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

It's a new reality. In a growing number of companies, the HRD and the CFO present results together, using a dashboard that crosses financial and human resources data.

The turnover is no longer an abstract percentage but a quantified impact on the bottom line. Training is no longer an expense but an investment with documented ROI. Absenteeism is no longer an inevitability but an anticipated and managed risk. This guide presents 7 KPIs that help build this common language and boost talent management.

KPI 1: the cost of turnover

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

The real financial impact

In Switzerland, average turnover – around 11% for an employee on an open-ended contract – costs between 50% of the annual salary for a junior profile and 100% for a senior, expert, or executive 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 (drop in productivity, skill acquisition).

Internal vs. external trade-off

Internal recruitment is 25% to 50% cheaper 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 executive, +24% for a legal role, according to the 2025 Michael Page Switzerland barometer.

2025 Trend: AI accelerates the process

In the United States, HRDs are already using AI to optimize recruitment. According to a McKinsey study, predictive analytics reduces recruitment time by 50%.

KPI 2: departures at risk

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

Anticipate rather than react

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 medium-sized companies thanks to simplified methodologies.

A KPI accessible to everyone

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

Practical case

A Lausanne-based fiduciary firm of 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, certified training, motivating projects, team reorganizations. 

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

KPI 3: training ROI

Calculating training ROI demonstrates 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 years and an activity rate of 77.8% for 55-64 year olds, training maintains employability in the face of skills obsolescence.

Calculation methodology

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

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

Onboarding: the other indirect benefit

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

Let's take the example of a Basel-based pharmaceutical company: a technician reaches 100% productivity in 70 days in 2025, compared to 110 days in 2023. Across 12 recruitments per year, the gain is CHF 180,000 for an investment of CHF 35,000.

KPI 4: absenteeism and its prevention

Monitor 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% including accidents. For an SME of 150 people with an average salary of CHF 80,000, 5% absenteeism represents 1,950 days of absence, totaling CHF 1,563,900.

Predictive approach: Predictive Health Analytics

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

Practical case

A Swiss Romandie company faces an absenteeism rate of 7.2%. It sets up anonymous monthly surveys with 5 questions on perceived workload, stress, sleep quality, physical pain, and feelings of exhaustion.

If a team shows a degraded score for 2 consecutive months, actions are taken: temporary reorganization, stress management training, adaptation of objectives, voluntary individual coaching. Access to a telemedicine and psychological support platform allows going even further. All these actions help to reduce absenteeism in a targeted manner.

KPI 5: human capital profitability

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

Two efficiency indicators

Two ratios are needed to measure human capital profitability. Together, they provide a complete picture impossible to obtain with a single indicator.

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

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

Practical case: identifying the right lever for action

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

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

• 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/employee increases from CHF 233,000 to CHF 268,000. The Payroll/Revenue ratio drops to 28%, without any layoffs.

HR data and performance

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

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

KPI 6: HR efficiency

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

Methodology and comparison

The HR expenses to payroll ratio is what measures HR operational efficiency.

Practical case: targeted solutions

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

A Geneva engineering firm with 35% cross-border French workers automates time tracking based on badge swipes and Outlook calendars. 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 for HR

Employee Lifetime Value (ELV) emerges 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 how CFOs and HRDs 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 which to focus the training budget rather than distributing it evenly;

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

How to attribute revenue to an employee

A pragmatic method is to use a coefficient:

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

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

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

Roadmap

To implement the 7 KPIs, apply a 3-phase roadmap: 

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

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

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

A company's maturity is reflected in its capacity to measure. Reactive companies notice problems after the fact. Predictive ones anticipate risks up to 18 months in advance.