HR indicators: 5 key metrics for your department

Table of Contents


The Human Resources department constantly deals with different parameters, whether referring to absenteeism, performance or turnover rates. These HR indicators are basic and known to every professional responsible for the operational part of the sector.

However, for a strategic management of an organization's employees, especially in the highest positions, it is essential to deepen the analysis of this data. To this end, it is necessary to understand how the crossing of these metrics can generate essential indicators for the evolution of projects.

In order to shed some light on this issue, we have listed 5 fundamental parameters for a strategic HR and how to generate them.

The evolution of metrics analysis

Analyzing operational indicators, such as those that measure absenteeism or a company's turnover rate, is essential to monitor the reality of the department. Through this analysis, it is possible to evaluate the results of projects being executed, identify gapsthreats and even trends, making it possible to improve Human Resources processes.

But these daily metrics are not enough to take the management of the sector to a strategic and more important level for the organization, ensuring the success of the company's actions. Therefore, it is necessary to observe the parameters of direct and indirect factors to define new HR indicators.

Thus, with an in-depth and comprehensive analysis, the head of Human Resources can better direct the efforts in order to guarantee the evolution of the general performance of the other leaders of the company. In addition, these more strategic indicators allow insights better to support people management policies.

5 most strategic HR indicators

One of the biggest sins of a Human Resources manager is to believe that the more information he gathers, the better his administration will be. This is because the excess of indicators, or the use of inconsistent data, can generate wrong interpretations.

Therefore, it is important to correctly choose the most strategic HR indicators. To do so, define the company's business plan and set goals. This will make it easier to see which (or which) of the following parameters are essential for you.

1. Performance indicators

Performance indicators are not only effective in providing efficient analysis of operational processes or grassroots professionals. This data is also excellent and fundamental for strategic management.

It is precisely through them that the sectors can be easily evaluated under different aspects. Thus, consequently, it is possible to obtain information about the performance of the leaders. And this is essential for managers to also receive feedback from the company.

However, care must be taken, as there are many performance indicators. Therefore, the chosen metric needs to be in complete sync with the organization's goals. Only essential data should be considered so that the analysis does not become too subjective or does not inspire relevant actions to correct and improve the team's results.

2. Talent retention indicator

Retention of talent is a basic indicator of Human Resources, however, it is important for a more strategic performance. This is because it is measured by tracking the number of lost talents.

In addition, it allows the identification of conflicts in top management, which are not always clear to HR. But for this indicator to be founded, it needs to have a good management of the company's talent pool and an excellent exit interview.

It is important to observe this indicator in conjunction with the global business scenario. That is, relating it to performance appraisals and market prospects. After all, the more a company's segment grows, the greater the chances of its managers receiving new proposals.

3. Innovation indicators

Innovation indicators have been occupying an increasing space in companies' agendas. This is because their measurement is fundamental for the management of innovation and essential within organizations that have, in their strategic objectives, the constant development of new products and processes, in addition to the significant improvement of current ones.

However, there are several innovation indicators and the choice of which one (or which) the organization will use must be made in accordance with its strategic planning. Generally speaking, these metrics are:

  • inputs: when they indicate the company's effort for research and development, compiling everything from financial resources to human resources (such as working time);
  • outputs: when they tangibly measure the results achieved by the company (such as the number of patents and publications).

4. Leadership indicators

The leadership indicator is essential for companies that place high expectations on their leaders for the success of the business. This is a very common metric, especially in more modern organizations, such as startups.

Through this metric, it is possible to develop new leaders and improve the performance of leadership professionals. This is possible by monitoring the performance of different teams within the same company.

It is only necessary to remember that the leadership indicator is the balance of a set of HR parameters, such as the previous three, and of high performance, such as:

  • feedbackadopting both the practice of giving it to subordinates and asking for their opinion;
  • internal locus of control, realizing the successes and failures in your projects and those of your team;
  • purpose, having clarity in its objectives and keeping the focus on its goals and those of the professionals it leads;
  • communication, valuing empathy in the communicative process to cultivate a good relationship with others;
  • resilience, being able to adapt to changes in the scenario, proactively improvising in times of adversity;
  • self-efficacy, remaining confident in their ability to achieve, transforming challenges into opportunities;
  • optimism, always showing the expectation of favorable results and positively influencing the team.

5. Indicators of employer branding

In fact, the employer branding It is a set of strategic actions that seek to implement or improve positive aspects of working in an organization. With this strengthening of the company's image among professionals in the market, efforts to attract and retain the best talent are minimized and results are optimized.

Although much of these actions depend on the company's tactical planning, leaders are greatly affected by the employer branding and play a key role in consolidating these parameters. After all, managers are the ones who mediate interests between employees and the organization.

It can be said that among all HR indicators, this is one of the most strategic for HR. This is because, to calculate it, it is necessary to compile metrics such as engagement, absenteeism and turnover. All of them are directly or indirectly related to the evaluation of the employer branding.

In this article, it was shown how the in-depth analysis of HR indicators is important for a department that operates in a more planned way. In fact, routine metrics that are already well known by the Human Resources sector are not enough to predict future scenarios.

But for that, it is essential to align the choice of indicators with the company's strategic planning. Only then move on to cross-referencing and related data analysis.

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