Hello everyone,
I need some help regarding HR KPI. I am new to this. I'm working here in Dubai as an HR and Admin Assistant. My boss is asking me to study about KPI. I have a little knowledge about this. Please help.
Thank you,
Wilfredo
From United Arab Emirates, Dubai
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I need some help regarding HR KPI. I am new to this. I'm working here in Dubai as an HR and Admin Assistant. My boss is asking me to study about KPI. I have a little knowledge about this. Please help.
Thank you,
Wilfredo
From United Arab Emirates, Dubai
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Hi, this' Sandra from HK. Our company has some KPI - recruitment lead-time, renumeration accuracy and management of perfm mgt. Regards
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Dear Wilfredo,
KPI stands for Key Performance Indicators. They are similar to KRA, which stands for Key Result Areas. Any executive working in functions such as Finance, HR, Sales, or Manufacturing has certain key areas to focus on within a given timeframe. As HR Executives, for example, our monthly KPIs include timely disbursement of appointment letters, clearance for employees who have left the organization, and working towards employee satisfaction. The results of these KRAs will determine my Key Performance Indicators for the month.
Hope this explanation is helpful.
Regards,
Pushpendra Soni
From India, Mumbai
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2KPI stands for Key Performance Indicators. They are similar to KRA, which stands for Key Result Areas. Any executive working in functions such as Finance, HR, Sales, or Manufacturing has certain key areas to focus on within a given timeframe. As HR Executives, for example, our monthly KPIs include timely disbursement of appointment letters, clearance for employees who have left the organization, and working towards employee satisfaction. The results of these KRAs will determine my Key Performance Indicators for the month.
Hope this explanation is helpful.
Regards,
Pushpendra Soni
From India, Mumbai
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Dear Wilferodo,
KPI stands for Key Performance Indicator. Every individual in the company should be held accountable for the work they do. Key Performance Areas (KPA) can be assessed by establishing a proper job description and discussing it with the respective head. Additionally, it is important to consider Key Result Areas (KRA). You may refer to a book by Dr. T.V. Rao where he elaborates on both KPA and KRA.
Regards,
Derek
From India, Nagpur
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KPI stands for Key Performance Indicator. Every individual in the company should be held accountable for the work they do. Key Performance Areas (KPA) can be assessed by establishing a proper job description and discussing it with the respective head. Additionally, it is important to consider Key Result Areas (KRA). You may refer to a book by Dr. T.V. Rao where he elaborates on both KPA and KRA.
Regards,
Derek
From India, Nagpur
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Hi Wilfredo,
I am working on designing KRA and KPI for my organization. Please find below the KRA and KPI for employee relations division. Since you are in Dubai, I am not sure how relevant they would be to your organization, but they may provide some ideas.
Hope you find it useful. All the best.
Regards, Jhuma
From India, Mumbai
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I am working on designing KRA and KPI for my organization. Please find below the KRA and KPI for employee relations division. Since you are in Dubai, I am not sure how relevant they would be to your organization, but they may provide some ideas.
Hope you find it useful. All the best.
Regards, Jhuma
From India, Mumbai
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To all who responded:
Thank you so much for your help and suggestions. I hope that I can also help you guys in other topics. Especially to Jhuma, your contributions are great, and I think they're very useful.
Wilfredo
From United Arab Emirates, Dubai
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Thank you so much for your help and suggestions. I hope that I can also help you guys in other topics. Especially to Jhuma, your contributions are great, and I think they're very useful.
Wilfredo
From United Arab Emirates, Dubai
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AS the first step to build KRAs for HR,
YOU must visit
YOUR COMPANY'S
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
AND COULD CHANGE YEAR BY YEAR AS PER THE BOARD DIRECTIVES.
-------------------------------------------------------------------------------
Then review your own job description.
-------------------------------------------------------------------------------
UNDERSTAND THAT THE ,
KRA AND KPA
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA.
------------------------------------------
Value
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
---------------------------------------------------
Description
Key result areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the griptionood of the organisation).
-----------------------------------------------------------
EXAMPLE
HR [ KRAs]
CORE KRAs
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
----------------------------------------------------------------
KEY PERFORMANCE AREAS [ KPA ]
These are the areas within the ORGANIZATION FUNCTIONS, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA, a set of KPA / KPI are set .
KPA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable
EXAMPLE OF HR
KRA = RECRUITMENT / SELECTION
KPA 1 = RECRUITMENT
KPA 2= SELECTION
KPi for KPA 1= reduce the recruitment cost per head by 10%.
