A detailed guide to KPIs for HR and recruiters

The kpi indicators for the HR generalist department are a set of key values that characterize the efficiency of the company and its employees. They often include the rate of staff turnover, the degree of fulfillment of the plan for the department, the number of successful transactions for the reporting period. The task and goals of kpi for hr – to track in practice the result of the work of an employee, division, department. Based on the information obtained, a special strategy is developed to increase the productivity of the firm.

KPI system for HR and recruiting: how it works in practice

Based on the key KPI data, a prediction of strategic and long-term goals and their description is formed. For a number of important indicators, the HR KPI system is not suitable. It is actively used for metrics related to the general principle of business. The essence of HRM strategy is also based on the general postulates of the firm.

When considering KPIs based on HR, metrics are formed to indicate the positive impact of HR on the organization. One KPI index is developed for all objectives. Each of them can be decomposed into several simplified objectives. If the system is built correctly, there is a link between all KPIs. They have a unified direction. It is allowed for conflicts to occur between the coefficients.

KPIs and HR metrics: key performance indicators of the personnel

To achieve results, to conduct a thorough analysis of the business process, HR metrics are needed. Management uses them to evaluate the performance of a particular employee. A department, new employees, a division can be evaluated. Based on the metrics, experts identify the involvement of personnel in the work process, indicators of personal effectiveness and other parameters. To build a metric, two groups of indicators are used:

1. HR department performance parameters. These are broad values describing the effectiveness of using the tools – conducting operational activities. The ratio of these data is significant for managers, CEOs, top managers.
2. Personnel performance indicators. They indicate how much the labor force works efficiently, whether there is financial efficiency from the work of subordinates. To calculate how profitable a particular employee is for the firm, it is necessary to compare the cost of his maintenance with productivity.

The HR service is responsible for three tasks: motivating employees to develop, with an increase in the quality of their labor, organization of training, introduction of innovation into the usual system and hiring new personnel, analyzing the results of the work of outgoing specialists.

Indicators kpi for the recruiter – list

The main indices of kpi for a recruiting manager include:

• Compensation, average level of employee satisfaction;
• Percentage of cost per employee for time away from work;
• Staff productivity;
• Employee involvement in the firm’s activities;
• Number of missed work days during the reporting period;
• Employee Satisfaction. Increasing the indicator helps to reduce turnover;
• Loyalty towards the company. Example: the probability that a subordinate will advise his acquaintances to contact the organization where he works or will use the services himself;
• Innovativeness. The level of development of the organization grows due to the introduction of innovative approaches and technologies;
• Part of expenses spent on subordinates’ work;
• Internal career growth;
• Active and passive turnover;
• Number of unwanted dismissals;
• Effectiveness of trainings, courses, education;
• Qualitative of newly recruited employees;
• Staff turnover after a year, quarter, half a year after employment.

Responsibility for compliance with the indicators lies with the HR department. Specialists must control all kpi in hr, take the necessary measures to establish the situation in the team.

How the kpi system for the HR manager is realized

The realization of kpi on recruiting consists of several following steps:

1. The work of the organization, its performance, is measured by certain indicators. It is necessary to select and approve the main ones.
2. Specialists are engaged in the formation of a matrix for kpi indices. They indicate how effective the work of the employee is.
3. Formation of a motivational strategy for the staff.
4. Alerting the entire staff about the introduction of innovative principles of work analysis and control.
5. Introducing the system. The company may create a small team for the purpose of testing the innovation.
6. Counting the results. To get an answer, to determine the productivity of the activity of a particular cadre, a separate document is drawn up. All indicators for each employee separately are recorded in it.

Signs of a quality KPI system of a recruiter

The principle of building a system is chosen depending on what question the HR department or the head of the company wants to get an answer to. The main criteria of a qualitative KPI:

• Accessibility. The system and coefficients should be transparent, simple and understandable for everyone;
• Numerosity. Too many coefficients should not be used. This will make the study less clear and scatter attention;
• Layout of the indices. By breaking down the KPI into a few simple tasks, it is easier to find the root cause of the problem, analyze the cost of hired workers, personnel costs and other aspects.