KPIs or Key Performance Indicators, are understood as performance measures that facilitate evaluation of performance and efficiency of processes that are an integral part of the company’s strategy. Consequently, KPIs allow to understand how effective our team is to achieve goals. Before establishing any type of performance measure, it is essential to establish the key results that aimed to be achieved. It is important to note that KPIs must have certain characteristics to ensure the improvement of productivity. A Key Performance Indicator must be objective, measurable, achievable, clear, and precise.
The use of KPIs in the Human Resources department, which is the spirit of the whole organization, will bring several benefits to the company; of which the most outstanding is the productivity increase. The implementation of key indicators (KPIs) makes it possible to have more precise control of the performance and processes that are carried out in the company. Additionally, KPIs give a clear vision of what needs to be enhanced, improved, or optimized. The results of the usage of KPIs are significant profit and lower costs. The organization that implements KPIs will have a competitive advantage over similar organizations that do not use performance measures, as KPIs allow greater control and increased quality of procedures. An adequate performance control prevents unnecessary time loss on correcting errors that could have been anticipated or avoided. One of the essential benefits of KPIs within any organization is their positive impact on employees. Setting achievable and measurable parameters will bring greater job satisfaction since employees are clear about what they must do to achieve good performance. Therefore, it is recommended that the implementation of KPIs include motivation programs.
When implementing a performance and productivity management plan using KPIs, it is necessary to have tools to monitor, control, and evaluate the established indicators. Unfortunately, most of the errors that organizations make when using key indicators are due to the lack of time of supervisors or managers to monitor the performance of KPIs. Successful organizations use IT tools specifically designed to make it easier to assess indicators and systematize the information so that it can be available at any time.
