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    Many successful businesses all around the world have started incorporating HR metrics as an important part of their business strategy. This explains why strategic HR is conquering this field of business. According to a survey of businesses worldwide, almost one-third of executive supervisors wish to see HR reports more often. This shows that many businesses worldwide are inclined towards HR metrics. Many businesses believe that HR metrics are extremely important for an organization.


    The demand for HR metrics in businesses has been increasing and this is why the HR teams need to step up and improve their data analysis game.


    In case you are new to all this and you don’t know where to start, this guide will help you in understanding the basics of HR metrics and which HR metrics you should be using to bring in a real change in your organization.

    What Are HR Metrics?

    HR metrics stand for human resources metrics. These are key figures which can assist a business in closely monitoring its human capital. It also measures and tells if the human resources initiatives being used are effective or not. Data such as turnover, cost-per-hire, benefits participation rate, etc need to be evaluated. Measuring all this information can help organizations formulate their strategy.


    KPIs in HR metrics are a way to track the performance of your business. They’re used by many different companies and organizations who wish to achieve excellence in this field.

    KPIs in HR metrics are based on a few key elements:

    • Number of customers served (the more customers you have, the higher your HR)
    • Number of orders processed (the more orders processed, the higher your HR)
    • Profit margin (the higher your profit margin, the higher your HR)

    Why are HR Metrics important?

    Measuring KPIs HR and its effect on an organization is very important. Many executives and professionals in successful businesses prefer having a look at detailed HR KPIs and metrics reports and also favor hearing more from their HR teams.


    HR metrics also provide detailed insights which allow HR leaders to make better decisions. This means that HR metrics are not only nice to have in an organization but it is a must for them.

    HR Metrics Impact Your Strategy

    Measuring something can help you make improvements to them. Over two-thirds of the workers believe that it is very important to measure the effect of HR initiatives on an organization. Many of these workers believe that HR reports can influence their organization’s strategy to varying degrees.


    Therefore, if your company wishes to make wise, well-informed, strategic choices in the future, your organization needs to use HR metrics.

    Executives Want More HR Reports

    A few executive teams have very high expectations. They expect their HR teams to deliver all the HR-related information. According to a survey, about one-third of non-HR executives said they do not get HR reports since their HR team doesn’t report that often. In addition to that, another 16 percent of executives said that they had absolutely no idea about their HR teams.


    51% of the respondents said that their HR teams report very frequently but their improvement might be needed – this is a very good opportunity for HR.


    HR metrics are important because they provide organizations with objective, quantifiable data on the performance of their HR programs and initiatives. This data can be used to identify areas of improvement, evaluate the effectiveness of HR strategies, and make data-driven decisions. Additionally, by tracking HR metrics over time, organizations can identify trends and patterns that can inform future HR decisions.


    HR metrics can also help organizations:

    • Measure the return on investment (ROI) of HR initiatives and programs, which can help justify budget and resource allocation.
    • Identify areas of inefficiency and waste, and take corrective action to improve performance.
    • Benchmark performance against industry standards, and track progress over time.
    • Communicate the value of HR to other departments and senior management, by showing how HR initiatives and programs contribute to overall business performance.
    • Improve employee engagement, retention, and satisfaction by identifying and addressing issues that are impacting employee morale.
    • Improve the organizational culture and employer branding


    In short, HR metrics are an essential tool for organizations to evaluate the performance and effectiveness of their HR programs and initiatives and to make data-driven decisions that drive business results.

    What Are the Most Important HR KPI 2023?

    Many important things need to be measured in HR including things from headcount to benefits participation need to be measured. But if you are wondering what type of information can help you get insights into what may be needed by your organization to grow, then we have compiled a list of the best HR KPIs. These HR KPIs examples metrics will help you monitor your company and provide you with the data essential for you to know how you can make your company succeed.


    • Headcount: It is the total number of workers in your company or within a specific department in your organization you may be tracking.
    • Demographics: It is the characteristics of your workforce including age, education, gender, and length of service.
    • Time to Hire: It is the average number of days between when a job was first posted and when a candidate accepts your job offer.
    • Cost per Hire: Cost per Hire is the average cost of hiring a new employee in the organization. You can develop and generate this number by adding up both internal and external hiring costs. Then you need to divide that total by the number of workers you have hired in a given period.
    • Time to Productivity: The time it takes for someone who has been hired to become adapted at your company and then starts performing at full productivity.

    Engagement & Retention

    • Employee Satisfaction: This HR metric will compare the number of workers in your company who are satisfied and would recommend your company as a good place to work with workers who wouldn’t. This HR metric indicates overall employee satisfaction.
    • Total Turnover Rate: It is the number of workers who have stopped working in your organization in a particular period divided by the average number of total employees.
    • Voluntary Turnover Rate: It is the number of workers who have left your organization voluntarily

    Time Tracking

    • Absence Rate: It is the average number of days for which the employees have been absent from work in a given period.
    • Overtime Hours: It is the number of hours worked by employees in a given period.

    How to Use HR Metrics

    Now that we have mentioned some of the HR metrics used in an organization, let’s find out how to use KPIs for HR Business.


    Using KPIs for HR department effectively involves several steps:

    • The first step in using the HR metrics for optimized performance is to select the right metrics. Choose metrics that are according to your goals and which will provide insights into your HR programs.
    • Collect all the data on the metrics you have identified. You can conduct surveys, and interviews or can use other data collection methods.
    • Analyze the collected data accordingly.
    • Share the findings with everyone on your team to help them understand where they stand and whether will they be able to achieve their goals or not.
    • Use the insights to make data-driven wise decisions.
    • Keep a track of the overall performance.


    It is important to know that when you have selected an HR metric you need to use it according to the other forms of data. This way you can get qualitative feedback, and a comprehensive understanding of the effectiveness of HR programs and initiatives. Also, it’s essential to assure that you have a reasonable data set to get accurate and steadfast results.

    Best Practices For Using HR Metrics to Drive Business Results

    There are several best practices for using HR KPIs to track and drive business results:

    • Align metrics with business objectives you wish to achieve: Never choose HR metrics that are not according to your goals. Always go for options that optimize your goals. This way these metrics will be able to provide valuable insights into your projects and will give you detailed information about your performance and progress.
    • Use a combination of such indicators which track your performance in the past and compare it with the present performance to help you analyze things in a better way
    • Whatever findings you get, you must communicate the results with the key stakeholders and use that information in the future to make wise decisions and take better actions.
    • Ensure that you regularly track and keep an eye on the metrics to identify the trends and make adjustments accordingly.
    • Use multiple data sources to gain a thorough understanding of the significance of HR programs and initiatives.
    • Provide training to HR staff and managers to make them understand the basics and help them make better decisions.


    How can Microsoft Dynamics 365 help?

    Microsoft Dynamics 365 is a suite of business applications that have been helping many organizations all around the world. It has helped companies track and analyze HR metrics for optimized performance. There are many services in dynamics 365 that have proved themselves to be useful in tracking HR KPIs dashboard like

    All these Dynamics 365 applications and services can help you to organize your team and track HR metrics if you wish to keep an eye on the performance of your team. This way you can know if you are achieving your goals or not.


    What are HR metrics?

    HR metrics are a way to track the health of your business. They’re a way to see how your company is doing, and they can help you make improvements.

    HR metrics include things like:

    -Sales volume

    -Revenue growth

    -Customer satisfaction (or lack thereof)


    What are the types of HR analytics?

    There are many types of HR analytics including:

    • Big data analytics
    • Descriptive analytics
    • Diagnostic analytics
    • Predictive analytics
    • Text analytics
    • Social media analytics
    • Prescriptive analytics