Human Resources Kpis: 2016 Extended Edition

TOP 25
HUMAN RESOURCES KPIS

2016 EXTENDED EDITION
# Employee engagement index # Time to fill a vacant position % Employee turnover

% Performance appraisals completed on time # Training hours per full time equivalent (FTE)
% Training penetration rate % Employee satisfaction # Management-to-staff ratio
% Employee retention rate % Internal promotion rate # Employment brand strength
# Supervisor to staff ratio # Hours lost due to absenteeism # Recruiter to open requisitions ratio
% New hire failure # Rookie ratio % Job offer acceptance rate # Employee tenure
# Fringe benefits to basic salary ratio $ Training investment per full time equivalent (FTE)
% Paid-time-off (PTO) hours utilization rate # Employee commitment index % Employee cost over sales revenue
$ Human capital value added % Human Capital Return on Investment (ROI)
Publication date: May 2016

ID number: sk0168041
TOP 25
HUMAN RESOURCES KPIS
2016 EXTENDED EDITION
# Employee engagement index # Time to fill a vacant position % Employee turnover

% Performance appraisals completed on time # Training hours per full time equivalent (FTE)
% Training penetration rate % Employee satisfaction # Management-to-staff ratio
% Employee retention rate % Internal promotion rate # Employment brand strength
# Supervisor to staff ratio # Hours lost due to absenteeism # Recruiter to open requisitions ratio
% New hire failure # Rookie ratio % Job offer acceptance rate # Employee tenure
# Fringe benefits to basic salary ratio $ Training investment per full time equivalent (FTE)
% Paid-time-off (PTO) hours utilization rate # Employee commitment index % Employee cost over sales revenue
$ Human capital value added % Human Capital Return on Investment (ROI)
Publication date: May 2016

INDEMNITY STATEMENT
© 2016 The KPI Institute Ltd. All Rights Reserved.
ISBN-13: 978-1533670199
ISBN-10: 1533670196
This report is the result of primary research conducted by the KPI Institute. It is available in PDF format on the smartKPIs.
com website. Terms of use available at: http://www.smartkpis.com/terms-of-use.html (‘Premium content terms’).
An appropriate citation for this report is:

The KPI Institute (2016), Top 25 Human Resources KPIs – 2016 Extended Edition, Melbourne, Australia
Indemnity statement
The KPI Institute has taken due care in preparing the analysis contained in this report. However, noting that some of
the data used for the analysis has been provided by third parties, The KPI Institute gives no warranty to the accuracy,
reliability, fitness for purpose, or otherwise of the information. The KPI Institute shall have no liability for errors, omissions
or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are
subject to change without notice. For the latest version of the documentation, smartKPIs Premium should be consulted.
Editorial Coordination:
Aurel Brudan
Editorial Team:
Cristina Tărâță, Marcela Presecan
Research Team:
Cătălin Stoia, Tudor Modruz
Published by:
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www.kpiinstitute.org | smartKPIs.com
Page 2 www.kpiinstitute.org
FOREWORD
There is a rumor going around about a Fourth Industrial of performance no longer driven by competition, but
Revolution. A historical synopsis of what has been, shows by relentless new talent building on innovation and
us that we have successfully transcended the mechanical faced -paced learning. In this new world of unchartered
use of equipment, mass production, electronics, IT and communication possibilities and unimaginable velocity,
automation to finally enter our next stage of evolution: there will be a paramount need to fill in the current gaps in
self-adaptive systems and cyber-physicality. Everything management, HR, strategy and performance capabilities.
human related has come to a transformation, and that The bind between performance and compensation is
cannot be exclusive of the performance management unfastened, while companies like Adobe, GAP and General
discipline. Electric have already relinquished annual performance
reviews from their repertoire.
The fact of the matter is, that it is becoming of performance
management practices today, to have a visionary effect on The performance management of tomorrow will live to
all that concerns the lucrative corporations of tomorrow. see a world where success gets to be built on talent,
As of recent years, performance management disciples on human resources strategies that revolve around
have rendered practices of monitoring past performance cultivating and harvesting employee strengths. There
obsolete, they have praised the emergence of leading will be a need for sophisticated tools that perform
KPIs to push forward all that’s lagging in the performance real-time, pulse-snatching monitoring, measurement
of our companies, they have condemned organizations and assessment. Metrics and data will have to be more
for searching performance in financials only, and they precise and accurate than ever. Measurement will provide
have preached the use of performance management HR with the data to perform people analytics, it will take
tools that oozed Business Intelligence. Perhaps, the the heartbeat of all operational systems and processes, it
time had come for them to fully take on the role of will even intrude on our personal living habits to report
performance management enthusiasts and fully commit on our health for future performances in the office.
to their progressive ways. And so they did.
Hardly believable, but true. Empowered by technology,
People are talking about seismic changes in the corporate measurement will sprout out data faster and more
world. They speak of matters never heard before. They efficiently than ever. Because measurement will stand at
speak of the downfall of corporate ladders, they speak the bottom of all things and data will be the addiction of
of the fragmentation of skill, they speak of connectivity the new world.
and specialization that dominates the world. They talk
Top 25 Human Resources KPIs - 2016 Edition Page 3

