10 Vital HR-metrics

Utilize these 7 tactics to align operations with HR leading the charge
10 vital HR metrics to track for your business

October 4, 2023
Knowing the value of data analytics for HR is one thing, applying them is another. Now,
let’s look at the 10 top HR Metrics you should be looking at, according to Visier, a people
analytics software provider.
Learn how strategic planning becomes more potent when HR aligns human capital
strategies with business goals and then collaborates with operations and finance.
Discover how shared performance metrics, facilitated by HR's performance appraisal
systems, empower cross-functional success.
HR Best Practices: Align Your Efforts and Solve the Talent Shortage
Webinar: October 20 | Available Live or On-Demand
Register Now
1. Headcount
The total number of people who are doing work for the company at any given time,
including all permanent, temporary, contingent and gig workers. Track each of those
worker categories separately, but also be sure to track the salary band headcount, which
determines the upper and lower salary limit for workers within a type of role.
2. Turnover
The number of employees who leave a company over a certain period of time. Track
predicted resignations, resignation trends, estimated replacement costs and resignation
drivers, often measured through exit surveys.
3. Diversity
The range of differences within a company or workforce, particularly related to the
categories of gender, race, ethnicity, age and other factors. Tracking gender can include
male, female, nonbinary or other more detailed designations. Location details impact
diversity scores because some locations will have different ethnic makeups than others; a
person who is a minority in one location may be in the majority in another.
4. Compensation
Compensation is the monetary benefit provided by employers to attract and retain
qualified workers. Compensation can include salary, bonuses, health insurance benefits,
paid time off, retirement plans, tuition reimbursement programs and more. In addition to
salary, there are some additional data points to track. Compa-ratio divides an individual’s
pay rate by the midpoint of a predetermined salary range. Track how close a person’s
salary is to the midpoint.
Also track the range minimum, midpoint and maximum salaries. Related to salary band or
grade, these give an estimation of whether the employee is overpaid or underpaid
compared to others in similar positions. Range penetration compares the employee’s
salary to the total pay range for their position or similar positions within other companies.
Finally, grade or band is the minimum and maximum salary range offered for an
employee within a position.
5. Total cost of workforce

This measures the full cost of people who contribute work to the organization, including
all the labor costs and the workforce overhead costs, and all the costs that roll up into
those two categories, such as employer taxes, facilities and other overhead costs.
Take time to focus on reducing the turnover of key employees and improving
productivity, by aligning HR's efforts with other key departments. Join us to reveal the
synergies that emerge when operations, finance, and HR collaborate as a team.
Positive outcomes include increasing efficiencies, more transparent communication,

heightened employee engagement, optimal resource utilization, accelerated
innovation, and increased profitability.
Learn the story of a simple change in alignment that saved a company
6. Spans and layers

These are used to assess the width and depth of an organization. Span measures the
number of direct reports for each manager. Layer measures the number of supervisory
levels. Items to track within this metric are diverse and include types of work,
standardization of responsibilities, productivity, performance, contingent labor and
interdependency. The latter measures how members of different teams and different job
types work together.
7. Employee engagement
This is a concept related to the extent to which employees are positively connected with
their employers, their colleagues and the work that they do. The metric shows
employees’ level of connection and involvement with the organization and tells how they
feel about the company.
Metrics to track include voluntary turnover, absenteeism, employee performance and

Glassdoor reviews. Another is the Net Promoter Score, a numerical value on a scale of 1-
10 measuring employee sentiment towards their employer.
8. Talent acquisition
This is the process companies use to find, hire and onboard employees. It’s often also
the name of the department that fulfills this function. Recruitment and talent acquisition
are often used interchangeably, but recruitment is just one part of talent acquisition.
Metrics to keep track of include revenue per employee, quality of hire (improvement in
performance), performance turnover in key jobs, dollars of revenue lost due to position
vacancies, new hire failure rate (number who fail to make it to the 90-day mark),
applications per role and diversity hires.
9. Learning and development

Learning and development metrics track the career progression of individuals, as well as
training of employees, and the impacts of training on the business within an organization.
Metrics to know include what skills will be needed in the future, trajectory of the current
learning path (whether the current pipeline is sufficient to meet the skills required in the
future, internal hires/promotions (how many employees are progressing to hire roles
within the company) and baseline of skills present in the organization.
10. Workforce planning

This refers to figuring out how many and what kind of workers your organization needs
during a given period to support growth and ensure profitability. Calculating this number
involves determining the number of staff members needed for each department.
Metrics to know include absenteeism, attrition and turnover rates, time to proficiency for
new hires, tenure, seniority, experience levels and skills coverage.
Lead the charge to synchronize HR, finance, and operations to

improve processes and reduce turnover
In this 75-minute interactive online training, you will learn how to:
 Deepen interdepartmental insight: Gain a firm grasp of how operations,

finance, and HR should collaborate for strategic planning, performance, talent
management, and more.
 Apply practical alignment strategies: Acquire actionable methods to
harmonize goals, enhance communication, and optimize resource allocation
across departments.
 Understand exactly which key metric predicts success or failure:
Implement insights to make informed decisions, increase efficiency, and
enhance HR's role in driving sustainability.
Register Now

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Utilize these 7 tactics to align operations with HR leading the charge

10 vital HR metrics to track for your business

5. Total cost of workforce

Positive outcomes include increasing efficiencies, more transparent communication,

Learn the story of a simple change in alignment that saved a company

6. Spans and layers

Metrics to track include voluntary turnover, absenteeism, employee performance and

9. Learning and development

10. Workforce planning

Lead the charge to synchronize HR, finance, and operations to

 Deepen interdepartmental insight: Gain a firm grasp of how operations,

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