How to Use HR Metrics to Improve Hiring and Retention in 2026
December 29th, 2025 | 6 min. read
By Tara Larson
You’ve calculated your turnover rate. You know how long it takes to fill a position. You even know what hiring costs you.
So now what?
Most small business owners track HR metrics because someone told them they should. But once the numbers are in a spreadsheet, they stare back at you with zero context and zero direction. You're left thinking: “Cool. Now what am I supposed to do with this?”
A spreadsheet full of data just identifies your hiring problems, it doesn’t solve them.
At Whirks, we’ve worked with hundreds of small businesses who were stuck in this exact spot, collecting numbers that weren’t driving decisions.
In this article, we’ll show you how to actually use the HR metrics you’re tracking to ask the right questions, set meaningful goals, and make real changes that stick.
Tracking data is easy. Making it useful is where the work (and the payoff) really begins.
If you haven’t read our first article, “5 HR Metrics That Show Where Your Business Is Losing People and Profit,” start there. It explains what to track and how to calculate each number. This article will show you what to do once you have them.
Why HR Metrics Don’t Matter Unless You Use Them
In most small businesses, someone (maybe you, maybe your HR person, maybe your accountant) starts tracking HR metrics. They build a spreadsheet. They calculate the numbers every month. They might even put them in a nice chart.
And then...nothing changes.
Turnover stays high, hiring still takes forever, and the same roles sit open for months.
This is actually worse than not tracking anything because now you're spending time and energy on data collection and still dealing with the same people problems. You've added a task without adding value.
In order to experience the benefits of tracking HR metrics, you have to take action. You have to use them.
Every number you track should lead to a question.
Every question should lead to an experiment.
And every experiment should teach you something that helps you improve.
5 Steps to Turn Your HR Metrics Into Action
HR metrics only matter if they lead to better decisions. The goal here is to gain visibility into hiring, retention, and team performance.
The steps below will walk you through exactly how to move from numbers to action. You’ll learn how to read what your metrics are telling you, set smart goals, and start making changes that actually stick.
Step 1: Start with Your Baseline
Before you can improve anything, you need to know where you’re starting. That’s your baseline—the raw number that give you a snapshot of how things are working right now.
Pull your HR metrics for the past 12 months:
- What was your turnover rate?
- How long did it take to fill positions?
- What did hiring cost you?
- How many offers were accepted vs. declined?
- Did your new hires perform well in their first year?
Write these numbers down; they aren’t good or bad. They're just facts about where you're starting. And facts are the foundation for better decisions.
Don't skip this step or "guesstimate" the numbers. Your baseline is what you'll measure against, so accuracy matters.
Step 2: Compare to the Right Benchmarks
Now that you know your numbers, you need to put them in context. Are your metrics normal, or are they way off?
This is where a lot of small businesses go wrong. They compare themselves to the wrong companies.
A restaurant shouldn’t compare its turnover to a law firm. A contractor in Little Rock shouldn’t benchmark against a tech startup in San Francisco.
You need industry-specific and location-specific benchmarks. These often come from trade associations, industry publications and reports, and local business groups.
Once you have the right comparisons, you can see where you're falling short:
- If your turnover is 40% and the industry average is 25%, you have a problem.
- If your time-to-fill is 60 days but others fill roles 35, that’s costing you.
- If your offer acceptance rate is 65% when it should be 85%, you’re losing good candidates.
Benchmarks turn your metrics into decisions. They show you where to focus, and what’s worth fixing.
Step 3: Pick One Metric to Improve
Don't try to fix everything at once. That’s the fastest path to burnout, not progress.
Look at your metrics and find the one that’s causing the most pain or is the furthest from your benchmark. That's your focus for the next quarter.
Maybe your turnover rate is twice the industry average.
Maybe your time-to-fill is so long that you're losing good candidates.
Maybe your offer acceptance rate is embarrassingly low.
Pick one metric, set one goal, and commit to one timeframe.
For example:
- "Reduce turnover from 40% to 30% in the next six months."
- "Cut time-to-fill for hourly roles from 60 days to 35 days by Q2."
- "Improve offer acceptance rate from 65% to 80% by year-end."
One goal with one metric leads to real improvement.
Step 4: Ask Why Before You Act
Once you’ve picked a metric to improve, don’t rush straight into fixing it. That’s how businesses waste money solving the wrong problem.
