Key Performance Indicators (KPI) Examples

Mickey | Business | Friday, December 17th, 2010

Measuring performance is a very important management task. In order for an organization to be successful, employees must be able to meet the goals of the company in the span of time that they’re supposed to be finished. Without a proper tool to measure this, the management may fail to have a grasp of the true state of the organization. So as to avoid this, companies set up KPIs for every one in the company to follow. The following article will provide you with some key performance indicators examples as well as some general knowledge on these indicators.

What is a KPI?
What exactly is a KPI? KPI or Key Performance Indicators are very specific measures on different areas of business operations. KPIs may address both financial and non-financial matters. In a sense, it is a tool for measuring performance of individuals or departments in complying with pre-defined goals set up by the management.

The purpose of a KPI

The purpose for having a KPI is for the company to have quantifiable information that can be of big help for its long-term goals. In this end, one company’s KPI may not work well with another company simply because both companies aim for different long-term goals and objectives. Therefore it helps to have a better understanding of the company’s goals and the directions that it is supposed to be heading to before designing the specific KPIs.

The Benefits of KPIs

Having workable KPIs, the management, employees and other stakeholders of the company will have a clear idea of how far or near the company is from achieving its goals. The information gained can be used to make quick decisions in order to improve the company as a whole. In addition, KPIs can also motivate employees. Individuals with fixed goals to meet are more driven to work hard than those who haven’t. A sense of healthy competition may also arise among employees, allowing them to maximize their potential.

KPI examples

There are many available KPI example guides in the internet. In fact, the possible examples may nearly be limitless. As a help, below are some examples of Key Performance Indicators.

HR department

– Recruiting fee as percentage of annual salary

– Percentage of vacancies filled within a given time

– Average time employees are in the same job or function

Health and Safety

– Number of safety inspections for the month

– Number of fatalities per e.g. 100,000 hours worked

– Health and safety prevention costs within the month

Accounting department

-Percentage of aging of uncollected bills

-Payroll expense per employee

These are just examples, as a company you can formulate KPIs that suit your company’s ideals and goals. Keep in mind that most managers ask for a key performance indicators dashboard to help them see these indicators quickly and regularly.

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