Key Performance Indicator — a measurable value showing how effectively an individual or team is achieving objectives.
KPI (Key Performance Indicator) is a quantifiable metric that shows how well an individual, team, or organisation is performing against defined objectives. Unlike OKRs (which are aspirational and reset each quarter), KPIs are typically ongoing operational health metrics watched continuously: customer churn rate, monthly recurring revenue, net promoter score, support response time, employee turnover.
Good KPIs are specific, measurable, actionable, relevant, and time-bound. Common HR KPIs include: employee turnover rate, time-to-hire, cost-per-hire, offer acceptance rate, training hours per employee, absenteeism rate, and engagement survey scores. Common business KPIs include MRR, ARR, churn, CAC, and LTV.
KPIs drive decisions but should not replace context. A rising turnover KPI might indicate poor management, inadequate pay, or simply a shift to remote-first competitors — only investigation reveals the cause. HR platforms surface KPIs via dashboards updated in real time from payroll, attendance, and performance data.
Our key HR KPI this year is reducing voluntary turnover from 22% to below 15%.
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