Top 5 HR Success Metrics That Tell the Real Story

You've likely come across countless articles on the most critical HR success metrics, only to feel more overwhelmed than informed. Employee retention statistics, time to hire, engagement scores—we know it’s a lot to take in. Tracking numbers is one thing, but understanding what those numbers say about your people and your company is another.

Let’s help you cut through the noise. No fluff, no vanity metrics, just key data points that give you real insights and help you drive HR success.

Top 5 HR Success Metrics

Employee engagement and satisfaction steal the spotlight regarding HR metrics, and for good reason. They offer a direct glimpse into how your people feel about their work. But if you want a complete picture of your organization’s health, there are a few other metrics worth observing.

1. Employee Turnover

Turnover doesn’t just reflect who’s left within a given year. It can reveal why they’re going if you dig deeper, making it essential to look beyond the numbers and examine the story behind them. Why did employees leave, and how long had they been with your company? Keep a close eye on early turnover, especially the 90-day quit rate.

A turnover rate above 10% is alarming, but if your 90-day quit rate also creeps into that range, you’ll want to figure out why employees are so quick to depart. Start with your exit interviews. They can help you uncover the why. Then, have open conversations with your team. Let them know their honesty is welcome, even if the feedback is hard to hear. The willingness to listen and act on that information can be a turning point for building a workplace where people want to stay.

2. Employee Absenteeism

Absenteeism tracks unplanned time off, like when someone calls out sick, needs a mental health day, or stays home to care for a child. It doesn’t account for vacations, weekends, and holidays. Absenteeism is tricky because the sweet spot lies in balancing time off with consistent productivity.

Too low might mean employees are afraid to call out or don’t have access to adequate sick time. Too high could signal disengagement, dissatisfaction, or conflict. To help pinpoint the cause, check the absenteeism rate by individual and department to locate a pattern. Then, review your sick day policies to check if they’re compatible with current times and employees.

3. Employee Retention

Retention and turnover go hand in glove. If your turnover is high, your retention rate should be a key focus for improvement to reduce costs and maintain stability. But don’t aim for perfection here. A 99% retention rate isn’t always a good thing. Some healthy turnover is natural and even necessary. People retire, move on, or seek new challenges, creating space for others to grow within your company. That said, overall retention doesn’t always tell the whole story. Break it down by manager or department for a more precise pulse check.

Let’s say you lost 10 employees last year, and four came from the same team—that’s worth investigating. Evaluate the responses to exit interview questions and compare them with the employee retention rates for the team and its members to identify trends and areas for improvement.

4. Average Employment Length

Average employment length can give you helpful context, but it’s not a standalone deal-breaker. In 2024, the U.S. national average was 3.9 years, the lowest since 2002. Naturally, you want employees to stay longer. The longer they wait, the more they understand your company, products, and customers.

As with any HR success metrics, there are nuances to consider. If you're a long-established company in a low-turnover industry and your average tenure is under two years, it's worth reconsidering your approach. However, shorter tenures are the norm in sectors such as retail or hospitality. If you’re a younger company, there may not be enough history to draw clear conclusions. Instead, monitor your other metrics—turnover, absenteeism, retention—and circle back to this if they teeter in the red zone.

5. Time Since Last Promotion

Time since last promotion is one of those quiet metrics that says a lot if you’re paying attention. It helps you track how long it’s been since each employee moved up and whether they’re due for a promotion or development conversation. This matters, especially when lack of growth is why people leave their jobs.

Use this metric to monitor your top performers and ensure they receive the support they need to level up. It also highlights those who haven’t advanced in a while. If someone hasn’t been promoted in two or three years, review their performance, ensuring you’re documenting any employee performance issues that may be impacting their advancement.

From Numbers to Insight

It takes more than one metric to get the complete picture of what’s happening within your organization. Each metric offers a piece of the story, and when combined, they reveal what your employees are experiencing daily. These numbers are more than just data points on a dashboard. They act as signals.

Metrics highlight what’s working, what needs attention, and where you have room to grow. When you read them in context, you’re not simply tracking performance. You’re uncovering opportunities to build a stronger, more supportive workplace.

How Justworks Makes Tracking HR KPIs Easier

Tracking HR KPIs (Key Performance Indicators) is essential for measuring their effectiveness and aligning them with organizational goals. By monitoring key metrics like employee turnover, engagement, and retention on the HR KPI dashboard, small businesses can identify areas for improvement and make data-driven decisions to enhance workforce performance.

Justworks' Professional Employer Organization (PEO) helps by providing advanced HR tools and analytics. It allows small businesses to track HR metrics efficiently while ensuring compliance with labor laws and regulations. Ready to turn insight into impact and build a workplace where people thrive? Get started with Justworks today.