🚀 Building a People & Culture KPI Framework That Drives Impact
In many organizations, People & Culture KPIs get reduced to just turnover or headcount. But culture is more than a number — it’s the lived experience of employees.
To measure it meaningfully, HR leaders need a structured KPI framework. Here’s how you can build one 👇
🔑 Step 1: Define the Core Dimensions
People & Culture KPIs typically fall into 5 categories:
Engagement & Belonging → eNPS, pulse survey scores, recognition participation.
Culture & Values in Action → % of employees who feel company values are lived, psychological safety index.
Diversity, Equity & Inclusion (DEI) → representation ratios, promotion rates by demographic, pay equity.
Talent Flow → voluntary turnover, internal mobility, new hire retention.
Growth & Well-being → L&D participation, skill progression, well-being/burnout indicators.
🔑 Step 2: Combine Input + Behavioral Data
Employee input → surveys, focus groups, eNPS.
System data → HRIS (attrition, promotions), learning tools (training hours), recognition/mentorship platforms (participation).
📊 Example: Gallup found that highly engaged teams show 23% higher profitability and 18% lower turnover.
🔑 Step 3: Align with Business Goals
Ask: “How do people outcomes connect to our strategy?”
If innovation is a priority → measure collaboration & cross-functional recognition.
If retention is key → measure new hire retention, career progression pathways.
🔑 Step 4: Set Baselines & Targets
Use HR tech benchmarks (Workday, SuccessFactors, Dayforce) for hard data.
Use culture platforms (like Paddo) for engagement, recognition, mentorship benchmarks.
🎯 Example: Aim to increase peer recognition participation by 30% in 6 months.
🔑 Step 5: Review & Adapt Quarterly
Culture shifts fast — don’t wait a year.
Pulse surveys + real-time behavioral data give you leading indicators.
✅ Takeaway: People & Culture KPIs aren’t just about measuring — they’re about building a feedback loop between employees and leadership. When surveys + behavioral signals work together, you get a true picture of culture.
👉 While building a KPI framework gives you the foundation, numbers alone don’t shift culture. The real magic happens when you pair these KPIs with programs that create continuous feedback loops — from mentoring to recognition to well-being. In my next post, “🌟 Beyond Turnover: 5 People & Culture Programs to Capture Richer Insights,” I’ll share practical initiatives HR leaders can launch to go deeper than retention stats and unlock the people data that really matters.