TABLE OF CONTENTS
Section I 6
How to Use This Report 6
Report Structure 7
Report Highlights 8
Section II 10
About The KPI Institute 10
smartKPIs.com Community Profile 12
2016 smartKPIs.com Functional Areas Taxonomy 14
2016 smartKPIs.com Industries Taxonomy 15
Section III 16
KPI…Naturally 16
About Key Performance Indicators (KPIs) 18
Advice on KPI Selection 20
KPI Documentation Guidelines 22
Target Setting: From Theory to Practice 24
Data Gathering Dimensions 26
Enhancing Performance Data Through Visualization 28
Data Analysis 30
KPI Reporting 32
Section IV 34
Human Resources Functional Area 34
Top 25 Human Resources KPIs of 2009-2015 35
Template description: page1 36
Template description: page2 38
# Employee engagement index 40
# Time to fill a vacant position 42
% Employee turnover 44
% Performance appraisals completed on time 46
# Training hours per full time equivalent (FTE) 48
% Training penetration rate 50
% Employee satisfaction 52
# Management-to-staff ratio 54
% Employee retention rate 56
% Internal promotion rate 58
# Employment brand strength 60
# Supervisor to staff ratio 62
# Hours lost due to absenteeism 64
# Recruiter to open requisitions ratio 66
% New hire failure 68
# Rookie ratio 70
% Job offer acceptance rate 72
# Employee tenure 74
# Fringe benefits to basic salary ratio 76
$ Training investment per full time equivalent (FTE) 78
% Paid-time-off (PTO) hours utilization rate 80
# Employee commitment index 82
% Employee cost over sales revenue 84
$ Human capital value added 86
% Human Capital Return on Investment (ROI) 88
Section V 90
Appendix A: Related Reports 90
Appendix B: Reference Collection of Books 92
Appendix C: Performance Management Toolkits 94
Appendix D: Performance Magazine 95
Appendix E: Memberships 96
Appendix F: Subscriptions 97
Appendix G: Training Courses 98
Appendix H: Advisory Services 100
Appendix I: Software 102
Appendix J: Glossary of Terms 104

SEC I HOW TO USE THIS REPORT
Purpose of the report Readership profile
The Top 25 KPIs Reports are aimed at sharing the KPI The Top 25 KPIs Reports are intended for practitioners,
Institute’s valuable knowledge regarding the use of KPIs academics and consultants who are professionally engaged
in measuring performance. The purpose of the report is with the Performance Management discipline. The reports
to introduce readers to the most popular KPIs in their are committed to any individual or organization that may
industry. Moreover, the goal of this report is to provide find reason into both researching and strengthening their
readers with a practical step-by-step guide to enhancing knowledge on performance measurement.
performance by simple recognition of the added clarity,
focus and improvement KPIs bring to any performance The KPI Documentation Form template
measurement process. The novelty in the Top 25 KPI reports – 2016 Extended
As much as they are a valuable resource for harvesting Edition, is the unprecedented two pages’ design of
Key Performance Indicators for any organization, the Top the KPI Documentation Form Template. The first page
25 KPIs Reports are not designated to supply readers with contains updated fields of the KPI Documentation form
the ultimate solution to establishing the right KPIs for as researched and analyzed by The KPI Institute. The
their organizations. The Top 25 KPIs Reports are merely second page of the KPI Documentation form includes
a collection of the most popular KPIs in the functional valuable guidance on KPI Reporting, based on actual
area/industry that the report is intended for. Conveyed exemplification of KPI results and pertinent illustrations
from smartKPIs.com.com, the Top 25 KPIs selected for of Scorecard and Dashboard designs for each of the
each report, are a collection of the most viewed KPIs KPIs included in the report. Not only that, but the newly
in a particular functional area or industry, based on site developed KPI Documentation Form, invaluably shares
statistics and online community readings. “In practice” recommendations for best KPI use, analysis
and interpretation, while ultimately distinguishing itself
from all other performance measurement resources on
the market.
KPI 4 % Budget variance

