KPIs

[B]Hello,[/B]

Our company has just started an HR department, and I am the person responsible to build everything from scratch, and I mean it: I have to organize personnel files, create the handbook, policies & procedures, etc. I am trying to figure out which Key Performance Indicators to use for this stage, since for example, I cannot set up a goal on turnover rate if we are still not able to update job descriptions and come up with a good recruting and selection and performance review process... I could start gathering the information for the future to compare, but right now, I need to come up with KPIs for the short term. Does anyone have any ideas to help me with this?

Thank you, :o
Jacky M.

Comments

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  • Welcome to the Forum, Jacky!

    Establishing KPIs for a new organization (or unit) is tricky... Ideally, you would define KPIs that would accomplish one of these goals:

    1. Provide a measurement of improvement over previous readings.
    For example, determining whether the new HR department is a positive or negative influence on things like turnover. These KPIs are usually constructed by looking at what current performance you want to improve or maintain, defining a measurement, and setting a benchmark (at least temporarily).

    2. Create a new priority (or priorities).
    There's the adage that if it's important, it should be measured. Well, the reverse can also hold true - if it's measured, it can become important. If your organization has never measured or cared about diversity, for example, making it a KPI can help make it a priority going forward - even if it was not even measured before.

    3. Make you look good.
    To be honest, I've walked into a few organizations in which this seemed to be the primary purpose of the KPIs. Somehow, the prior HR staff had convinced everyone these were difficult tasks, and good numbers should be celebrated.

    My personal feeling on KPIs is this: The "K" is important. If this thing you're measuring is not directly linked to the success of your organization, then it's not a KPI. That doesn't mean it isn't important to measure or track it... But I only use the term KPI if I can provide a simple reason why everyone else in the organization should want good numbers. Later on, when you need the support or active participation of others, it will be easier to obtain if they buy into the "K" of KPI.
  • [quote=jmeza;723200][B]Hello,[/B]

    Our company has just started an HR department, and I am the person responsible to build everything from scratch, and I mean it: I have to organize personnel files, create the handbook, policies & procedures, etc. I am trying to figure out which Key Performance Indicators to use for this stage, since for example, I cannot set up a goal on turnover rate if we are still not able to update job descriptions and come up with a good recruting and selection and performance review process... I could start gathering the information for the future to compare, but right now, I need to come up with KPIs for the short term. Does anyone have any ideas to help me with this?

    Thank you, :o
    Jacky M.[/quote]


    Your first post. Welcome to the Forum. :welcome:

    Sharon
  • [B]Hi Frank,[/B]

    Thank you very much for the advise!

    Regards,
    Jacky M.
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