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Module 4 · Lesson

HR data basics

Two kinds of data

TypeWhat it isHR examplesWhat it answers
QuantitativeNumbers you can count or measure.Headcount, exits, days to fill a vacancy, survey ratings, absence days.How much? How many? Is it rising?
QualitativeWords and observations.Open survey comments, exit interview notes, focus group notes.Why? What is it like?

The strongest HR stories use both: numbers show the size of an issue, and words explain it.

Core HR metrics and how to calculate them

MetricFormulaNotes
Turnover rateSeparations in the period ÷ average headcount in the period × 100Often split into voluntary (resignations) and involuntary (dismissals, redundancies).
Retention rateEmployees present at the start who are still present at the end ÷ employees at the start × 100Not simply 100 minus turnover, because turnover also counts people hired and lost within the period.
New-hire turnoverNew hires who leave within a set time (often 90 days or 12 months) ÷ new hires × 100A direct measure of hiring and onboarding quality.
Time to fillDays from approval of the opening to acceptance of an offerDefinitions vary; state yours.
MetricFormulaNotes
Cost per hire(Internal + external recruiting costs) ÷ hiresInclude advertising, agency fees, recruiter time.
Absence rateDays absent ÷ available working days × 100
Favourable scoreRespondents choosing the top two options on a five- point agreement scale ÷ all respondents × 100The usual way to report engagement survey items.
eNPS% promoters (9 to 10) − % detractors (0 to 6) on “How likely are you to recommend us as a place to work?”Ranges from −100 to +100. Passives (7 to 8) count in the total but not in either group.
Survey response rateResponses ÷ people invited × 100A low rate limits what you can conclude.

Seven ideas that prevent most mistakes

IdeaWhy it matters
Rates need denominators.“30 people left” means little without knowing how many people there were. Always ask “out of how many?”
Mean and median differ.The mean (average) is pulled by extreme values. The median (middle value) is often fairer for pay and time-to-fill.
Do not average averages.Departments differ in size. A company-wide figure must be calculated from totals, or weighted by group size. The worked example below shows the error.
Small groups are unreliable and identifiable.One person changes a team of five by 20 points, and results for small groups can reveal who said what. Set a minimum group size (commonly 5 to 10) below which you do not report.
Correlation is not causation.If low engagement and high turnover appear together, one may cause the other, or both may be caused by something else. Say “is associated with” unless you have stronger evidence.
One point is not a trend.Compare with previous periods before calling something a rise or fall.
Who did not answer matters.If only 50% of a department responded, the least engaged may be the missing half.

The practice dataset (fictional) Brightwater Logistics, financial year 2026. Use this for the exercises.

DepartmentAverage headcountSurvey responsesFavourable engagementExits in yearAverage time to fill (days)
Warehouse Operations20012058%7641
Customer Support806471%1833
DepartmentAverage headcountSurvey responsesFavourable engagementExits in yearAverage time to fill (days)
Transportation603062%1647
Corporate605480%652
Total400268116

Worked example: the averaging trap. Company turnover is total exits divided by total headcount: 116 ÷ 400 = 29.0%. If you instead average the four departmental rates (38.0%, 22.5%, 26.7% and 10.0%), you get 24.3%, which understates the problem by nearly five points because it gives the 60-person Corporate team the same weight as the 200-person warehouse. The same applies to engagement: weighting by responses gives 66.0% favourable; a simple average gives 67.8%.

Jot down key ideas in your own words. Saves automatically.