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The Significance Of HR KPI In A Company

Nov 19, 2007
HR KPI is a definite must in any existing company today. Human Resource Key Performance Indicators are very much needed in ensuring the productivity of a company's workforce, primarily because these are the aspects in which a certain employee's performance is measured.

With the use of KPI, a company's HR department can keep track of the productivity, work quality, teamwork, initiative, and problem solving skills of their employees. Making the employees aware of the existence of these Key Performance Indicators would also provide them motivation in improving their work performance, thereby, increasing productivity for the company as a whole.

Key Performance Indicators also make great management tools. By looking at these indicators, the HR department can already pinpoint the areas at which their employees are performing very well. More importantly, these indicators would reveal at which areas employees need certain levels of improvement.

The indicators themselves also show at which areas employees feel stressed out, whether this is related to the job or outside of the workplace. Stress in the workplace could be related to the rigors of the job itself, conflict among co-workers, and frustration caused by the demands of the job itself. These are the aspects that would be included in the employee's indicator.

These aspects would then make up the individual reports of each employee, as well as management reports. The individual report would be used by the employee, in determining the areas he or she would need to improve on. These areas can be solely related to the job, such as a certain task or duty that he or she specializes in.

These areas could also pertain to the attitude of the employee, such as cooperation, teamwork, and leadership skills. The management report, on the other hand, would be used to come up with ideas on how to coach and motivate employees, so that overall improvement would be achieved. Better management of the employees and the operations of the company is also a goal in the development of management reports.

The scoring process of these Key Performance Indicators is not that difficult because computers are used in determining these scores. All that needs to be done is to feed the computer with the necessary information in determining these indicators and coming up with the individual and management reports.

There are a number of questions that the employees would be asked in determining these indicators. Does the employee like doing his or her job? Does the employee see himself or herself capable of performing the tasks that the job entails? Is the employee satisfied with his or her work environment? Does the employee have healthy relations with his or her co-workers, as well as members of the management staff? These are just some of the questions that they employee would have to answer during the whole process.

HR KPI is indeed needed in any company, for the overall success of its operations. Sales, employee relations, customer service, team development, hire orientation; these are the aspects that would have significant improvement with the use of Key Performance Indicators. This is precisely why it is recommended for companies to make use of HR KPI.
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