The 5 Metrics Every Board Wants to See from HR This Year
In 2025, HR leaders are expected to provide data that directly ties workforce performance to business outcomes. Boards are increasingly focused on metrics that offer insights into organizational health, talent strategy, and financial efficiency. Here are five critical HR metrics that boards are prioritizing this year:
1. Turnover Rate (with Contextual Analysis)
While overall turnover rates remain a staple metric, boards now demand deeper insights into the reasons behind employee departures. This includes distinguishing between voluntary and involuntary exits, analyzing turnover by department or demographic, and understanding the underlying causes. Such granular analysis helps in identifying systemic issues and areas needing intervention.
2. Employee Engagement and Net Promoter Score (eNPS)
Employee engagement levels are strong predictors of productivity and retention. Boards are interested in metrics like eNPS to gauge employee satisfaction and loyalty. Regularly tracking these scores, along with qualitative feedback, provides a comprehensive view of the organizational climate and helps in forecasting potential attrition.
3. Diversity and Inclusion Metrics
Diversity, equity, and inclusion (DEI) have become central to organizational strategy. Boards are focusing on metrics that reflect the organization's commitment to DEI, such as representation across various levels, pay equity, and progression of underrepresented groups. These metrics not only reflect company values but also impact brand reputation and compliance.
4. Time to Hire and Cost per Hire
Efficiency in recruitment processes is under scrutiny. Boards are examining how quickly and cost-effectively organizations can attract and onboard talent. Metrics like time to hire and cost per hire provide insights into the effectiveness of recruitment strategies and their alignment with business needs.
5. Revenue per Employee
This metric offers a lens into workforce productivity and organizational efficiency. By analyzing revenue generated per employee, boards can assess whether the organization is optimizing its human capital and identify areas where productivity can be enhanced.
Conclusion
In today's data-driven environment, boards expect HR leaders to provide actionable insights that align with strategic objectives. By focusing on these five metrics, HR can demonstrate its pivotal role in driving organizational success.
References
Lattice. (2023). 5 HR Metrics That Matter Most to CEOs.
PrimePay. (2024). HR Metrics That Matter in 2024.
Forbes Business Council. (2021). The Five People Analytics That Matter To A CEO.
At BloomGuarden, we specialize in helping organizations refine their HR metrics to align with board expectations. Our expertise ensures that your HR data tells a compelling story, driving informed decision-making and strategic growth.
