Why should you measure your company’s growth?

Just as other business units within a company have data relating to revenue or sales, HR should have data relating to team members and company growth. This includes HR analytics and KPIs on headcount, attrition, turnover, and terminations.

What is the difference between revenue growth rate and employee growth rate?

Employee growth rate tracks changes in the number of people working for your company—a vital HR metric that highlights hiring trends and workforce expansion. Revenue growth rate, in contrast, reflects the amount of income the company generates over time. It offers insight into sales performance and overall financial health.

What are the limitations of company growth rate metrics?

Understanding growth rates is helpful, but they don’t tell the full story. One of the most significant factors to consider is the impact of seasonal trends. Many industries experience predictable fluctuations in hiring and revenue. For example, retail businesses often see spikes in hiring during the holiday season, which can temporarily inflate growth rates.

What is a normal growth rate for a company?

There’s no one-size-fits-all answer to what constitutes a “normal” growth rate. It depends on factors like your industry, company size, age, and the economic environment. For instance, startups often experience rapid growth in their early years, while more established companies may grow at a steadier, more sustainable pace.