Key Performance Indicators (KPIs), as the title reflects, are indicators to measure performance. This can be measured on a larger scale, such as organizational objectives, or on a smaller scale, such as organizational departments.
Before discussing how useful KPIs are for measuring the performance of HR, let’s first identify the main responsibilities of the HR department. See a list of those responsibilities below. If your organization has more responsibilities, add them to your list and consider them when building KPIs.
Learning and Development (L&D;)
Workforce Performance
Workforce Costs (salary, travel, etc.)
Recruitment
At winningkpi.com we have a list of over 30 different types of HR KPIs, covering the areas above. The main sections of our KPIs measure the topics below. I also added for you some KPI titles you will find on the website.
L&D;
Measuring of training efficiency">
Measuring of Learning and Development (L&D;) Investment per Employee">
Workforce Performance:
Measuring of % of Employees Receiving Regular Performance Reviews">
Measuring of account department and..finance department staff's daily performance.">
Workforce Costs:
Measuring of HR Department Cost per FTE">
Measuring of Average Travel Costs per Employee">
Turnover and Recruitment:
Measuring of Average Cost to Recruit ">
Measuring of % Termination Rate within 4 years">
HR Department efficiency:
Measuring of Average Response Time for Routine HR Inquiries ">
Each KPI has one or more comments under it with further explanations. If you don’t find what you are looking for, POST IT! You will get support from our team of professionals, or from fellow business users.
Remember, HR works with the workforce; they are responsible for the personnel. In today’s day and time, HR is far from only focusing on transactional work such as payroll and administration. The department embraced a strategic role in managing the workforce, and getting it in line with organizational objectives. So, if we measure the performance of a sales man based on how many sales he made, why not measure HR’s performance based on how well the personnel is doing? Most HR departments now have employees/people strategies in place, annual appraisals, etc.
KPIs are a great tool to assist HR in measuring its own performance as a department and the quality of work they deliver. To make the most of your organization’s HR KPIs, check out the best practice tips below. They will help you take 100% benefit from the KPIs here at winningkpi.com.
Personalize them!
Ensure they measure what you need measured. We have around 30 different KPIs for HR, a wide range to choose from. Identify what you need to measure, take our examples and adapt them to your situation. If you’re not sure what you want measured, that’s fine. All you need to do is browse through our KPIs, take a note of what you would like to measure, and then apply it to your business needs. Post a request for specific KPIs or a comment under an existing KPI and we’ll help you with the process.
Make them strategic!
KPIs, as their name reflects, are tools to measure performance. In simple words, performance measures how well the company is working towards meeting strategic goals. Therefore, it is very important that the KPIs are aligned with the overarching strategy. Ensure to get the KPIs in line with the HR strategies as well as the Organizational strategies.
Make them measurable!
Just like objectives, KPIs need to the SMART (Specific, Measurable, Achievable, Realistic and Time Scaled). If possible, include them in the employee annual appraisals. The structure should be similar to:
Organisational Strategic Goals
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HR Department Strategic Goals
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KPIS
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Employee Objectives
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