Key Performance Indicators (KPIs)
What is a Key Performance Indicator (KPI)?
Managing employee performance and a company's day-to-day operations is difficult. Metrics are frequently used by businesses to evaluate employee performance and track progress toward specific goals. Employee performance objectives should be clear and aligned with the business strategy, as well as specifying what metrics will be used to evaluate and improve business outcomes. Individual employee Key Performance Indicators (KPIs) are metrics that can help you track your employees' ability to meet your expectations as well as their impact on business goals. (employsure, 2022)
Why are KPIs Important?
- KPIs boost employee morale
- KPIs help to support and influence business goals
- Personal development is aided by KPIs
- Performance management relies heavily on key performance indicators (KPIs)
Characteristics of a Good KPI
- Should be Specific – It must be clear what the KPI measures
- Should be Measurable – The KPI must be measurable in accordance with a predefined standard, so that the actual value can be compared to normal standard values
- Should be Achievable – Every KPI must aim for a goal that is both realistic and feasible
- Should be Relevant – The KPI must provide insight into the performance of the organization
- Should be Time phased – A KPI is only meaningful if we know the time dimension in which it is achieved
Why are KPIs important in human resources?
HR KPIs are HR metrics used to determine how HR contributes to the rest of the organization. This means that a KPI in HR measures how successful HR is at implementing the organization's HR strategy.
Choosing the Best Key Performance Indicator(s) for Your Organization
Before deciding on KPIs to evaluate, top management must first understand the risks associated with their operations, assess the systems in place to manage these risks, and comprehend the organization's business goals, strategies, and culture.
The Bottom Line
KPIs are analogous to instruments used to measure temperature and barometric pressure. Knowing whether the temperature has risen or fallen is interesting, but knowing whether a storm is on the way is more important. KPIs complement one another to provide a more complete picture. (REH, 2020)
References
Available from <https://employsure.com.au/guides/employee-performance-management/kpi/>
[Accessed 02 April 2022]
Available from <https://www.thebalancecareers.com/key-performance-indicators-2275156>
Available from <https://www.aihr.com/blog/human-resources-key-performance-indicators-hr-kpis/>
you have well explained The KPIs are important to business objectives.
ReplyDeletebecause they keep objectives at the forefront of decision making. It's essential that business objectives are well communicated across an organization, so when people know and are responsible for their own KPIs, it ensures that the business's overarching goals are top of mind.
Dimunge Wasantha.
Thank you for your valuable feedback about the topic.
DeleteYou have nicely explained about the importance of KPIs and what is KPI. Good Luck Jaliya!
ReplyDeleteThank you for your valuable feedback.
DeleteAs explained clearly in your article, KPIs are important to organisations as it ensures achievement of business objectives. It's essential that business objectives are well communicated across an organization, so when people know and are responsible for their own KPIs. Good Work!
ReplyDeleteThank you for your valuable feedback about the topic.
DeleteSetting KPIs are really important to an organization to maintain and enhance the productivity of employees. KPI should be established according to the work role and outcome. Your article clearly explained the importance and the effects of KPIs. all the best.
ReplyDeleteThank you for your valuable feedback about the topic.
DeleteKPIs are vital to organizations because they ensure the achievement of business objectives, as you clearly stated in your post. You have nicely explained about KPI. Good luck !!!
ReplyDeleteAgreed with your comment and thank you for posting.
DeleteSuccess is not about ideas it's about making ideas happen. So key performance indicator is a measurable value that shows how effectively the company is achieving. It's a good way of evaluating. Well explained best regards.
ReplyDeleteYes, KPI's should used within the Org's to measure the growth (quality, revanue, sales, etc). Thank you for posting.
DeleteAs discussed in this article, KPIs are used to assess the success of a business or a specific activity in which it participates. This is really important for career growth of an employee as well as to measure the organizational set goals. Well written.
ReplyDeleteThank you for posting.
DeleteThis is a good article since it provide more information on key performance indicators and how KPIs important in human resources. Good work.
ReplyDeleteThank you for posting.
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