All companies that seek to improve productivity of its collaborators and profitability, must know how to measure KPIs for performance management. Therefore, it is necessary to know them in detail and have a suitable computer solution for their evaluation.
Role of KPIs for performance management
Key Performance Indicators have the role of quantifying the effectiveness of a task or process within the business. They are a series of optimal metrics that you establish using software like Oracle Cloud HCM or another program and serve as a benchmark when evaluating employee performance.
KPIs are characterized by being:
- Measurable: If it is not a measurable variable than it is not a KPI.
- Accessible: The benchmark set must be based on realistic targets for what operational success or failure represents.
- Specific: In terms of goals, it needs to be based on concrete actions and be well defined.
- Important: These benchmarks must have relevance for the business, monitoring inconsequential data is a waste of effort.
Which are the key performance indicators associated to human talent
- Average time to reach goals. It helps to evaluate efficiency in completing activities and it is recommended for new and established employees. As experience is gained, it decreases and eventually, it stagnates.
- Prevalence in Position. Employees can leave the company for being too much time in a position. This metric shows prevalence to adjust promotions or rotations.
- Work absenteeism. Used to predict the availability of teams, you can measure what an employee absence costs.
- Average hiring time. The time it takes to provide staff means a cost. With a detailed analysis of this data, you can optimize recruitments.
- Retention. This is linked to the work climate, incentives, and staff development and it indicates the stability of the business. If the staff turnover is high, the company looses talent and money.
Measuring KPIs for performance management of human talent has become crucial for having a competitive and profitable business. With the help of our experts in Oracle HCM Cloud, you will not have problems achieving this. Make an appointment.
Let Oracle HCM Cloud and Fusionworks transform your business!