What indicators should be defined to measure the performance of an HR strategy?

To measure the performance of an HR strategystrategy, it is necessary to define KPIS (Key Performance Indicators). Choosing the right indicators can sometimes be complex. There are thousands of them, such as governance, employee engagement, or the number of resumes received. In order to enlighten you, you will see on a certain number of processes related to human resources management the most relevant indicators to use in the framework of your HR policy.

Steering the HR function

With regard to the management of the HR function in the broadest sense, we can mention the ratio of HR-related expenditure. We can also highlight performance indicators such as resignation, absenteeism and strike rates, as well as recruitment and employer brand criteria, to measure employee satisfaction.

Talent acquisition

When it comes to talent acquisition, channel effectiveness is an interesting criterion to exploit. This allows us to know where the candidates come from. The channels are more and more numerous since the arrival of social networks and specialized sites. The cost per hire is also an indicator to consider: it corresponds to the entire recruitment process and can include various costs such as those related to advertising on social networks or presence in job fairs.

Workforce planning

When it comes to planning the skills the company will need in the near future, we can mention the percentage of strategic positions that are open, the percentage of positions that currently have a skills gap to fill, or the percentage of people who are likely to retire within the next five years.

Talent Management

For talent management, performance can be assessed by measuring employee turnover, internal mobility rates, and the number of career opportunities offered.

Compensation

In terms of performance management, we can mention the turnover rate of high performers by considering the number of people who have left the company in a particular period. We can also consider the difference between the compensation of high performers and other performance categories.

Performance Management

In terms of performance management, we can mention the turnover rate of high performers by considering the number of people who have left the company in a particular period. We can also consider the difference between the compensation of high performers and other performance categories.

Learning and development

Related to human capital is skill attainment, which measures a learner’s level of knowledge before and after training. We can also address the notion of workplace application, which is used to measure the impact of skills acquired in the field, the idea being to know if the knowledge and skills are actually used in order to improve the relevance of a training and its suitability for a job.

Business intelligence and social controlling

Concerning the evaluation of the social climate as part of the social controllingwe can mention the number of people leaving the organization each year, the average time an employee spends with the company, or the ratio between the number of resignations and the number of departures.

See also our feature on "HR strategy management tools".

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• Human resources management: what HR strategies for the future?
• Best practices to manage your HR strategy in an optimal way
• The different HR management tools to carry out your HR strategy
• HRIS software: the different areas of intervention for the HR function
• How to convince your management to invest in an HRIS tool?
• Is it necessary to be accompanied in the management of an HR strategy?
• What indicators should be defined to measure the performance of an HR strategy?
• HR strategy: how to achieve effective HR reporting?
• Who should drive HR projects in the company?
• Setting up a working group for an HR project: who should be involved?