The HR Playbook: 10 Metrics that Prove the Value of HR

The HR Playbook: 10 Metrics that Prove the Value of HR

The HR Playbook: 10 Metrics that Prove the Value of HR

HR is Sitting on a Gold Mine of Data: Learn How to Use It

All businesses come with a lot of pressing problems across various departments that include HR, payroll, ATS and time systems, such as:
  • Troubleshooting the recruiting pipeline
  • Predicting labor costs
  • Overtime
  • Turnover
The HR team is not made with data scientists so they do not have the support or the resources or the budget required to make sense of all the data available to them to help them recruit the best possible employees for their organization. Finding new talent has never been more difficult, which is why the HR team needs to utilize the following metrics:

Time to Fill

This metric tracks the number of days it takes to fill a place at the company, starting from the time the requirement was placed till the time the job offer was accepted. It showcases the effectiveness of the overall recruiting process.

Referral Rate

The number of referrals the HR team receives from its employees reduces the time it takes to fill an open job position in the company.


This is the total recruitment cost of finding and hiring candidates. It identifies how much the company is spending on finding new talent.

Labor Cost

HR needs to see if the employees are engaged enough, based on the rate of absenteeism and how much each absentee costs the company. They also need to check if they are being compensated enough based on market rates.

Absenteeism Rate

It is important to calculate this because it impacts productivity in the company as well as team morale and overall performance.

Total Financial Impact

This is the total compensation value of the number of days employees remain absent to see the total impact it has on the company.

Total Labor Cost

The total cost of all hours worked by the employees in the company, along with the payroll and tax benefits helps in identifying working trends in the company.

Actual Total Compensation vs. the Budget

This comparison helps in balancing the budgets along with the compensations for emplooyees in a creative manner.

Turnover Rate

Tracking the turnover rate helps uncover the deep seated issues in the company.

Voluntary Turnover Rate

By tracking the employee rate of the people who quit, it becomes easy to identify if the issue lies within the hiring process or the management.

Turnover Rate by Segments

Asking the employees why they leave will help improve the working atmosphere in the company.

Key Takeaways:

  • HR needs to follow a few tactics to help improve the working processes across the company
  • These tactics include following the absenteeism rate and the turnover rate
  • HR also need metrics to track the company budget and employee compensation

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