One of the most important tasks of the HR Department is to analyze the performance of the people inside the company. To do so, there are a variety of KPIs (Key Performance Indicators) that can be used. Below, we will feature five of the most common ones.

What are KPIs used for?

When we discuss HR KPIs, we look at the elements that can indicate if the team is performing well. However, in the end, the main goal is to understand if the company’s global performance is how it should be. To do so, it will track individuals activity through concrete study points. In fact, for results that make sense, these performance indicators have to be measurable. If they aren’t relevant, then the results will not clearly show if both employees and the company are performing as they should. If they are, success will be just around the corner. Here are five important KPIs, for most businesses.

performance indicators
Smart goals photo created by Waewkidja –

Employees Productivity

This is clearly the most important point of all. If employees are not producing work efficiently, then the company will never reach its goals. There are various ways to gauge the productivity of employees, according to the industry that the company is a part of. However, it can not depend on people arriving on time at work and leaving on schedule. There has to be an in-depth analyze of the work being produced, while at the office or when they work from home.

Employees Retention

Managers in companies are well aware of the importance of employees retention. If the human element of the firm is not stable, the results will show that instability as well. A great turnover will never enable the company to become stronger and to gain ground on its competitors, which is one the most important objectives of a company. The process needs to show accumulation of experience, which translates into a more adequate team, that can move on to new and bigger development projects. 

Employees Training

This is a more difficult task, when it comes to gauging the efficiency of training for employees. The HR Department has to define the goals, before employees start the training, so that they can evaluate for the first time through a test, right after the sessions are completed, as well as later on, through a grid where they can testify that the training helped on specific points. If the training works, increase of productivity should also follow.


If the company is missing a large part of its employees, through absenteeism, it cannot work properly. A regular percentage would be between one and two. Higher than this means there is an issue that needs to be solved. Absenteeism is very costly for a firm, and needs to be dealt with, right away.

Accidents On Site

This KPI is more specific to companies that have a warehouse, or employees involved in physical work. To them, that specific performance indicator is of outmost importance. The risk of losing employees to accident on site should be reduced to its minimal level, and HR needs to monitor the situation at all time.

Dismissal Rate

If your turnover is high, then the problem just might be that you are hiring the wrong persons. How do you know? If you fire more people than see them leave by themselves (or they stay through their whole career) then you are probably not conducting your hiring interviews the right way. Or you are simply not looking for the right characteristics in the individuals that you hire to work inside your company. 

Gender Diversity

Not all companies choose to take a closer look at their gender diversity. Some believe that it is best to hire the right person for a given job, without ever looking at gender. However, this could become a problem in a company, if the issue is not tackled at some point. To encourage diversity means to open up to new horizons. Too many men or women can provide heavy tendencies inside a company, that could end up being irreversible. In a society such as ours, this is simply unacceptable. Of course, the same needs to be done in terms of ethnicity, whenever possible. The more diverse the company will be, the more it will adapt to today’s challenges.