard tools and resources

The first step to creating a change management metrics dashboard is defining the company’s objectives and metrics. HR should identify key stakeholders, roles, and responsibilities involved in the change process. 

You can ask the following questions to help you decide on the right change management metrics to track:

1. What are the goals and benefits of the company’s change strategy? 
2. How will we measure its success and impact? 
3. Who needs access to the change management metrics dashboard?
4. How can the SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) framework be used to define the change objectives and metrics clearly and realistically?
5. How can HR better align the company’s change objectives and metrics with its organizational strategy, vision, and values?

A change management metrics dashboard provides real-time access to key metrics. It is a centralized tool for monitoring, analyzing, and communicating the progress and impact of change initiatives. The dashboard will help you make informed, data-driven decisions and proactively manage change processes.

Your IT department can either build change management metrics dashboards in-house or hire an external vendor. In the case of an in-house dashboard, work with IT on the technical aspects of dashboard development, including reporting capability. 

HR tip 

Schedule demos of your change management metrics dashboard options to determine which one best suits your organization. Ask employees from various departments to participate in the demo process so you can get different perspectives.

Here are some external tools you (or your IT department) can consider using when building your change management metrics dashboard:

HR tip

Measuring, interpreting and presenting HR data are essential skills for HR professionals. Upskilling yourself on these skills will help you present valuable, data-driven insights to leaders. AIHR offers an HR Metrics & Dashboarding Certificate Program to help you upskill yourself and add value to your organization.

Final thoughts

As an HR professional, you benefit from understanding and tracking change management metrics. Tracking and analyzing these metrics will give you insights into the success and impact of your organization’s change initiatives.

You can also identify areas where employees might be struggling and offer targeted support, ensuring the workforce can welcome and sustain the company’s change efforts.  Additionally, you can use metrics like cost savings and ROI to demonstrate change initiatives’ tangible benefits to leadership, justifying investments in training and development programs.

Being adept at these metrics allows you to proactively address issues like low employee morale or adoption rates before they escalate. This not only leads to a smooth transition but also enhances employee satisfaction and productivity and ensures change initiatives align with organizational goals.

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