HR Metrics: Measuring Organizational Performance (2024)

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Most of the enterprises, especially corporate enterprises, start from HR Metrics in the formation of a general business strategy. Managers, in general, request many reports from the human resources team involved in human resources. With these reports, both the human resources team and the managers contribute to the company’s success by conducting data analysis.

What are human resources metrics?

Human resources metrics serve to track the human resources of enterprises and determine the level of effectiveness by measuring the actions taken. Thus, businesses can have the right forecasts and take the necessary action. It is precisely at this point that professional HR metrics have a very important place.

Important human resources metrics

There are issues that every business needs to analyze. Using these human resources metrics, professionals can measure the difference between the point at which the company is located and the goals in the long run. So, what are the most useful HR metrics for human resources professionals? Let’s Examine:

  • Recruitment metrics
  • Participation and retention metrics
  • Time tracking metrics
  • Metrics related to employee value and performance
  • Metrics related to training and development
  • Metrics about HR services and software

What are the Metrics that should be measured in Human Resources?

After understanding the important role of human resources in the success of a company, it’s time to figure out which data will give your organization the information it needs to grow and succeed. HR metrics measure the function of the human resources department, its effectiveness and the effectiveness of employees.

  • Overall Labor Force Efficiency

The purpose of this metric is to determine how much income the costs of employees in your company earn you. This can be calculated by tracking the money spent on people’s costs for every profit made. What is meant by employee costs is the expenditures made for motivation and training and the return of these expenditures to the company. In addition, the human resources department also takes into account the error rate and, as a result, the effectiveness of company strategies on behalf of employees is measured. 

  • Employee Obligations

Measuring liabilities is important because it balances the efficiency of the company. Focusing only on productivity can cause employees to overwork and eventually lose motivation and fail. To calculate this, the percentage of employees who report that they are looking forward to coming to work, the percentage of people who think they have been given the tools or resources to do their job well, and the percentage of employees who think their managers have good management tendencies can be calculated.

  • Recruitment Metrics

The responsibilities of human resources when it comes to hiring are huge and important because these decisions directly affect the future of the company. When hiring a new employee to the company, factors such as how long the position has been vacant for, the manager’s satisfaction with new hires compared to last year’s satisfaction scores, and the total monetary impact of a bad hiring for an important position should be taken into account.

  • Manager Satisfaction

When a manager is asked to provide satisfaction feedback, his answers may depend on his personal relationships with employees. Attention should be paid when collecting data for more objective feedback about the employee. Human resources can determine manager satisfaction by giving managers a survey that analyzes productivity and performance.


  • Employee Retention

Hiring a new employee to the company and losing your current employee is a much more costly process than expected. For this reason, human resources and managers need to determine the right strategies to retain employees.

In light of this information, human resources metrics are data points that show what is happening in your company. Further analysis may reveal why the negatives are caused. In this way, the human resources department, formerly known as the bad cop, can now turn over the scene to the data. Remember, the key to a successful company is happy employees, and for this, human resources are an essential need.

Key HR performance metrics

Performance evaluation, which is the most important tool of performance management, briefly means measuring the employee’s abilities, potential, behaviors and, accordingly, success within the company. Performance evaluation is an important process both for the correct execution of processes such as promotion, reward, bonus, training, termination of employment for the employee and for the correct positioning of the workforce in the company and obtaining maximum productivity.

Human resources performance evaluation criteria are a tool of great importance for enterprises. These criteria are aimed at evaluating the performance of employees objectively, identifying strengths and areas of development, and ensuring that the company achieves its goals. This evaluation process, implemented by human resources departments, increases the motivation of employees while at the same time enabling strategic decisions to be made to improve performance and support business success. The criteria used in the Human Resources Performance Evaluation process may vary from business or institution to institution and from position to position. However, in general, the criteria that we will share in this content are common evaluation criteria that are often used by many businesses.

HR data reporting best practices


Workday is a digital HR platform preferred by many large and medium-sized companies. It covers many HR processes such as recruitment, performance management, talent management, training management, salary and benefits management. In addition, it enables HR managers to make data-driven decisions with its analytical and reporting capabilities. Workday has a user-friendly interface, mobile access and ease of integration.



Workable stands out as an application that helps to manage recruitment processes in a simple and effective way. It offers support in creating job postings, tracking applications and tracking candidates. It also makes it easier for recruitment teams to collaborate Decently and improves communication between candidates. Workable also helps you to continuously improve recruitment processes by providing data analysis and reporting features.


SAP Success Factors

SAP Success Factors is a platform that helps businesses digitalize their HR processes. It covers HR processes such as recruitment, performance management, learning and development, wage management, workforce planning. In addition, it offers agile working and social cooperation features. SAP Success Factors aims to improve recruitment processes by using advanced technologies such as big data analytics, artificial intelligence and machine learning.


Oracle HCM Cloud

Oracle HCM Cloud is a platform that offers an integrated HR management system. It covers HR processes such as recruitment, performance management, training and development, salary and benefits management. In addition, it includes features such as workforce analytics, artificial intelligence-assisted forecasts and instant analytics. Oracle HCM Cloud has a user-friendly interface, customizable features and a scalable structure.



Personio is an HR management platform designed for SMEs and startups and integrates HR operations such as recruitment, performance management, leave management and payroll into a single platform. In addition, it stores personnel files digitally, allowing you to easily manage leave requests and vacation plans. Personio helps companies make more strategic HR decisions by analyzing workforce data.