Key Performance Indicators (KPIs) are quantitative measures used to evaluate the efficacy of a company's human resource actions and initiatives. These indicators give vital insights into the effectiveness and impact of HR efforts, allowing firms to make more informed decisions and improve their workforce management.
Example
An example of an HR KPI is "Employee Turnover Rate," which calculates the proportion of workers who leave the organization during a given time period. A low turnover rate implies a steady and engaged staff, whereas a high rate might indicate underlying concerns such as unhappiness or ineffective retention tactics. Monitoring this KPI enables HR to take proactive steps to reduce turnover and increase employee retention.
