HR in Numbers: Must-track KPIs for 2025

Let's be honest—HR leaders and managers often struggle to prioritize HR-centric KPIs. It’s easy to focus on the "soft stuff" and overlook clear metrics. But effective HR isn't just about the good feelings; it's the backbone of a thriving business. This is especially true in Nordic companies, where employee well-being, sustainability, and creating safe, inclusive workplaces are top priorities.

This blog is meant as a quick and practical overview of KPIs that genuinely reflect the values and goals of HR in Sweden, Norway, Denmark, and Finland today, as well as a way to quantify the value your HR role brings to the table. 

Why is it important to measure stuff?

You already know this, but Nordic companies stand out because we focus on people first. We value flat structures, strong unions, diversity, psychological safety, and hybrid work. These aren’t just nice ideas; they're the foundation of how we work every day. But this doesn't come easy. It requires hard work and sometimes we have to measure stuff too😅 

Classic KPIs you should still track

Some KPIs are classics for a reason—they're still incredibly useful:

1. Time-to-Hire

• What: How quickly you fill open positions.
• Why it matters: It shows how efficient your recruitment is.
• Measure it: Count the days from posting a job to making an offer.
• Nordic goal: Less than 30 days is great.

2. Employee Turnover Rate

• What: How many people leave your company.
• Why it matters: High turnover can mean trouble with culture or engagement.
• Measure it: (Number of people leaving ÷ average number of employees) × 100.
• Nordic goal: Aim for under 10% annually.

3. Absenteeism Rate  (Short-term vs. Long-term)

• What: How often employees miss work, separated into short-term (<14 days) and long-term (14+ days).
• Why it matters: High short-term absences may indicate low morale; high long-term absences might point to burnout or health management issues.
• Measure it: (Days absent ÷ total working days) × 100, tracked separately.
• Nordic goal: Short-term <6%, Long-term <3%.

4. Cost Per Hire

• What: How much it costs to hire someone new.
• Why it matters: Helps you manage your recruitment budget wisely.
• Measure it: Recruitment costs ÷ number of hires.
• Nordic goal: Between €30.000-50.000, depending on the role.

KPIs you should consider in 2025

In 2025, HR is evolving, and some KPIs are becoming essential. Here are my top 10 KPIs:

1. Employee Net Promoter Score (eNPS)

• What: Would your employees recommend your company to friends?
• Why it matters: Happy employees create better workplaces. 
• Measure it: Simple surveys, scale 0–10. (Don't overcomplicate things. This is quick and proven!)
• Nordic goal: Scores above 30 are good. Scores over 50 are fantastic!

2. Manager Effectiveness Index

• What: How well your managers support and lead their teams.
• Why it matters: Good managers are essential in flat organizations. Don't just measure your people. Measure yourself!
• Measure it: Regular short surveys asking about manager clarity and support.
• Nordic goal: Aim for over 80% positive responses.

3. DEI (Diversity, Equity & Inclusion) Score

• What: How inclusive your workplace really is.
• Why it matters: Inclusion drives innovation and happiness
• Measure it: Employee surveys about belonging and fairness.
• Nordic goal: 85% or higher is a great benchmark.

4. Internal Mobility Rate

• What: How often you promote or move people internally.
• Why it matters: Helps retain talent by showing growth opportunities.
• Measure it: (Internal hires ÷ total hires) × 100.
• Nordic goal: Around 20% is healthy.

5. Psychological Safety Score

• What: Do your people feel safe speaking up?
• Why it matters: Encourages innovation and openness.
• Measure it: Short surveys checking comfort with openness.
• Nordic goal: Above 90% positive feedback.

6. Sustainability-Linked HR Metrics

• What: How employees adopt green practices at work.
• Why it matters: Important for sustainability-focused Nordic companies. (it shouldn't just be about whether or not you recycle your coke cans😜)
• Measure it: Track how many choose sustainable benefits (like cycling to work).
• Nordic goal: At least 60% adoption.

7. Remote Work Productivity Metrics

• What: Checking productivity and happiness of remote teams.
• Why it matters: Hybrid work is standard, and productivity shouldn't suffer.
• Measure it: Task completion and regular feedback surveys.
• Nordic goal: Same productivity at home as in-office.

8. Span of Control

• What: Number of direct reports per manager.
• Why it matters: A balanced span ensures effective leadership and support.
• Measure it: Average number of employees reporting to each manager.
• Nordic goal: Typically, 8–12 direct reports per manager.

9. Personnel Costs as % of Total Cost Base

• What: Portion of total costs spent on personnel.
• Why it matters: People are your biggest asset—and often your biggest expense. This KPI shows how people-intensive your business is and helps track efficiency over time.
• Measure it: (Personnel costs ÷ Total operating costs) × 100. Track quarterly or annually.
• Nordic goal: 40–60% in service and knowledge sectors. Rising ratio? Check for productivity or structure issues.

10. Employee Engagement Score

• What: Employee commitment, motivation, and connection.
• Why it matters: Engaged teams perform better, stay longer, and foster healthier cultures. It’s a leading indicator of performance and retention.
• Measure it: Pulse or annual surveys (scale 1–5 or 1–7). Use a consistent set of questions—then calculate the average or % of "engaged" responses.
• Nordic goal: Above 4 (out of 5) is strong; 4.3+ is excellent. Under 3.5? Dig deeper.

Quick KPI Reference Table

Keep your HR KPIs close, but your people closer

The right KPIs help you make smarter, faster decisions. But it is also your safety net for showing value in your work and the systems you work with. Regularly check your metrics and adapt them as your company. But remember, good HR isn't just about numbers—it's about people. And in the Nordics, we put people first, always. (Just don't forget the numbers when you start your work)