HR management

KPI examples

Key Performance Indicator (KPI)

I. Characteristics of KPI

KPI is a term specifically used to indicate criteria adopted in evaluating the employee’s performance. Following are some characteristics of KPI:

1. A KPI must be aligned with the organization’s objectives;

2. A KPI is determined by management personnel (normally human resource managers);

3. A KPI must be designed so that it is easy to understand;

4. Some KPIs are specifically designed for each employee;

5. KPIs are expected performance by the organization;

6. KPIs must be designed to balance the evaluation of each employee;

7. KPIs lose their accuracy over time; therefore, it is necessary to revise KPIs periodically.

II. Requirements of a KPI:

An effective KPI should be:

1. Specific;

2. Measureable;

3. Achievable;

4. Performance relevant;

5. Containing deadline requirement.

III. How to design a KPI?

1. Design Key Result Areas (KRAs) and the importance of each KRA;

2. Identify necessary procedures to perform each KRA;

3. Identify the measurement criteria for each KRA and evaluate the importance of each criterion;

4. Summarize the criteria and the importance of each criterion;

5. Develop a summary table of KPIs.

IV. KPI examples

You can use free KPI examples for fields as follows:

1. Human resources KPI (includes KPIs of employee loyalty, labor relation, compensation, training and development, recruitment etc.)

2. Sales KPI (includes KPIs of sales rep, sales contact by telephone, shops and supermarkets management, customer loyalty, customer care etc.)

3. Marketing KPI (includes KPIs of public relations, promotion, advertisement, e-marketing etc.)

4. Production KPI (includes KPIs of material management, order management, productivity KPI, quality, maintenance etc.)

5. Purchasing KPI (includes KPIs of delivery on time , delivery is not enough quantity / quality, quantity bought over required, purchasing cost, cost of purchasing units, transaction cost unit of purchasing, suppliers rating etc.)

6. Financial KPIs (KPIs includes KPIs of asset management, payroll management etc…)

7. Accounting KPIs (includes KPIs of accounts payable management, accounts receivable management etc…)

V. Related KPI posts

• What are key performance indicators

• Key result areas

• KPI ebooks (download free and ref all ebooks related to KPI application).

VI. Best performance appraisal resources

1. Balanced Scorecard Toolkit and Trainings.

2. Phrases For Performance Appraisals

3. Employee Performance Appraisals Forms.

4. Employee Performance Review: Tips, Templates & Tactics.

5. Managers Guide to Performance.

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