People Analytics: 14 Key Metrics To Measure

Introduction

HR leaders are increasingly turning to people analytics to make informed decisions about workforce management, employee engagement, and organizational strategy. By measuring key metrics, businesses can unlock insights to optimize performance, enhance employee experiences, and align their workforce strategy with long-term goals.

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In this blog, we’ll explore what people analytics is, and cover the 14 essential metrics that every organization should track to harness the power of people analytics.

What is People Analytics?

People analytics is the practice of collecting, analyzing, and leveraging employee data to inform HR and organizational decisions. It shifts HR from a traditionally intuitive function to one driven by data, enabling organizations to make evidence-based choices that impact productivity, retention, and employee satisfaction.

People analytics isn’t just about numbers—it’s about understanding trends, identifying challenges, and unlocking opportunities to build a more effective and engaged workforce. By tracking the right metrics, organizations can assess everything from recruitment efficiency to employee well-being, driving better outcomes for both employees and the business.

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The 14 Key Metrics in People Analytics

1. Employee Turnover Rate

This metric represents the percentage of employees who leave the organization during a specific period. High turnover rates can indicate dissatisfaction, leadership challenges, or a misalignment between employee expectations and company culture. Regularly benchmarking turnover rates helps organizations identify and address underlying issues to retain top talent.

2. Retention Rate

Retention rate measures the percentage of employees who stay with the organization over a set period. It complements the turnover rate by showing workforce stability and loyalty. High retention rates are often a sign of strong employee satisfaction and effective HR practices.

3. Time-to-Fill Vacancies

This metric calculates the average time required to fill an open position. A longer time-to-fill might signal inefficiencies in the recruitment process or challenges in attracting talent, while shorter times may indicate effective hiring practices or an attractive employer brand.

4. Cost per Hire

Cost per hire is determined by dividing the total recruitment costs by the number of new hires. This metric helps organizations evaluate the efficiency of their hiring process and allocate budgets effectively. By benchmarking cost per hire, companies can optimize recruitment strategies.

5. Employee Engagement Score

Employee engagement scores assess the motivation, satisfaction, and commitment of employees to their roles and the organization. Highly engaged employees tend to be more productive, innovative, and loyal. Tracking and improving engagement scores can lead to better business outcomes.

6. Absenteeism Rate

The absenteeism rate measures the percentage of scheduled workdays missed by employees. High absenteeism may indicate dissatisfaction, poor health, or a disengaged workforce. Benchmarking absenteeism against industry standards helps identify areas for improvement in employee well-being and engagement.

7. Revenue per Employee (RPE)

This metric, calculated by dividing total revenue by the number of employees, provides insight into workforce productivity. Higher revenue per employee typically indicates a well-utilized and efficient workforce. Comparing this metric to industry benchmarks helps identify opportunities for improvement – Benchmark your RPE for free.

8. Training and Development ROI

This metric evaluates the return on investment for training programs, reflecting the impact of upskilling and reskilling efforts on employee performance. It helps justify learning and development initiatives while identifying areas where additional training may be needed.

9. Internal Mobility Rate

Internal mobility rate measures the percentage of employees who move to new roles or positions within the organization. High internal mobility indicates strong career growth opportunities and a commitment to retaining and developing talent.

10. Diversity, Equity, and Inclusion (DEI) Metrics

DEI metrics track representation, pay equity, and inclusivity across various demographic groups. Monitoring these metrics ensures that organizations uphold their commitment to diversity, create inclusive workplaces, and mitigate bias in hiring and promotion decisions.

11. Manager Effectiveness Score

This metric captures employee feedback on a manager’s leadership, communication, and support. High manager effectiveness scores correlate with better team performance, engagement, and retention.

12. Span of Control

Span of control measures the average number of employees reporting to a single manager. This metric is critical for understanding managerial workload and organizational efficiency. Optimizing the span of control helps balance managerial responsibilities and ensures effective oversight.

13. Employee Net Promoter Score (eNPS)

eNPS measures the likelihood of employees recommending the organization as a great place to work. It’s a strong indicator of employee satisfaction, engagement, and overall organizational culture. Improving eNPS can enhance employer branding and attract top talent.

14. Function as % of Employees

This metric examines the proportion of employees within a specific function (e.g., IT, HR, Operations) relative to the total workforce. It helps assess whether staffing levels are appropriately balanced to meet organizational needs and align with strategic priorities. For instance, a tech-focused company may benchmark a higher percentage of IT staff compared to industry norms.

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Conclusion

Tracking these 14 key metrics empowers organizations to make data-driven decisions that enhance workforce performance and improve employee experiences. People analytics is not just about understanding where you stand—it’s about identifying actionable insights to drive strategic improvements.