7 HR indicators that transform the dialogue between HR directors and CFOs

This is a new reality. In a growing number of companies, the HR Director and the CFO present results together with a dashboard combining financial and human data.

Turnover is no longer an abstract percentage but a quantified impact on results. Training is no longer an expense but an investment with documented ROI. Absenteeism is no longer inevitable but a risk that is anticipated and managed. This guide presents 7 KPIs that make it possible to build this common language and boost talent management.

KPI 1: the cost of turnover

Tracking this KPI makes it possible to anticipate budget impacts and justify retention investments.

The real financial impact

In Switzerland, average turnover - around 11% for an employee on a permanent contract - costs between 50% of annual salary for a junior profile and 100% for a senior, expert, or management position. For a Swiss company with 200 employees, 22 departures therefore represent between CHF 924,000 and 3,718,000 in direct costs (recruitment, onboarding) and indirect costs (lower productivity, upskilling).

Internal vs external trade-off

Internal recruitment costs 25% to 50% less than external recruitment. In Switzerland, where unemployment is low, external recruitment forces companies to align with market salaries: +11% in one year for an accountant, +18% for a sales manager, +24% for a legal role, according to the 2025 Michael Page Switzerland barometer.

2025 trend: AI speeds up the process

In the United States, HR Directors are already using AI to optimize recruitment. According to a McKinsey study, predictive analytics reduce hiring time by 50%.

KPI 2: at-risk departures

Identifying departures 6 months in advance makes it possible to optimize retention budgets to keep talent.

Anticipate rather than suffer

The Flight Risk Score identifies employees at high risk of leaving 3 to 6 months before their decision. Already used by HP and IBM, these tools are also accessible to mid-sized companies thanks to simplified methodologies.

A KPI accessible to all

The basic level requires a quarterly scoring grid crossing 6 variables: tenure, salary gap with the market, performance trend, absenteeism, training participation, manager feedback. Each variable receives a score from 0 to 3 (total out of 18). The alert threshold is 8, with immediate action above 10.

Case study

A Lausanne-based fiduciary firm with 85 people (average salary CHF 92,000, turnover 13%) identifies 14 employees in the critical zone (score > 10). 

It invests CHF 180,000 to retain its talent: salary increases, certification training, motivating projects, team reorganizations. 

Result: 10 of the 14 at-risk employees stayed.

KPI 3: training ROI

Calculating training ROI demonstrates the direct contribution to results and retention.

From cost to investment

CFOs often see training as a cost. In Switzerland, with an average age of 42.3 and an activity rate among 55-64-year-olds of 77.8%, training maintains employability in the face of skills obsolescence.

Calculation methodology

Calculating training ROI consists of comparing trained and untrained employees. Several data points are possible: errors, turnover, customer satisfaction.

Three principles make the KPI reliable: set objectives before training, measure progress before and after, and track over a sufficient period of 6 to 12 months.

Onboarding: the other indirect benefit

Companies with a strong training culture reduce their turnover by 31%, according to a Deloitte study. In the e-commerce sector, successful onboarding reduces the time needed to reach 100% productivity by 30 to 40%.

Take the example of a pharmaceutical company in Basel: a technician reaches 100% productivity in 70 days in 2025, compared with 110 days in 2023. Over 12 hires per year, the gain is CHF 180,000 for an investment of CHF 35,000.

KPI 4: absenteeism and its prevention

Manage absenteeism to identify hidden costs and implement prevention.

The hidden costs of absenteeism

Salary continuation represents only one-third of the cost of absenteeism. The other two-thirds are temporary replacement and loss of productivity. In Switzerland, the absenteeism rate is 5%, accidents included. For an SME of 150 people with an average salary of CHF 80,000, 5% absenteeism represents 1,950 days of absence, for a total of CHF 1,563,900.

Predictive approach: Predictive Health Analytics

Gartner identifies loneliness as a critical business risk. Deloitte reveals that 46% of Gen Z and 39% of millennials are in a state of constant stress. These weak signals can be detected with quick surveys or pattern analysis.