KPi for KPA 2 = finalize selection in 5 weeks for each individual position.
--------------------------------------------------------------
.THE CHOICE OF HR KPI WILL VARY FROM YEAR TO YEAR,
SUBJECT TO COMPANY'S
-STRATEGIC PLANNING
-CORPORATE STRATEGIES
-CORPORATE OBJECTIVES
WHICH IN TURN AFFECTS THE HR'S
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
-------------------------------------------------------
HERE ARE SOME EXAMPLES.
of KPI
FOR EACH ELEMENT, YOU CAN SET YOUR OWN
THRESHHOLD, BASED ON YOUR COMPANY
STRATEGY/ HR STRATEGY.
================================================== =====
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
THESE ARE SAMPLES ONLY.
YOU SHOULD BE GUIDED BY YOUR COMPANY
OBJECTIVES //STRATEGIES.
REGARDS
LEO LINGHAM
From India, Mumbai
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YOU must visit
YOUR COMPANY'S
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
AND COULD CHANGE YEAR BY YEAR AS PER THE BOARD DIRECTIVES.
-------------------------------------------------------------------------------
Then review your own job description.
-------------------------------------------------------------------------------
UNDERSTAND THAT THE ,
KRA AND KPA
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA.
------------------------------------------
Value
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
---------------------------------------------------
Description
Key result areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the griptionood of the organisation).
-----------------------------------------------------------
EXAMPLE
HR [ KRAs]
CORE KRAs
-RECRUITMENT/ SELECTION
-WORKFORCE PLANNING/ DIVERSITY
-PERFORMANCE MANAGEMENT
-REWARD MANAGEMENT
-WORKPLACE MANAGEMENT AND RELATIONS
-SAFETY AND HEALTH WORKPLACE
-BUILDING CAPABILITIES AND ORGANIZATION LEARNING
-EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
----------------------------------------------------------------
KEY PERFORMANCE AREAS [ KPA ]
These are the areas within the ORGANIZATION FUNCTIONS, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA, a set of KPA / KPI are set .
KPA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable
EXAMPLE OF HR
KRA = RECRUITMENT / SELECTION
KPA 1 = RECRUITMENT
KPA 2= SELECTION
KPi for KPA 1= reduce the recruitment cost per head by 10%.
KPi for KPA 2 = finalize selection in 5 weeks for each individual position.
--------------------------------------------------------------
.THE CHOICE OF HR KPI WILL VARY FROM YEAR TO YEAR,
SUBJECT TO COMPANY'S
-STRATEGIC PLANNING
-CORPORATE STRATEGIES
-CORPORATE OBJECTIVES
WHICH IN TURN AFFECTS THE HR'S
-HR STRATEGIC PLANNING
-HRM STRATEGIES
-HRM OBJECTIVES
-------------------------------------------------------
HERE ARE SOME EXAMPLES.
of KPI
FOR EACH ELEMENT, YOU CAN SET YOUR OWN
THRESHHOLD, BASED ON YOUR COMPANY
STRATEGY/ HR STRATEGY.
