Human resources management relies on real-time performance monitoring and measurement. HR indicators (KPIs) help assess managerial effectiveness, support strategic decision-making, and strengthen your employer brand.
Looking for the most effective indicators to develop and empower your workforce? Klara breaks down the essential KPIs that support the strategic management of your talent’s skills development.
Understanding HR indicators and their strategic importance
Did you know that 69% of companies manage their skills processes based on semi-annual or annual performance reviews? Yet 45% of managers feel these practices add no real value. Key performance indicators enable real-time evaluation – which is precisely why they matter.
Key Performance Indicators (KPIs) include all quantifiable measurement tools that help analyse business outcomes. They provide a valuable data foundation to evaluate training, fine-tune recruitment campaigns, and optimise internal mobility.
KPI analysis reflects the actions implemented by the HR function.
Why are HR indicators crucial for strategic decision-making?
Skill-focused KPIs provide tangible, objective data.
In the context of knowledge transfer in the industrial sector, for example, HR indicators enhance recruitment and onboarding processes for field staff. You can visualise all the issues and barriers to informal skills acquisition via a dashboard, making it easier to implement targeted improvement measures.
Key KPIs for managing skills development
Choosing the right HR indicators is the foundation for strategically managing your workforce’s skills development. The goal? To measure follow-up, engagement, individual progress, and overall upskilling across your organisation.
HR indicators for talent retention
Employee turnover rate provides valuable insight into workforce engagement. It represents the percentage of employees who leave the organisation over a given period. Analysing this indicator can highlight a lack of professional development opportunities, issues in skills management, or a weak emphasis on company culture.
Internal promotion KPIs
These key indicators measure how effectively you identify, train, and promote your talent. We recommend including the internal promotion rate in your dashboard — it offers a clearer view of how many employees are moving into more senior roles.
Measure the average time to achieve an internal promotion to help fine-tune the efficiency of your talent identification and recognition process.
Internal mobility KPIs
HR indicators related to career pathways assess your organisation’s ability to offer development and growth opportunities to its talent.
Include the internal mobility rate in your analytics tools. It allows you to assess how flexibly and effectively you align employee aspirations with internal business needs. In doing so, you’ll also enhance quality of work life, satisfaction levels, and team retention.
The success rate of internal applications provides insight into the percentage of employees who secure the roles they apply for. It reflects the effectiveness of your internal selection process.
The KPIs that boost your HR performance
These KPIs measure the real impact of your organisation’s continuous learning process.
The TMTL indicator (Time Mobilise To Learning) provides a clear view of the time needed to acquire and apply a new skill.It can highlight the need for validation steps, reminders, or further support with the employee undergoing training.
This KPI helps assess how relevant each training course is and the speed at which your talent develops new skills. It reveals weaknesses in the learning programme and supports the development of a stronger culture of experimentation within your team.
The TTA indicator (Time to Autonomy) analyses the time required to reach operational autonomy following training. It gives you a clear view of when a trained employee can begin applying their skills in real work situations without constant supervision.
This KPI enhances the post-training follow-up process and helps identify gaps between individuals or teams.
Transform skills development through HR indicators
Klara provides all the tools you need to populate your HR dashboard with the right KPIs. Our solution makes it easier to contextualise indicators, interpret data, and implement the right action plan.
Digital tools to support effective KPI management
Managers spend an average of 210 hours each year on performance management tasks. This time-consuming activity can be automated with a skills tracking tool like Klara.
Analysing TMTL and TTA HR indicators streamlines onboarding and supports smoother adaptation to new tools across your organisation. By integrating them into our real-time tracking system, you can set clearer upskilling targets and improve team performance evaluations. Monitor these KPIs in real time and capture constructive employee feedback directly through the platform.
Klara’s data visualisation tools include the skills framework, along with tracking for coaching, continuous learning, and mentoring activities.
Implementing HR indicators: key watchpoints
Business leaders operate within three key paradigms: responding quickly in emergencies, accurately analysing the current situation, and anticipating the near future. Ensure your KPIs are aligned with all three areas:
- HR alert indicators
- Operational KPIs
- Forward-looking indicators
Too many KPIs can reduce the effectiveness of skills development management. You also lose valuable analysis time without improving decision-making. We therefore recommend focusing on actionable indicators that align with the short-term objectives of the HR function to ensure a more efficient process.
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