Case study

A company in French-speaking Switzerland faces an absenteeism rate of 7.2%. It implements anonymous monthly surveys with 5 questions on perceived workload, stress, sleep quality, physical pain, and feelings of exhaustion.

If a team shows a deteriorated score for 2 consecutive months, actions are taken: temporary reorganization, stress-management training, adjustment of goals, voluntary individual coaching. Access to a telemedicine and psychological support platform makes it possible to go further. All these actions help to reduce absenteeism in a targeted way.

KPI 5: the profitability of human capital

Identify optimization levers that are not visible through financial ratios. The CFO can have KPIs by department, by product, by client.

Two efficiency indicators

Two ratios are necessary to measure the profitability of human capital. Together, they provide a complete view impossible to obtain with a single indicator.

• Revenue/employee: revenue per employee measures average productivity;

• Payroll/Revenue: payroll as a share of revenue measures the weight of salaries on activity.

Case study: identify the right lever

A Neuchâtel-based industrial company with 180 employees generates CHF 42,000,000 in revenue with a payroll of CHF 13,500,000.

• Payroll/Revenue: 32% (industry standards met);

• Revenue/employee: CHF 233,000 (below sector standards).

A single ratio detects a productivity problem. The company invests CHF 1,200,000 in automation and operator training. In 18 months, revenue per employee rises from CHF 233,000 to CHF 268,000. The Payroll/Revenue ratio falls to 28%, with no layoffs.

HR data and performance

Companies that use HR data increase their productivity by 25% compared with those that rely on managers' experience and intuition, according to a McKinsey study.

A CFO can derive several benefits from this: better hiring fit, higher training ROI, better-accepted reorganization, retention of critical talent.

KPI 6: HR efficiency

Measure the share of the HR budget allocated to administrative work compared with strategic missions.

Methodology and comparison

It is the ratio of HR expenses to payroll that makes it possible to measure HR operational efficiency.

Case study: targeted solutions

A watchmaking group has a ratio of 2.4%. Six months before the retirement of 2 HR managers, it invests in an integrated HRIS. A third HR employee is reassigned to recruitment. Result: the group reduced its ratio to 1.5%.

An engineering company in Geneva with 35% French cross-border commuters automates time management based on badge swipes and the Outlook calendar. It frees up 15 hours/week of administrative time.

KPI 7: Employee Lifetime Value

Quantify the value created by each employee to turn HR decisions into financial trade-offs.

A marketing KPI adapted to HR

Employee Lifetime Value (ELV) is emerging as the most strategic KPI for a CFO: it measures the value created by an employee from arrival to departure.

• Value created = average revenue generated × length of employment (years);

• Costs invested = hiring + cumulative training + total payroll.

Replacing intuitive trade-offs

ELV transforms the way the CFO and HR Director approach talent investment decisions by quantifying trade-offs that were previously intuitive:

• Retention: calculate whether it is better to offer CHF 50,000 to a resigning employee or invest CHF 150,000 to replace them;

• Training: identify high-potential profiles on whom to concentrate the training budget rather than spreading it evenly;

• Management: quantify the loss of value if a manager leaves in 6 months rather than 3 years.

How to assign revenue to the employee

A pragmatic method consists of using a coefficient:

• Operational roles (sales, client project manager, consultant): assign 30% of revenue to the individual employee, 70% to the collective;

• Support roles (HR, accounting, internal IT): assign 10% to the individual employee, 90% to the collective.

To be reliable, ELV must be combined with other KPIs. It has become a key tool in the CFO-HR Director relationship by translating HR actions into the language of value creation.

Roadmap

To implement the 7 KPIs, apply a roadmap in 3 phases :

• Quick wins (3-6 months): turnover, human capital, absenteeism;

• Structuring (6-12 months): training, HR efficiency;

• Sophistication (12-24 months): at-risk departures, ELV, real-time tracking.

A company's maturity can be read in its ability to measure. Reactive companies identify problems after the fact. Predictive companies anticipate risks up to 18 months in advance.