12 Absolute KPIs for HR Manager with Calculation Process
By: Mahadi Hasan
Tags: Management, Performance Appraisal, Management And Leadership

KPIs for HR Manager are measurable values that helps in tracking pre-defined organizational goals of human resources management. KPIs help HR department to optimize their recruitment processes, employee engagement, turnover rate, cost of training etc. Top management’s expectations for HR professionals are continuously increasing. As a result, top 12 KPIs for HR Manager are as below that every HR manager should use for getting optimum output.

Absenteeism Rate:

It is a highly important employee engagement KPI for HR Manager and usually calculated by dividing the number of working days in which the employee was absent by their total number of working days. It directly illustrates employee’s motivation and engagement in his work. This information helps in predicting absences and detecting operational problems. Month wise comparison of absenteeism rate should place in HR KPI dashboard; it will help HR Manager to achieve departmental goal.

Calculation Formula:

Employee Absenteeism Rate = (total number of absent day / total number of working day) x 100

Average Stay Period:

This is one of the important KPIs for HR Manager which tracks the average period an employee stays with the company. It helps to measure employee satisfaction and employee engagement with the company. Employee satisfaction is measured through employee attitude and engagement surveys. Dissatisfaction is an important cause for which employee turnover occur. If staying period found longer then it will be better for your company’s return on hiring and training investments process. High employee engagement predicts higher productivity and lower turnover.

Calculation Formula:

Average Stay Period = Total number of days that X employees stayed in the company / total number of employees in question.

Cost Per Hire:

This is a pretty straight forward KPIs for HR Manager that measures total invested amount of resources for each new employee hired. During calculation, all costs of recruitment (manual advertisement cost, time cost of recruiters, job portal’s fees etc.) will be included. This cost is related with company’s overall budget, so company should strictly follow and maintain a lead time for each recruitment.

Calculation Formula:

Cost Per Hire= (total internal recruiting costs + external recruiting costs) / (total # of hires in a given time frame)

Turnover Rate:

The turnover rate is one of the major & critical KPIs for HR Manager that focuses on lost talent. Company should try to keep the talent turnover rate as low as possible for the junior staff, as they will be most valuable resource in the future. Turnover rate analysis report helps HR department to identify how many employees leave organization in a certain period and need replacement.

Calculation Formula:

To start your employee turnover calculation, follow bellow formula.

Monthly Turnover Rate = (Total number of leavers in a month / average number of employees in a month) x 100.

To find out average number of employees in a month, divide the summary of total employee at the beginning of the month and at the end of the month with 2.

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