People matter. Metrics simply make their progress visible. For small and mid-sized businesses, the right HR KPIs do more than fill a dashboard, they protect compliance, reduce costs, and help people do their best work. Below are the metrics that matter most, how to calculate them, what “good” looks like, and how to take action with a tech-plus-human approach that fits an SMB reality. (That human support is our hallmark—no call centers, just a dedicated rep who knows your business. )
Hiring & Onboarding
Time to Fill
- What it is: Calendar days from job posting to accepted offer.
- Why it matters: Long cycles increase vacancy costs and burnout on existing staff.
- Action: Pre-build job templates, centralize approvals, and track bottlenecks by stage.
Quality of Hire (first 90 days)
- Signals: New-hire attendance, training completion, early performance milestones, manager satisfaction.
- Action: Tie LMS completion to onboarding checklists and report weekly. (PeopleWorX supports LMS tracking and compliance reporting. )
Offer Acceptance Rate
- Formula: Offers accepted ÷ offers extended.
- Action: Benchmark by role; refine comp/benefits messaging and accelerate time-to-offer.
Time & Attendance
Timesheet Submission Rate
- Formula: On-time timesheets ÷ expected timesheets.
- Why it matters: Late submissions cause payroll errors and compliance risk.
- Action: Mobile punches + shift reminders; audit by team weekly. (Time & labor controls are core to PeopleWorX. )
Overtime % of Hours
- Formula: OT hours ÷ total hours.
- Action: Compare scheduled vs. actual; use scheduling to rebalance staffing before payroll run.
Labor Allocation Accuracy
- What it is: % of hours correctly tagged to jobs/clients/programs.
- Why it matters: Costing, billing, and state audits.
- Action: Require allocations at punch; export to GL. (Client-ID time allocations + GL integration are proven in production for nonprofits. )
Payroll & Compliance
First-Pass Payroll Accuracy
- Formula: Payrolls needing zero corrections ÷ total payrolls.
- Action: Pre-process audits for missing punches, garnishments, and tax code changes.
- Why PeopleWorX: Dedicated reps + automated tax filing reduce rework and risk, including multi-state setups.
Pay On-Time Rate
- What it is: % of cycles funded and posted as scheduled.
- Action: Lock submission deadlines; enable direct deposit and pay cards. (Core payroll + pay options are built in. )
Compliance Case Closure Time
- Examples: ACA, PTO accruals, wage notices, prevailing wage.
- Action: Track SLA by case type; standardize workflows; keep documentation centralized. (We handle prevailing wage and multi-state confidence for SMBs. )
Learning, Safety & Readiness
Mandatory Training Completion
- Formula: Completed required courses ÷ assigned courses, by due date.
- Action: Auto-enroll; escalate overdue; require completion for shift eligibility. (LMS with certification tracking, escalation, and audit reporting supported. )
Certification Currency
- What it is: % of active employees with valid credentials.
- Action: 30-/7-day reminders; tie to scheduling eligibility. (Certification tracking is native. )
Engagement & Retention
90-Day Retention
- Why it matters: Early attrition is expensive; it’s also a quality-of-hire signal.
- Action: Run 30/60/90 check-ins; analyze trends by manager and role.
Voluntary Turnover (Trailing 12 Months)
- Formula: Voluntary exits ÷ average headcount.
- Action: Exit interviews coded by cause; fix top 2 issues quarterly.
Internal Mobility & Reviews On-Time
- Signals: % of employees with current goals/reviews; internal fills.
- Action: Quarterly goal hygiene; light-touch performance cycles in SMB-friendly cadences. (Performance and engagement tooling available. )
The SMB Advantage: Act on Metrics, Don’t Drown in Them
Dashboards don’t drive change, process plus people do. That’s why PeopleWorX pairs modern tools with a named expert who knows your org, keeps you ahead of compliance, and ensures continuity when your team changes.
Client snapshots:
• Multi-state trades company simplified prevailing wage & tax setups with a dedicated rep, accuracy without extra admin.
• Nonprofit with 200+ staff uses client-ID allocations, GL integration, and LMS tracking to pass audits and keep services running smoothly.
What “Good” Looks Like (Quick Benchmarks to Start)
- Time to fill: Aim for role-specific targets; reduce by 20–30% with templates + tighter approvals.
- First-pass payroll accuracy: 99%+ for steady-state cycles.
- OT % of hours: Trend toward <5–8% in stable operations; manage exceptions (seasonality, emergencies).
- Training completion: 95%+ on mandatory modules; 100% before audit dates.
- 90-day retention: Track by role; sustained improvement of 5–10 pts is realistic with better onboarding.
How to Get There (Simple, High-Leverage Plays)
- Instrument the workflow you already run. Add must-fill fields (client/job, location) where work happens, at the punch, not after. (PeopleWorX timekeeping & allocations. )
- Automate recurring compliance tasks. Tax filings, ACA, garnishments, PTO accruals. (Payroll + filings + accruals supported. )
- Close the loop with a human. A dedicated account rep turns numbers into action items and policy updates. (No ticket queues; one point of contact. )
- Review top KPIs weekly, not yearly. 20-minute stand-ups: exceptions, wins, one fix per metric.
- Share the wins. Recognize teams that improve accuracy, reduce OT, or complete training ahead of schedule. (Engagement + recognition tools available. )
Uncover Hidden HR Risk Before It Impacts Your Business
This assessment highlights where HR risk exists so leaders can manage, mitigate, or accept it. Results focus on the HR areas most likely to create employee issues, disruption, or unexpected cost.
Take Your HR Risk Assessment →Frequently Asked Questions
Q1. Which five HR metrics should an SMB start with?
A. Start with time to fill, first-pass payroll accuracy, overtime %, mandatory training completion, and 90-day retention. Together they cover cost, risk, and culture and are easy to instrument with modern HRIS + time tools. (PeopleWorX provides all five out of the box, plus a dedicated rep. )
Q2. How do I measure quality of hire without a big HR team?
A. Track early signals you already have: attendance, LMS completion, and a 90-day manager check-in. Roll them into a simple score (e.g., 3/3 = “green”). (LMS + certification tracking are built in. )
Q3. What if we’re multi-state or handle prevailing wage?
A. Make first-pass payroll accuracy and compliance case closure time priority KPIs. Ensure your provider pre-configures tax jurisdictions and supports specialized wages, and that you have a named rep for fast resolution.
Q4. We’re a nonprofit with client billing, what matters most?
A. Focus on labor allocation accuracy, training completion, and audit readiness (report turnaround time). Integrations to your GL and client-ID time capture are essential.
Q5. How does PeopleWorX help us act on the numbers?
A. By pairing a single-database platform (ATS → onboarding → time → payroll → benefits → LMS → performance) with a dedicated account rep who translates data into weekly actions and keeps you ahead of compliance.
If you need help with workforce management, please contact PeopleWorX at 240-699-0060 | 1-888-929-2729 or email us at HR@peopleworx.io
