HomeHR glossaryKey Performance Indicator (KPI)
Key Performance Indicator (KPI)

Key Performance Indicators (KPIs) are measurable metrics that assess the effectiveness of an organization's human resources activities and strategies. These metrics provide valuable insights into the performance and impact of HR initiatives, helping organizations make informed decisions and optimize their workforce management.

An example of an HR KPI is "Employee Turnover Rate," which measures the percentage of employees who leave the company within a specified period. A low turnover rate indicates a stable and engaged workforce, while a high rate may signal underlying issues such as dissatisfaction or poor retention strategies. Monitoring this KPI allows HR to take proactive measures to address turnover and improve employee retention.

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