HR Key Performance IndicatorsKPI stands for Key Performance Indicators is a metric which is used to gauge the performance of a particular process, activity or individuals in the company to track the performance of the company.

HR key performance indicators are used as a benchmark for achieving certain company goals. In short, HR KPI’s are used as a reference for measuring both the employees and company performance.

The HR KPI’s you define for measuring the performance of your company should be concrete, measurable, reachable and relevant which means they should be solid , serve a specific purpose, can be measured, should be realistic which will determine your success and which will also contribute the overall success of your company.

1. Employee Productivity

Different companies measure employee productivity differently. As a general rule, employee shows up in the office from 9 to 6 and that should not be the KPI to measure his or her success.

What matters is what he or she has achieved while working in the office or from his or her home throughout the whole day and this is the most important KPI to measure the employee product and requires a careful consideration.

2. Retention Rate

This is one of the most important KPI which is used to gauge the success of a company. This KPI clearly states the job stability of the company.

The higher the retention rate, the higher will be the cost employer has to spend to hire and recruit new employees.

While on the other hand the lower the retention rate the less would be the cost spends by the employer to hire, recruit and train new employees. So the the loss of talent cost many bucks to the company.

3. Training Efficiency

Measuring training efficiency is also an important KPI to gauge the company performance. To measure the effectiveness of training is not a piece of cake. You have to clearly define some gorals and determine whether the employees have reached those goals.

Once the training is over and employees reaches the target gorals it means that the training offered was effective and will definitely help them to perform better in their work within the company.

4. Absence Rate

Measuring an absence rate is another very important KPI for HR. This KPI basically shows the absences of employees due to the sick leaves, unscheduled and unexpected leaves.

Normal absence rate is 1 to 2%. The Higher absence rate deteriorates work level in the company which results in increased stress level. Absence rate varies month by month.

The absence rate costs can be measured quite easily based upon the value of the hour worked.

5. Accidents Rate

Measuring accidents in the workplace is yet another important KPI to note down which will help you prevent from the future issues.

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