Beyond Retention: The HR Metrics That Truly Matter in 2026

For too long, HR metrics have focused on internal activity: how many training sessions were held, how many interviews completed, how many hours logged. In part 3 of our HR Analytics series we explore how in 2026, this no longer cuts it.

As Klint Kendrick puts it: “There are a million scorecards out there, none of them particularly useful.” (Source)

The future of HR measurement doesn’t lie in tracking effort, but in quantifying impact. At Gecko HRM, we work with organisations to move from vanity metrics to strategic indicators, the ones that reflect business value, not just HR busywork. As discussed in detail at the latest HR&M breakfast, the real shift is from an “activity model” to a “value model.”

Here are the three core areas where HR must raise its measurement game.

1. Employee Sentiment as a Leading Indicator

Turnover figures are lagging indicators, they only tell you people have already left. To manage proactively, HR must monitor employee sentiment and engagement in real-time.

Key metrics:

• eNPS (Employee Net Promoter Score)
  
• Pulse survey participation and scores
  
• Sentiment analysis across teams
  

These indicators are powerful because they predict future productivity, retention, and innovation. As discussed during the HR&M session, disengagement often shows up first in behaviours such as withdrawal, passive responses, or sudden mood shifts. Systems like Gecko HRM can detect these changes early, allowing for timely intervention.

Crucially, engagement is not a “soft” metric. Research consistently shows it is tied to business outcomes. One Gallup study found companies with highly engaged employees see nearly four times the earnings-per-share growth of their competitors. (Source)

2. Measuring Culture as a Business Asset

Culture is no longer intangible. Strategic HR teams are learning how to measure the elements of culture that directly influence business outcomes, particularly in times of change or integration.

From our HR&M breakfast discussion we’ve learned the cultural KPIs that matter most:

• Psychological safety and trust
  
• Cross-functional collaboration
  
• Credibility of leadership
  
• Clarity and execution of goals
  

Katja Katarina Zakrajšek (Lofrware) noted that a breakdown in team trust or a drop in 1:1 conversations often signals deeper leadership or cultural issues. And Marko Perme (Gecko HRM) made a point that poor leadership shows up where HR has no direct control – in outcomes and broken process hygiene.

Culture can be diagnosed and optimised. Tracking these markers enables HR to act early, preventing issues that often derail transformation, innovation, or integration initiatives.

3. Financial Translation of HR Impact

The highest bar for HR is turning people data into financial language, a requirement for credibility with executive leadership. This involves reframing HR data as cost, risk, or value creation.

Examples include:

• Absenteeism cost analysis: Translating 1% absenteeism into total productivity loss or cost per employee
  
• Quality of hire: Measuring how faster onboarding or better role fit impacts revenue and training costs
  
• Leadership ROI: Linking management scores to team performance and retention
  

HR must show how its work influences pricing, margin, or investment decisions. When HR frames its work as a value generator, not a support function, it earns its seat at the table.

Let’s make HR effortless!

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Making Metrics Matter

To move from activity to impact, HR must:

• Prioritise metrics with business relevance
  
• Connect insights to financial outcomes
  
• Use technology to automate and visualise real-time KPIs
  

Success isn’t about tracking everything. It’s about tracking the right things, those that reflect the employee experience, the leadership environment, and the financial footprint of people initiatives.

As Dr. Susan Hanold once said, “What is tracked gets done.” (Source)

So the real question is: Are you tracking what matters?

To see how this approach fits into a broader people analytics strategy, explore our blog: The Strategic Power of HR Analytics. Or book a demo with Gecko HRM and discover how we turn HR data into business results.