A Glossary of HR Terminology

Glossary of Human Resources Management and Employee Benefit Terms

A Glossary of HR Terminology

Glossary of Human Resources Management and Employee Benefit Terms

HR Wordbook > Key Performance Indicators (KPI)

HR Wordbook > Key Performance Indicators (KPI)

Key Performance Indicators (KPI)

Key Performance Indicators (KPI)

What is KPI?

KPIs, or Key Performance Indicators, are a subset of KRAs. This would mean that a person’s performance would be measured based on the results shown. KPIs can be exactly measured. Following up to the previous example, a content writer’s KPI would be when a particular feature or article about their company ranks in the top 3 search results. If you offer co-working spaces, your KPI would be your space showing up in the top 3 results for something like “co-working spaces in Hyderabad”.

 

How to write KPIs?

While writing a KPI, here are some things to keep in mind:

  1. As mentioned previously, KPIs are subsets of KRAs. Once you have a KRA in place, you can get a definitive and measurable KPI.
  2. Supposed you have a KRA of bringing in the 1cr worth of revenue in a year.
  3. To achieve this, your KPI could be bringing in revenue through 60% of new business, 30% renewals, and 10% via other methods.
  4. After having a large goal, smaller goals to contribute to the achievement of the larger goal will be your KPI. Thus, your KPI depends on your KRA.

Timely reviews can help in improving an employee’s performance. The shorter the period between reviews, the better it is. Performance reviews and generally conducted on a monthly, quarterly, half-yearly, or annual basis, based on the company policy. Keeping track of every employee’s review cycle can be tricky. Managing these via email and setting reminders is time-consuming and can result in complications.

To solve this issue and make performance reviews easier, performance management systems were introduced. With a performance management system, you can automate the entire process. Review cycles can be customized and created as per policies and the requirement. These systems also provide you with feedback forms and generate reports and graphical analysis of the review.

 

The Following are KPI Examples & Benefits for all Management:

  1. KPI allows the manager as well as the Organization to measure and manage the target and goals
  2. Keeping the right set of people within the Organization who come up with the business KPI performance.
  3. Intuitive records of performing against the Goal of the Organization.
  4. KPI helps the metrics visible to everyone, such as who is performing better and who is not at all performing.
  5. When an employee comes to know that he is been measured, his behavior automatically improves towards the Performance.
  6. This Improves the decision-making skills that are entirely based on the data available through KPI.
  7. Provides a complete overview of the Progress regarding the Goal of the Organization

What is KPI?

KPIs, or Key Performance Indicators, are a subset of KRAs. This would mean that a person’s performance would be measured based on the results shown. KPIs can be exactly measured. Following up to the previous example, a content writer’s KPI would be when a particular feature or article about their company ranks in the top 3 search results. If you offer co-working spaces, your KPI would be your space showing up in the top 3 results for something like “co-working spaces in Hyderabad”.

 

How to write KPIs?

While writing a KPI, here are some things to keep in mind:

  1. As mentioned previously, KPIs are subsets of KRAs. Once you have a KRA in place, you can get a definitive and measurable KPI.
  2. Supposed you have a KRA of bringing in the 1cr worth of revenue in a year.
  3. To achieve this, your KPI could be bringing in revenue through 60% of new business, 30% renewals, and 10% via other methods.
  4. After having a large goal, smaller goals to contribute to the achievement of the larger goal will be your KPI. Thus, your KPI depends on your KRA.

Timely reviews can help in improving an employee’s performance. The shorter the period between reviews, the better it is. Performance reviews and generally conducted on a monthly, quarterly, half-yearly, or annual basis, based on the company policy. Keeping track of every employee’s review cycle can be tricky. Managing these via email and setting reminders is time-consuming and can result in complications.

To solve this issue and make performance reviews easier, performance management systems were introduced. With a performance management system, you can automate the entire process. Review cycles can be customized and created as per policies and the requirement. These systems also provide you with feedback forms and generate reports and graphical analysis of the review.

 

The Following are KPI Examples & Benefits for all Management:

  1. KPI allows the manager as well as the Organization to measure and manage the target and goals
  2. Keeping the right set of people within the Organization who come up with the business KPI performance.
  3. Intuitive records of performing against the Goal of the Organization.
  4. KPI helps the metrics visible to everyone, such as who is performing better and who is not at all performing.
  5. When an employee comes to know that he is been measured, his behavior automatically improves towards the Performance.
  6. This Improves the decision-making skills that are entirely based on the data available through KPI.
  7. Provides a complete overview of the Progress regarding the Goal of the Organization