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How can KPIs improve HR's role in performance management?

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Performance management is a vital process for any organization that wants to achieve its goals and retain its talent. However, many HR professionals struggle with measuring and improving the performance of their employees, teams, and departments. How can they use key performance indicators (KPIs) to enhance their role in performance management? In this article, we will explore what KPIs are, how to choose and align them with organizational objectives, how to monitor and communicate them, and how to use them to motivate and develop employees.

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Cathy Rojas

Customer Success | LinkedIn ?? Top Business Admin Voice | Ethical Tech Advocate | World Traveler

1 What are KPIs?

KPIs are measurable values that indicate how well an individual, team, or department is performing against a specific goal or objective. KPIs can be quantitative or qualitative, leading or lagging, and based on various criteria such as productivity, quality, customer satisfaction, employee engagement, etc. KPIs help HR professionals to track and evaluate the progress and impact of their initiatives, programs, and policies on the organization's performance.

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2 How to choose and align KPIs?

Choosing and aligning KPIs is an essential step for HR professionals to ensure their role in performance management is in line with the organization's vision, mission, and strategy. To do this, HR professionals should first identify the key organizational goals and objectives that HR supports or influences, and then break them down into smaller, more specific HR goals and objectives. Following this, they should define the desired outcomes and results for each HR goal and objective, select relevant indicators to measure these outcomes, set targets and benchmarks for each indicator, and finally align the indicators with the organization's performance management system and framework.

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Cathy Rojas

Customer Success | LinkedIn ?? Top Business Admin Voice | Ethical Tech Advocate | World Traveler
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KPI's are crucial for HR Managers to use with teams in performance management. In my experience, HR managers have worked with department heads and operations managers to set the vision, goals and benchmarks each month and fiscal year.

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3 How to monitor and communicate KPIs?

Monitoring and communicating KPIs is an essential step for HR professionals to ensure their role in performance management is transparent, consistent, and accountable. To do this, HR professionals should collect and analyze data and information related to the indicators on a regular basis. Then, they can compare the actual performance with the targets and benchmarks, identify the gaps and trends, and report and present the findings and insights to relevant stakeholders. After that, they should provide feedback and recommendations based on the findings, as well as celebrate achievements and successes while addressing challenges and issues.

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Cathy Rojas

Customer Success | LinkedIn ?? Top Business Admin Voice | Ethical Tech Advocate | World Traveler
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Performance reviews done consistently on a quarterly and yearly format are important to provide feedback to teams and also receive feedback as management. Having a constant discussion of the benchmark as compared to the goal this year and results last year are a powerful way to empower teams in their performance. I usually have someone in my team volunteer to go over important metrics and communicate results to the teams on a consistent basis.

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4 How to use KPIs to motivate and develop employees?

Using KPIs to motivate and develop employees is a key step for HR professionals to ensure their role in performance management is supportive, engaging, and empowering. HR professionals should involve the employees in choosing and aligning KPIs that reflect their roles and responsibilities, and communicate the expectations and standards for each KPI. It's important to provide regular and constructive feedback and recognition based on the KPIs, identify strengths and areas of improvement, as well as encourage the employees to set their own goals and action plans. All of these steps will help support the employees in achieving their goals.

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Cathy Rojas

Customer Success | LinkedIn ?? Top Business Admin Voice | Ethical Tech Advocate | World Traveler
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It's important to monitor progress in order to create awareness of results to everyone in the team. Data is empowering and performance management can be a way to encourage teams to know where their results are throughout the month.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can KPIs improve HR's role in performance management?

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3

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1 What are KPIs?

2 How to choose and align KPIs?

3 How to monitor and communicate KPIs?

4 How to use KPIs to motivate and develop employees?

5 Here’s what else to consider

Business Administration

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How can KPIs improve HR's role in performance management?

1

2

3

4

5

1 What are KPIs?

2 How to choose and align KPIs?

3 How to monitor and communicate KPIs?

4 How to use KPIs to motivate and develop employees?

5 Here’s what else to consider

Business Administration

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