In a data-driven business world, it is no longer enough to view HR merely as an administrative function. The HR department has long since developed into a strategic partner - provided that it uses key figures and data in a targeted manner for management purposes.
HR Key Performance Indicators (KPIs) provide important information about the performance, efficiency and future viability of your HR processes. In combination with people analytics, this results in real added value: well-founded decisions, forward-looking planning and a clear positioning of HR in the business strategy.
What are HR KPIs?
HR KPIs are quantitative key figures that make the performance and contribution of the HR department measurable. They help to evaluate processes, identify changes and derive strategic fields of action.
Typical HR KPIs are:
- Time to hire: Time from job advertisement to contract signing
- Fluctuation rate: proportion of employees leaving voluntarily
- Further training rate: proportion of employees who have completed further training
- Cost per hire: average cost of a new hire
- Sickness rate: Proportion of days absent due to illness
- Internal mobility rate: proportion of internal appointments
People analytics: from data to insights
People analytics goes beyond the mere recording of KPIs. It describes the use of data analysis to make patterns, trends and correlations in the HR area visible - and to derive specific action strategies from this.
Example:
A company analyzes employee turnover by department, length of service and management behavior. Result: Many employees leave in the second year - often due to unclear goals in onboarding. After the introduction of structured onboarding with clear targets and regular feedback meetings, staff turnover drops by 25 %.
Advantages of a data-driven HR approach
Transparency & comparability
HR KPIs create an objective basis for decisions - internally and in benchmarking with other companies.
Recognizing risks at an early stage
Rising absenteeism, declining training activity or high recruiting costs? Analytics makes risks visible before they become expensive.
Strategic management
Data shows which measures really work - and enables forward-looking personnel planning.
Involving managers
With clearly visualized dashboards, even non-HR managers can be convinced to take responsibility for team KPIs.
Employer branding & reporting
HR KPIs provide meaningful values for sustainability reports, certifications and applicant communication.
How to use HR KPIs strategically - best practices
- Choose the relevant KPIs carefully: Not every KPI is useful for every company. Concentrate on 5-10 central KPIs that fit your strategy.
- Link operational and strategic goals: Reducing time-to-hire is not an end in itself - but part of the goal of reacting more quickly to market changes.
- Ensure clean data sources: Whether time recording, Applicant Management or payroll system - the better the interfaces, the more reliable the analysis.
- Present your KPIs visually: Use dashboards, heatmaps or filter functions to make developments understandable and accessible.
- Develop your KPIs further: regularly ask yourself whether you are measuring the right things. Or can more insights be gained by asking new questions?
FAQ - 5 frequently asked questions about HR KPIs & people analytics
What is the difference between HR KPIs and people analytics?
HR KPIs are the metrics, People Analytics is the analysis and interpretation of this data to support decision-making.
How many KPIs should you track?
We recommend 5-10 strategic HR KPIs, supplemented by operational KPIs for specific use cases.
Which data sources are required?
Data from HRIS, time recording, Applicant Management, payroll accounting and possibly surveys are typical.
How secure is working with personal data?
Modern tools such as Umantis work in compliance with the GDPR and DSGVO - with role and access controls, audit logs and encrypted data.
How does this benefit me specifically as an HR manager?
Greater visibility, more targeted action, well-founded decisions - and a stronger position as a strategic partner in the company.
If you want to control HR, you have to be able to measure
HR KPIs and people analytics make the value of HR visible, measurable and controllable. They not only help to improve processes, but also to focus on the right topics - whether securing skilled workers, employee retention or transformation.
With the right software, the use of HR key figures becomes simple, secure and effective.
Find out more:
Severin Ravaioli
Head of Sales Switzerland
severin.ravaioli@umantis.com
+41 76 415 32 45
