KPI

Term from Human Resources industry explained for recruiters

KPI (Key Performance Indicators) are the important numbers and goals that companies use to measure how well employees or departments are doing their jobs. Think of them like a report card for work performance. These measurements help managers track progress, make decisions about promotions or training needs, and ensure everyone is working toward the same company goals. For example, a sales team might have KPIs for number of sales made per month, while a customer service team might measure response times and customer satisfaction ratings. KPIs are sometimes also called "performance metrics," "success indicators," or "business metrics."

Examples in Resumes

Developed and tracked KPIs for a team of 25 sales representatives

Created monthly KPI dashboards that improved department productivity by 30%

Implemented new Key Performance Indicators that aligned with company objectives

Managed department KPIs and performance metrics for quarterly review cycles

Typical job title: "Performance Management Specialists"

Also try searching for:

HR Analytics Specialist Performance Management Consultant HR Business Partner Talent Management Specialist HR Manager People Operations Manager Workforce Planning Analyst

Where to Find Performance Management Specialists

Example Interview Questions

Senior Level Questions

Q: How would you develop KPIs for a new department that's never had them before?

Expected Answer: Should explain the process of meeting with stakeholders, understanding business objectives, identifying measurable goals, and creating relevant metrics that align with company strategy. Should mention importance of getting buy-in and testing/adjusting metrics over time.

Q: How do you handle resistance to KPI implementation from managers or employees?

Expected Answer: Should discuss change management strategies, importance of communication and training, demonstrating value through pilot programs, and gathering feedback for continuous improvement.

Mid Level Questions

Q: What's the difference between leading and lagging KPIs?

Expected Answer: Should explain that leading KPIs predict future performance (like employee training hours completed) while lagging KPIs measure past performance (like quarterly sales results). Should provide relevant examples.

Q: How do you ensure KPIs are actually driving the right behaviors?

Expected Answer: Should discuss monitoring unintended consequences, gathering feedback, regular review of metrics, and adjusting KPIs if they're causing counterproductive behaviors.

Junior Level Questions

Q: What makes a good KPI?

Expected Answer: Should mention that good KPIs are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). Should be able to give basic examples of good vs poor KPIs.

Q: How would you track and report on basic KPIs?

Expected Answer: Should discuss basic data collection methods, simple reporting tools like Excel or dashboards, and regular reporting schedules. Should understand importance of data accuracy.

Experience Level Indicators

Junior (0-2 years)

  • Basic data collection and reporting
  • Understanding of common HR metrics
  • Experience with Excel and basic reporting tools
  • Knowledge of SMART goal setting

Mid (2-5 years)

  • KPI development and implementation
  • Performance dashboard creation
  • Stakeholder management
  • Data analysis and interpretation

Senior (5+ years)

  • Strategic KPI alignment with business goals
  • Change management
  • Advanced analytics and reporting
  • Training and development program design

Red Flags to Watch For

  • Unable to explain how KPIs connect to business objectives
  • Focuses only on numbers without understanding their impact on people
  • No experience with data analysis or reporting tools
  • Lack of communication skills for presenting KPI data to stakeholders