In modern HR, strategy without data is just guesswork. Talent leaders are expected to do more than hire and support employees – they’re expected to drive business outcomes. That’s why data analytics has become such a powerful tool.
Every resume, performance review, and exit interview contributes to a growing pool of information. With the right analysis, these touchpoints reveal what’s working, what needs fixing, and where action is required. Instead of reacting after the fact, you can spot early signals and act with confidence.
Let’s dive into the key HR data analytics metrics you should track:
1. Cost-per-Hire
Cost-per-hire tells you the cost of bringing someone new into the company by source, including spending on external agencies, hiring ads, interviewing systems, job boards, employee referrals, and internal recruiters.
How to calculate it:
Cost per Hire = (Internal + External Recruitment Costs) / Total Number of Hires
For instance, if you spent $120,000 to hire 10 people, that’s $12,000 per hire. But it’s not that simple. It helps you determine whether you are getting value for your spending. For instance, referrals might cost less but lead to stronger hires compared to external agencies. Tracking this helps you put resources into the channels that deliver quality candidates at the right cost.
2. Employee Turnover
Turnover measures the number of people leaving your company during a certain period.
How to calculate it:
Employee Turnover = (Number of terminations during period / Number of employees at start of period) x 100
If your marketing team shows a 28% turnover rate while the company average is 12%, it can be a sign of inefficiency and employee dissatisfaction. Analyzing exit interviews can help uncover patterns and guide better retention strategies.
3. Absenteeism Rate
This rate shows how often employees are missing work without planning ahead.
How to calculate it:
Absenteeism Rate = (Number of unscheduled absent days / Total working days) x 100
High absenteeism isn’t just about people not showing up, it can be a red flag for burnout or low morale. Imagine your support team’s absenteeism jumps from 2% to 7% in one quarter. After analysis, you realize that the team is struggling with adjusting to a new shift schedule. Armed with that data, you can adjust schedules or roll out wellness initiatives before the issue affects performance.
4. Revenue per Employee
This metric reveals how much revenue each employee generates, giving you a sense of overall workforce productivity.
How to calculate it:
Revenue Per Employee = Total Revenue / Total Number of Employees
If two companies both have 100 employees, but one generates twice the revenue, the number tells a story. Maybe they’ve invested more in training, or their team structure is leaner. Tracking this over time shows whether your investments in hiring and development are paying off in real business impact.
Metrics Matter for Data-Driven HR
These metrics transform the human resource function from reactive problem-solving to proactive. Analytics bring precision into HR processes by grounding decisions in actual trends and patterns drawn from your organization’s data. Instead of waiting for turnover to hurt performance or absenteeism to disrupt teams, you can act on early warning signals. With the right data-driven HR approach, analytics doesn’t just answer “what happened”, it explains “why it’s happening” and “what to do next.”