================================================== =====
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
1 HR UTILIZATION % TOTAL PAYROLL $ / TOTAL SALES $
2. HR PRODUCTIVITY % TOTAL EMPLOYMENT COST $/TOTAL
PRODUCTION VOLUME IN $ X 100
3. HR BUDGET % ACTUAL $ / BUDGET $ X 100
4'. ACCIDENT COSTS % CURRENT ACTUAL $ / LAST YEAR $ X 100
5'. ACCIDENT SAFETY % CURRENT ACTUAL $ / LAST YEAR $ X 100
RATINGS
6'. EMPLOYEE % EMPLOYEE BENEFITS $ / TOTAL PAYROLL $ X100
BENEFITS
EMPLOYEE BENEFITS $ /TOTAL SALES $ X 100
7'. HR BUDGET % ACTUAL HR EXPENSES $ / TOTAL SALES $ X 100
sales effectiveness
8'. HR EXPENSES $ TOTAL HR EXPENSES $ / TOTAL NO. OF EMPLOYEES
per head
9'. HR EXPENSES % HR EXPENSES $ / TOTAL EXPENSES $ X 100
cost effectivenss
10'. NO.OF COURSES % ACTUAL CONDUCTED / PLANNED X 100
CONDUCTED
11. NO. OF SAFETY % ACTUAL CONDUCTED / PLANNED X 100
training programs
12. TRAINING DAYS % ACTUAL TRAINING DAYS / PLANNED X 100
EFFECTIVENESS
13. EMPLOYEES % ACTUAL TAKING PART / PLANNED X 100
involvement in train
14. SICK DAYS nos. TOTAL SICKDAYS TAKEN/ TOTAL EMPLOYEES
managemeent effectiveness
15. STAFF orientation % NO. OF NEW STAFF LEAVING IN THREE MONTHS/
EFFECTIVENESS TOTAL NO. OF NEW STAFF ORIENTED
X 100
16. TIME TO FILL AN NO.DAYS TOTAL NO OF DAYS / TOTAL NO positions filled
OPEN POSITION
17. TURNOVER BY % TURNOVER / TOTAL RECRUITMENTS X100
RECRUITING source
BY EACH SOURCE
18. TURNOVER BY % TURNOVER / TOTAL EMPLOYEES BY EACH
EACH JOB CATEGORY
CATEGORY X 100
19. WORKERS % ACTUAL $ / PLANNED BUDGET $ X 100
çompensation costs
20. HR STAFFING NO. TOTAL HR STAFF / TOTAL EMPLOYEES
EFFICIENCY
THESE ARE SAMPLES ONLY.
YOU SHOULD BE GUIDED BY YOUR COMPANY
OBJECTIVES //STRATEGIES.
REGARDS
LEO LINGHAM
From India, Mumbai
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Dear Leo Sir I don’t know how to thank you for such a good post on KRAs. I was planning to make a presentation on KRAs and this material will be so useful for that. Thank you so much Rgds Tania
From India, Gurgaon
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From India, Gurgaon
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hi, I’ve posted a topic related to this. You can check it out in the below link. Hope it will be useful. Regards, Sowmya
From India, Bangalore
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From India, Bangalore
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Hi All,
Let's say I've received the KPIs for our HR Department. Could you all assist me in elaborating/drawing out the action items needed to achieve them? My KPIs are:
1. Employee Turnover
2. Absenteeism
3. Medical Leave
4. Recruitment
I'm new to this forum as well as the HR field.
Thank you very much. :)
-Kerayzee
From Malaysia, Penang
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Let's say I've received the KPIs for our HR Department. Could you all assist me in elaborating/drawing out the action items needed to achieve them? My KPIs are:
1. Employee Turnover
2. Absenteeism
3. Medical Leave
4. Recruitment
I'm new to this forum as well as the HR field.
Thank you very much. :)
-Kerayzee
From Malaysia, Penang
Acknowledge(0)Amend(0)
HR - KPI as follows: 1. No. of Trainings / Month 2. Rate of Absenteeism / Month 3. Rate of Attrition / Month 4. Accident / Incident S. VINOHAR
From India, Madras
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From India, Madras
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Hi Wilfredo,
I am providing you with four simple steps to understand Key Result Areas (KRA) and Key Performance Indicators (KPI):
1) Core activities (Not daily):
- Understand the purpose of this.
2) Other activities (Not daily):
- Combine the purposes of these two activities to determine the KRA.
KRA is essentially the outcome of the activities you perform, not the activities themselves. On the other hand, KPI is the performance indicator that allows you to measure your activities.
A KRA should be simple, following the S.M.A.R.T criteria:
- S: Specific
- M: Measurable
- A: Achievable
- R: Realistic
- T: Time-bound
Always ensure that your KRA is realistic when you prepare it. I hope these tips prove helpful to you.
From India, Mumbai
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I am providing you with four simple steps to understand Key Result Areas (KRA) and Key Performance Indicators (KPI):
1) Core activities (Not daily):
- Understand the purpose of this.
2) Other activities (Not daily):
- Combine the purposes of these two activities to determine the KRA.
KRA is essentially the outcome of the activities you perform, not the activities themselves. On the other hand, KPI is the performance indicator that allows you to measure your activities.
A KRA should be simple, following the S.M.A.R.T criteria:
- S: Specific
- M: Measurable
- A: Achievable
- R: Realistic
- T: Time-bound
Always ensure that your KRA is realistic when you prepare it. I hope these tips prove helpful to you.
From India, Mumbai
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Key performance indicators (KPI).doc
Cpm - Key Performance Indicators - D Parmenter (John Wiley & Sons) - 2007 [0470095881]-1. pdf