Take turnover, for example. You might assume people are quitting because of pay, so you give everyone a raise. But if the real issue is poor management or no growth path, you’ve just spent more money to change nothing.
Before you act, ask why the metric looks the way it does.
If your turnover is high, ask:
- Are people leaving voluntarily or are we terminating them?
- Is turnover concentrated in one department or under one manager?
- When are people leaving (during onboarding, after a year, another pattern)?
- What do exit interviews tell us about why people leave?
If your time-to-fill is long, ask:
- Where in the process are we getting stuck?
- Are we getting enough applicants or struggling to find qualified candidates?
- Is our interview process too slow or complicated?
- Are we being too picky or unrealistic about requirements?
If your offer acceptance rate is low, ask:
- What reasons do candidates give for declining?
- Are we losing people to specific competitors?
- Is our compensation competitive for our market?
- Are we taking too long to make offers?
The numbers show you the symptoms, but the “why” reveals the cause. Knowing the “why” helps you understand the problem, and that’s something you can fix.
Step 5: Run Experiments and Adjust
Once you’ve asked the right questions, it’s time to test the answers. Start small, move fast, and learn as you go.
You don’t need to launch company-wide initiatives or write a 40-page strategy. You just need to try one thing, see what happens, and make adjustments based on what you learn.
Every metric should lead to an experiment, and every experiment should lead to insight.
Here are some experiment examples:
- Turnover too high?
→ Interview employees who stayed and ask why. Then, do more of that. - Time-to-fill dragging?
→ Map your hiring process, find the bottleneck, and eliminate one delay. - Offer acceptance too low?
→ Survey candidates who declined. What tipped them toward someone else? - Cost-per-hire too high?
→ Compare hiring sources. Are job boards bleeding your budget while referrals convert better?
Just knowing more doesn’t lead to improvement. You have to do something differently.
Try one thing this month. Track the result. And then try something else. That’s how you build a data-driven HR process: one smart experiment at a time.
Build Your 2026 HR Plan with Metrics That Matter
Now that you know how to track and act on your HR metrics, it’s time to build a simple, focused plan for the year ahead.
Here’s a quarter-by-quarter roadmap you can actually follow:
January: Review and Reset
- Pull your 2025 HR data for the five core metrics.
- Compare each one to your industry benchmarks.
- Identify your biggest gap, and that’s your Q1 priority.
February-March: Investigate and Experiment
- Ask “why” your priority metric is off track.
- Interview employees, review processes, and dig into patterns.
- Design one to two small experiments and implement them.
April-June: Measure and Adjust
- Track your target metric monthly.
- If things are improving, keep going.
- If not, tweak your approach or try a new experiment.
July-September: Expand and Scale
- Choose a second metric to improve.
- Apply the same process: baseline, question, experiment, track.
- Involve your team in what’s working.
October-December: Review and Plan Ahead
- Compare your year-end metrics to where you started.
- Celebrate the wins, and document what didn’t work.
- Set realistic, specific goals for 2027.
This isn’t a complicated strategy. It’s just consistent, data-driven leadership where you take one metric, one goal, and one quarter at a time.
Moving From Metrics to Real Results
The specific metrics you track matter, but the habit of using data to make decisions matters more.
You could focus on entirely different numbers and still build a stronger business if you use those numbers to ask better questions, test smart changes, and adjust as you learn.
You now know how to track the right HR metrics. And if you missed it, go back and read “5 HR Metrics Every Small Business Should Track,” to get your baseline right before setting your next goal.
A lot of small businesses track numbers with the best intentions, but never connect them to actual decisions. That changes today.
Start small. Pick one metric, set one goal, and run one experiment.
Track your results for 90 days. See what happens, and adjust from there.
Three months from now, you’ll have real data showing what worked.
A year from now, you’ll have a system for continuous improvement that makes every hire smarter and every dollar better spent.
At Whirks, we help small businesses turn HR guesswork into confident decision-making.
Our People Services team can help you track the right metrics, interpret the results, and build systems that actually make hiring and retention easier.
Are you ready to stop collecting data and start making changes?
Check out “3 Steps to Hiring the Ideal Team Player” to improve your quality of hire, or reach out to our team to talk about your biggest HR challenges heading into 2026.