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Human Resources Metrics
The most important HR and people operations metrics and KPIs. Learn about which ones are best for you, vote, and contribute your own.
Cost Per Hire
Cost Per Hire is a fundamental recruiting metric, that helps Human Resource professionals budget, calculate a return on their effort, and understand how effective their employee brand is when recruiting talent. Cost Per Hire is defined as the internal and external costs required to hire a new employee.
Employee Growth by Function
Employee Growth by Function measures how each organizational function is forecasted over a 1-5 year period. This hiring plan is typically factored into the financial model.
Employee Turnover Rate
Employee Turnover Rate is the percentage of employees who voluntarily or involuntarily leave an organization (typically calculated annually). You should consider voluntary and involuntary categories separately, in addition to looking at overall Employee Turnover Rate.
Expenses per Employee
Expenses per Employee is a measure of the Operating Expenses for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Just like Revenue per Employee, this ratio is often used to compare companies within the same industry.
Full-Time Employees
Full-Time Employees are permanent staff members who typically work more than 30 hours per week or four days weekly, depending on your organisation's definition and local labour standards. Unlike temporary, seasonal, or contract workers, full-time employees represent your core workforce with ongoing employment relationships. In most jurisdictions, full-time employees are entitled to comprehensive benefits including healthcare coverage, vacation pay, statutory holidays, and other employment standards protections as defined by local labour laws.
Full-Time Equivalents
Full-Time Equivalents (FTE) is a standardised workforce measurement that converts all employee types—full-time, part-time, contractors, interns, and temporary workers—into equivalent full-time positions. This calculated metric provides a unified view of your total workforce capacity by expressing everyone's contribution as fractions of a standard full-time schedule (typically 40 hours per week or 5 days). Unlike simply counting heads, FTE gives you the true picture of your organisational capacity and enables accurate cross-company comparisons regardless of employment structure.
Payroll to Revenue Ratio
Payroll to Revenue Ratio, frequently referred to as Salary to Revenue Ratio, is a productivity metric that measures how effective a business is at utilizing its labour costs to produce revenue. As with any ratio, it's always important to understand both the numerator and the denominator and how changes to either will impact the number.
People from Underrepresented Minority Groups in the Team
People from Underrepresented Minority Groups in the Team measures the percentage of team members whose proportion in the team, company, industry, or other subset, is less than their proportion in the general population.
Profit per Employee
Profit per Employee is a measure of Net Income for the past twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Because labour needs differ across sectors, this ratio is often used to compare companies within the same industry.
Revenue per Employee
Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.
Time to Fill
Time to Fill is the amount of time it takes a Human Resources Team to fill an open position. It can indicate where HR teams can make process improvements. It can also demonstrate changes in the hiring market.
Time to Hire
Time to Hire measures the duration between when a selected candidate first enters your hiring pipeline and when they accept your job offer. This metric evaluates your organisation's speed and efficiency in moving preferred candidates through the hiring process, serving as a critical indicator of HR execution capability, competitive market positioning, and talent acquisition effectiveness. Unlike Time to Fill, which measures the complete recruitment cycle from job posting to offer acceptance, Time to Hire specifically focuses on how quickly you can secure top talent once they've been identified.