If you’re looking for ways to support your HR strategy and prove your departments worth to executives look no further than data and metrics.

There are many metrics you can use to determine the effectiveness of your HR department, including recruitment, turnover, health and wellness and more.


The better you understand the effectiveness of the HR functions you execute, the greater your departments success in continuing to support employees, management and the business’ goals.

With so many metrics to choose from, we’ve put together a list of the ones we believe will be the top HR metrics of 2020.

Job Satisfaction Rate

If you don’t know the level of satisfaction among your employees, you won’t know what you’re doing right and what can be improved.

Employee satisfaction should rank high on the need-to-know list for any human resources department. Measuring employee satisfaction can help HR when building its current strategy, particularly when it comes to focusing on meeting employee needs and increasing overall engagement.

Using a survey to determine your employees’ levels of satisfaction is the first step in calculating this metric. Once you’ve had them complete a survey, you can calculate the bottom- line metric.

To calculate job satisfaction rate:

Job satisfaction rate = number of people who report being satisfied ÷ total number of employees

Cost Per Hire

Talent acquisition is a major aspect of HR’s duties. How successful your business is in recruiting fresh talent has an impact on your company’s bottom line. If you’re working with a large HR department, you may have an employee who specializes in recruitment. If not, you may be using outside recruiting services to help with your talent procurement.

Determining the cost of each hire can help determine whether you need more in-house recruiters, or if the outside service you’re using isn’t working.

When putting together your HR metrics, you can easily determine Cost Per Hire by adding your total internal recruiting costs and external recruiting costs and then dividing that number by the total number of new hires within a set time frame.

To calculate cost per hire:

Cost Per Hire = (total internal recruiting costs + external recruiting costs) / (total # of hires within a set time frame)

Turnover Rate

Replacing a mid-level employee can cost around 20 per cent of their annual salary. If you have an employee making $55, 000, that means your business would lose around $11, 000 if that employee were to leave.

While many look at turnover as an HR issue, it’s so much bigger than that. The turnover costs for HR are easy to calculate—as they’re mainly down to the recruiting and hiring process for a replacement. But turnover is, well, insidious. The department that’s lost an employee now must make up the gap left behind by that employee. This means other team members will have to pick up the slack, which in turn can lead to an increase in workplace stress as they’re diverted from their regular work schedule, potentially leading them to work overtime.

Add to that the time required to train a new hire, which will require both the team manager’s time and that of other employees, affecting the team’s overall productivity levels.

Determining employee turnover is one of the most important HR metrics you can calculate. Turnover can indicate issues with management, workload, company culture and more.

To calculate your turnover rate:

Turnover Rate = (# of departures during X period/average # of employees during X period) x 100.


Absenteeism in the workplace costs upwards of $16 billion annually. It’s a costly issue that’s often indicative of an employee’s mental state. Over the past decade companies began to focus more on employee health and wellness. Healthier employees (both physically and mentally) are known to be happier and more productive.

Knowing the rate of absenteeism in your workplace can help you determine areas of concern you may not be aware of. If you’re seeing higher absentee rates in a particular department, much like with retention, this can indicate an issue with management or workload, among other things.

To calculate employee absenteeism:

Absenteeism = workdays missed / total workdays scheduled

Revenue Lost to Position Vacancy

How fast your HR team can recruit affects your business’ bottom line. The recruitment process needs to be efficient and timely. The slower it takes to recruit new hires, the greater a team’s loss of productivity and revenue.

Knowing how much revenue you’re losing due to position vacancies can help your HR team determine whether the hiring process is efficient, and if not, what can be done to improve it.

To calculate revenue lost to position vacancy:

Revenue lost to position vacancy = (annual revenue / number of employees) / 220 working days X 1,2, or 3 multiplier

Revenue Per Employee

While most businesses recognize the importance of hiring new talent, often HR is required to provide a sound argument for a hiring spree. One way to do this is to demonstrate how much revenue each employee is bringing in. If you can demonstrate employees are bringing in more than what it costs to pay them, you’ve got a sound argument for hiring more employees.

To calculate revenue per employee:

Revenue per employee = total revenue / total number of employees

Pay Equity

Pay equity is an ongoing battle for women and visible minorities. Fortunately, more companies are recognizing the importance of pay equity and working to ensure they offer it to their employees.

Pay equity supports employee productivity, improves retention and boosts employee morale.

Determining pay equity is more involved than any of the other metrics we’ve discussed, and it’s harder to break down into one simple calculation. Fortunately, the Canadian government offers a thorough outline of the many ways you can calculate it.

Why Metrics Matter

The insights HR gains from metrics benefit every aspect of a business. These insights help HR determine the means necessary to support employees and management as they work towards meeting their yearly goals and increasing (or maintaining) revenue streams.

These metrics also help HR perform as a strategic partner, helping HR guide a business towards more engagement, improved culture and higher overall employee satisfaction.