Ask an HR Pro: What Workforce Metrics Should I Be Tracking?

Data is everywhere in the business world. From sales figures to website traffic, numbers drive most major decisions. Yet when it comes to people – the most valuable asset of any organization – many companies still rely on intuition rather than hard facts.

Tracking the right data points can transform how you manage your team, but with so many possibilities, where do you even start? Which numbers actually signal health or trouble?

To help you cut through the noise, we spoke with Vickie Krolak, SPHR, SHRM-CP, Principal of Outsourced HR Services at iHire. She explains which metrics matter most and how to use them to build a stronger, more efficient organization.

Why Track Workforce Metrics?

Before diving into the specific numbers, it is helpful to understand the big picture. Why should HR teams and business leaders prioritize data collection?

“Tracking workforce metrics allows you to move from subjective opinions to objective facts,” said Krolak. “It helps you identify trends, catch issues before they become widespread, and make informed decisions that improve your bottom line.”

By leveraging workforce analytics, you can enhance productivity, boost performance, and identify specific areas where your organization needs to improve.

“If you aren’t tracking HR metrics, you are essentially flying blind,” Krolak added. “For example, you might feel like turnover is high, but data tells you exactly how high, which departments are affected, and potentially why it is happening.”

Key Workforce Metrics to Track

So, what should you be measuring? Krolak recommends starting with these five core areas to get a comprehensive view of your workforce’s health.

1. Employee Turnover Rate

This is the classic metric for a reason. It measures the number of employees who leave your organization over a specific period.

“High turnover is expensive and disruptive,” Krolak noted. “By analyzing your employee retention data, you can determine if people are leaving voluntarily or involuntarily, and if there are specific times during their tenure when they are most likely to quit.”

Keeping a close eye on these numbers helps you investigate root causes, such as poor management, lack of career growth, or compensation issues.

2. Employee Engagement

Engagement can feel abstract, but it is measurable. This metric assesses the emotional commitment employees have to the organization and its goals.

“Employee engagement data is often a leading indicator of turnover,” explained Krolak. “If engagement scores start to drop, you can predict that retention issues will likely follow. Tracking this allows you to intervene early.”

You can gather this data through regular pulse surveys, eNPS (Employee Net Promoter Score) polls, or feedback sessions.

3. Absenteeism Rate

We all get sick, but chronic absence is a different story. This metric tracks unplanned absences due to illnesses or other causes.

“High absenteeism often points to burnout, low morale, or a toxic work environment,” said Krolak. “When you use workforce analytics to track these patterns, you might find that certain teams or departments struggle more than others, which gives you a clear starting point for addressing the problem.”

4. Training ROI

Investing in your team is crucial, but are you getting a return on that investment? Training ROI measures the effectiveness of your development programs relative to their cost.

“Many companies spend heavily on training without measuring the impact,” Krolak warned. “By tracking this workforce metrics category, you can see if productivity or performance improves after training sessions. If not, it might be time to adjust your curriculum or delivery method to ensure you have alignment between employees’ needs and your organization’s needs.”

5. Cost Per Hire

How much does it really cost to bring a new person on board? This metric includes advertising costs, recruiter fees, and the time your internal team spends interviewing.

“Data-driven hiring isn’t just about finding the right person; it is about finding them efficiently,” Krolak said. “Understanding your cost per hire helps you budget more accurately and evaluate the efficiency of your recruitment channels.”

How to Implement Metrics Tracking

Knowing what to track is half the battle. Implementing a system to capture that data is the next step. Krolak suggests a structured approach to avoid getting overwhelmed.

Identify Your Business Goals & Key Performance Indicators (KPIs)

Don’t track numbers just for the sake of it.

“Start with what you want to achieve,” advised Krolak. “Are you trying to reduce costs? Improve culture? Speed up hiring? Your KPIs and business goals should dictate which workforce metrics you prioritize.”

Choose the Right Tools

You don’t need a degree in data science to track HR metrics. Many modern applicant tracking systems (ATSs) and HRIS platforms have built-in reporting features, like iHire’s tools that give you insight into your job ads’ performance and how it compares across your specific industry.

“Look for tools that automate the data collection process,” Krolak suggested. “The easier it is to generate reports, the more likely you are to use them regularly. If you are manually entering numbers into a spreadsheet every month, you are less likely to stick with it.”

Regularly Review and Adjust

Data is only useful if you review it. Set a regular cadence – monthly or quarterly – to go over your reports.

“Employee retention data and employee engagement data are not static numbers,” Krolak said. “They change as your business evolves. Regular reviews allow you to spot trends and adjust your strategies accordingly. If you implement a new wellness program, for example, watch your absenteeism and engagement numbers to see if it is working.”

Start Tracking Workforce Metrics Today

Tracking the right metrics gives you the power to make smarter, faster decisions for your people and your business. It allows you to move away from guesswork and toward a strategy built on evidence.

“Don’t be intimidated by the data,” Krolak concluded. “Start small. Pick one or two key areas, like turnover or data-driven hiring metrics, and build from there. The insight you gain will be invaluable.”

Ready to get a better handle on your HR strategy? Visit our Resource Center for more expert advice, or schedule a free consultation with Krolak and her team to discuss your specific needs.