What are key performance indicators (KPI)

What are key performance indicators (KPI)?

1. Definition of key performance indicators (KPI)
A key performance indicator is a financial and non-financial measure used to measure progress towards a stated organizational goal or objective.

2. The benefits of measuring Key Performance Indicators
• It can be a very quick way of seeing the actual performance of a goal or strategic objective.
• Decisions can be made much quicker when there are accurate and visible measures to back them up.
• Can allow management to see the company or department performance in one place.
• A team can work together to a common set of measurable goals.

3. Characteristics of KPI
• KPI is always connected with the corporate goals.
• A KPI is decided by the middle or top management.
• It belongs to an individual who is accountable for its outcome.
• A KPI leads to action.
• Few in number.
• They are leading indicators of performance desired by the organization.
• Easy to understand.
• It should be balanced not undermine each other.
• Users can gauge their progress overtime.
• KPI’s loses its value overtime so they must be periodically reviewed and refreshed.

4. Condition of KPI:
• Specific.
• Measurable.
• Achievable.
• Result-oriented or Relevant.
• Time-bound.

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Human Resource Health and safety KPI

Human Resource Health and safety KPIHealth and safety KPIs include key performance indicators as follows:


1. Health and safety non-conformance KPI
• Number of non-conformance per year / quarter..
• Number of accidents per year.
• Number of reportable accidents year.
• Number of reportable non-fatal accidents per year.
• Number of solved safety non-conformance for the month.
• Percentage of corrective actions closed out within specified time-frame.
• Percentage of fatal accidents relative to all accidents per year.

2. Health and safety training KPI
• Percentage of staff with adequate occupational health and safety training.
• Total of hours in safety and health training in the month.

3. Health and safety representatives KPI
• Percentage of attendance at occupational health and safety committee meetings.
• Percentage of health and safety representatives positions filled.
• Percentage of issues raised by H&S Reps acted.
• Percentage of occupational health and safety committee recommendations implemented.

4.Health and safety Costing KPI
• Cost of solved safety non-conformance for the month.
• Health and safety prevention costs within the month.

5.Health and safety results KPI
• Lost time (in hours) due to non-fatal accidents per year.
• Lost time (in hours) due to accidents (including fatalities) per year.

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Human Resource Training KPI

Human Resource Training KPITraining KPIs include key performance indicators as follows:
1. Training costing
• Company training expenditure (% of salaries and wages)

2. Training hours
• Average number of training hours per employee

3. Training certificates
• Number of employees completing sponsored MBA programs

4. Training courses
• Number of courses offered
• Number of courses implemented.

5. Training satisfaction
• Employee satisfaction with training.

6. Training budget
• % of HR budget spent on training
• Average training costs per employee

7. Training results
• % of employees gone through training
• Average time to competence. That is average time it takes until expected competence level is reached.
• % & employee reach competence after training.

8. Training penetration rate
It measures the percentage of employees completing a course compared to total number of employees employed.

9. E-learning training
• e-learning courses utilized
• % of e-learning pass rate

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Human Resource Recruitment KPI

Human Resource Recruitment KPIRecruitment key performance indicators (KPIs) is a part of Human resources KPI include KPI as follows:

1. Recruitment costing KPI
• Recruitment costing per position.
• Recruitment costing per position per channel
• Average sourcing cost per hire Average sourcing cost per hire. Sourcing costs include advertising, referral and agency

2. Recruitment time KPI
• Average time to recruit. Calculating from date of recruitment require to date of employee hired.
• Average time to recruit per position.

3. Recruitment source KPI
• Number of CVs / per channel
• Recruitment source ratio. Ratio between internal versus external recruits.

4. Selection KPI
• Average number of interviews from submitted resumes. Track the number of converted submitted resumes to interviews.
• Number of qualified candidate compared to resumes.

5. Recruitment efficiency KPI
• % recruitment achievement meet hiring plan
• % new hires achieving 6 months service
• % new hires achieving 12 months service
• % new hires achieving satisfactory appraisal at first assessment

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