How to measure Human Resources management indicators

7 of April, 2025

Do you want to enhance the management of your Human Resources department but don’t know where to start? Don’t worry, in this article we will tell you how to measure HR management indicators to optimize the processes in your company.

Human Resources management is crucial to the success of any organization, and one of the best ways to ensure its effectiveness is through the measurement of management indicators. These indicators allow companies to evaluate the performance of their HR policies and practices, identify areas for improvement and make informed decisions.

That’s why, we will focus on the most important metrics that you should keep in mind, and how personnel management software can help you automate this follow-up. Keep reading for more information!

What are HR management indicators?

Human Resources management indicators or KPIs (Key Performance Indicators) are metrics that measure the performance of human resources processes. These allow you to know aspects such as:

• The work environment.
• The labor productivity.
• The efficiency of recruitment.

With them you can make better decisions based on real data and objectives. In addition to identifying areas for improvement, prevent problems and optimize your talent management.

Importance of HR management indicators:

• Informed decision-making: they help managers make decisions based on concrete data.
• Continuous improvement: they allow to identify areas of improvement and develop strategies to optimize HR performance.
• Strategic alignment: they ensure that the HR policies are aligned with the strategic objectives of the company.
• Transparency and accountability: they promote transparency and accountability in personnel management.

Some HR software offers several ready-to-use HR management indicators. What are you waiting for to get to know the pulse of your organization? Start measuring today.

Types of HR management indicators

You’ve already seen it. HR management indicators are essential to measure the performance of your company. To better understand them, we explain the different types that exist:

1. Company control

There are some Human Resources management indicators that will serve you to carry out an exhaustive control of your company. They will help you to know data such as:

• Number of employees by area and department.
• Labor absenteeism.
• Productivity per employee.

This will allow you to detect areas for improvement or set clearer cost reduction targets.

Examples of indicators:

• Hiring cost: it calculates the total cost of hiring a new employee, including advertising, interviews and training.
• Return on Training Investment (ROI): measures the financial return on investments in training and development programs.
• Staff turnover rate: calculates the percentage of employees who leave the company in a certain period.

HR management softwares like Sesame HR allow you to automate the control and monitoring of all this information in a simple way.

2. Personnel selection

A good personnel selection is key to the success of your company. Making informed decisions with precise data about the hiring process will take your processes to another level. For this, you can use HR management indicators such as:

• Average time to fill a vacancy.
• Average cost per hire.
• Staff turnover.

With these KPIs you will be able to optimize your recruitment and talent retention processes. Thus, you will hire the ideal candidates.

3. Employee training

Paying attention to employee training is key to your company’s growth. Measure indicators such as:

• Training hours per employee.
• Investment in training.
• Training evaluation. 
• Internal promotion.
• Competence improvement

Investing in your employees is profitable. In this way, you improve their job motivation, reduce turnover and attract new talent.

4. Job satisfaction

To measure job satisfaction of your employees with the help of surveys, there are some key metrics that you can follow:

• Work environment.
• Satisfaction index.
• Level of commitment.

With these data, you will be able to improve those aspects that concern your employees and maintain their commitment to the company.

5. Labor productivity

One way to measure labor productivity of your employees is by conducting performance evaluations. With them, you can extract indicators such as:

• Achievement of objectives.
• Average time of task execution.
• Project completion on the established date.

It is important to talk with your employees to know what motivates them and how you can improve their experience in the company. Remember, motivated and committed employees are usually the most productive.

How to measure the HR management indicators

It’s time, but you’re not sure how to measure HR management indicators? Remember, it is crucial to have metrics that measure the performance and labor productivity of your HR team.

Knowing these indicators you will make better decisions. So we reveal the process to follow so that you can measure the pulse of your company.

1. Identify key company indicators

Once you have clear what your business strategic objectives are, you should focus on selecting the HR management indicators that will allow you to measure progress towards these goals.

Well-chosen HR KPIs will give you valuable information about the health of your team. And they will help you identify areas for improvement to optimize processes.

Actions:

• Define strategic objectives: clarify the company’s strategic objectives and how HR indicators can support these objectives.
• Select relevant indicators: choose the indicators that provide critical information to evaluate HR performance.

2. Choose measurement tools

To measure the HR management indicators, you must choose the right tools. The most popular digital options are:

• HR software: programs like Sesame HR offer analytic and reporting modules that automatically measure KPIs.
• Spreadsheets: a more basic and economic format would be to use Excel or Google Sheets. They require a lot more manual work, but they are versatile.
• Surveys and feedback: implement survey tools and feedback collection to evaluate employee satisfaction and performance.

Always choose according to your budget and needs.

3. Collect relevant data

To correctly measure the Human Resources management indicators, you need to collect relevant data from your company. For this, you need a employee database.

You can feed this database with the information associated with your employees, as well as employee hires and dismissals, or the results of all the labor surveys you carry out.

Actions:

• Data sources: identify relevant data sources, like record attendances, performance evaluation results, and satisfaction surveys.
• Frequency of collection: set the frequency at which data will be collected (eg., monthly, quarterly, annually).
• Consistency in collection: ensure that data is consistently and uniformly collected to avoid biases.

And remember, to automate data collection you can always opt for programs like an HR software.

4. Analyze the results

It’s time to analyze the results obtained to draw conclusions. You need to review what HR management indicators you have measured, what data you have collected and how you can use them to your advantage.

Write an HR report with all the deviations you detect so you can set the corresponding corrective actions. Indeed, don’t focus only on the negative. Remember to also highlight everything that you are doing well.

Actions:

• Comparison with benchmarks: compare results with internal and external benchmarks to evaluate relative.
• Trend identification: spot trends and patterns in your HR data to better understand workforce dynamics.
• Data visualization: use data visualization tools to present results in a clear and understandable way.

And if you want to speed up the process, you can always turn to AI-powered HR solutions.

5. Implement corrective actions

If you notice that your HR management indicators aren’t performing as expected, it’s time to implement corrective actions.

Adjust your approach and review your processes. You may need to redefine goals, simplify data collection, or automate HR reporting.

Actions:

• Develop action plans: create specific plans to address the areas for improvement you’ve identified.
• Monitor progress: closely follow the implementation of corrective actions and measure their impact on HR metrics.
• Adjust strategies: adapt your HR strategies based on the results and your organization’s evolving needs.

Don’t be afraid to ask your employees or external experts for input. An outside perspective can bring innovative solutions. And take inspiration from other departments that have successfully overcome similar challenges.

Benefits of tracking HR management indicators with Sesame HR

Using HR software like Sesame HR to measure your HR management indicators comes with several advantages.

You’ll be able to automate the measurement process and generate custom reports on your HR team’s performance.

You’ll also have access to standardized metrics that simplify tracking—and you’ll be able to see how other departments are performing to uncover areas for improvement.

Remember, Sesame HR’s cloud platform gives you access to your HR data anytime, anywhere. You can monitor your KPIs in real time and make informed decisions based on up-to-date information.

Now is the time to try our HR software. Don’t be left wondering—request your 14-day demo today. You won’t regret it!

Iris Serrador

People Partner | LinkedIn | | Web | +post

Customer-oriented, both internally and externally, specializing in the definition and implementation of HR policies, as well as talent management, recruitment, and retention. Strong leadership, communication, negotiation, organization, and team coordination skills. Over 12 years of experience in Human Resources.

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