Functional Areas Accounting Industries Any References
Sub-categories Planning and Reporting Sub-categories Any 1. City of Atlanta (2012), General fund: Budget variance analysis, available at: http://www.atlantaga.gov/modules/showdocument.
KPI Record sK479 Tags budget aspx?documentid=4863
2. Parker, K. and Aird, B. (2013), Budget management and financial reporting, Old Dominion University, available at: http://www.
Description Calculation odu.edu/content/dam/odu/offices/finance-office/docs/budget-management.pdf
3. Australian National Audit Office (2008), Developing and managing internal budgets, available at: http://www.anao.gov.au/
Definition Measures the deviation between the actual Subordinate metrics A = $ Realized budget uploads/documents/Developing_and_Managing_Internal_Budgets1.pdf
costs and the planned (budgeted) costs B = $ Planned budget
for the same period. It can be applied at Scorecard Outlook
organizational, team, project or individual level. Calculation formula [(A-B)/B]*100
Trend is good when Within range Perspective Financial
Variations % Deviation of planned budget
% Project budget variance Strategic Objective Maintain financial discipline
% Variance of project budget
Key SmartKPIs.com Standard Previous
Current
Related KPIs % Budget allocated for new initiatives Performance reference reporting period Trend Target Results
results
$ Project deviation from planned budget Indicator number frequency results
$ Capital renewal budget Data Profile % Budget variance sK479 M 4% 2% 2% ○
% Budgeted time against actual time
% Operating budget spent Data capture period Spot
% Budget allocation on technology and Dashboard Outlook
Standard reporting Monthly
equipment
frequency KPI Results
Focus Data collection Financial records % Budget variance % Budget variance
method
5% 5%
Purpose To indicate the financial discipline M1 5%
Limitations Up-to-date expense tracking is 4% 4%
in executing budgets. Can be used required to ensure reporting is M2 5%
as a tool to control costs. accurate. Usually, there is a delay 3%
between the end of the month M3 4%
BSC perspective Financial 2%
and when reports are available, to M4 3%
Objective measured Maintain financial discipline enable the closing of accounts.
M5 4%
Targets
M6 2%
M1 M2 M3 M4 M5 M6
Threshold examples Target setting notes
Targets should be set according to the internal procedures In Practice Recommendations
○ ○ ○
and standards. In the case of projects with large budgets, a
Planning is an essential part of financial management, as % Budget variance can be both positive and negative.
Red: +/- >15% Yellow: +/- (10- Green: +/- <10% deviation of +/- (5-10%) can be a large amount of money,
well as budget spending. Companies develop budgets The unfavorable variance that concerns organizations
15%) so a +/- (3-5%) target is more appropriate.
as part of their financial strategy. However, progressing is indicated by positive results (such as +7%) because
towards desired company goals, while also maintaining they outline that expenses have exceeded the budget.
Analysis and Resources financial discipline is sometimes easier said than done. On the other hand, negative values (such as -7%) raise
Some recommendations on effectively managing budget questions about the accuracy of planning or reliability
Overall notes Additional resources
http://www.gfoa.org/sites/default/files/GFR_ spending include: of budget execution. There is an increasing interest for
Budget deviation analysis is a direct mean of control of budget deviations, as companies worldwide are more and
the company’s financial discipline in terms of budget OCT_09_8.pdf
h t t p : // w w w . c s u s . e d u / i n d i v / p / p f o r s i c h h / Linking budget to strategy; more concerned with budget execution and accuracy of
execution according to the terms initially agreed upon. Efficient allocation of resources; forecast and planning.
a c c o u n t i n g i n fo / 1 2 1 / C h 0 7 % 2 0 - % 2 0 F l e x % 2 0
Budgets,%20Var%20Analysis/Ch07%20In-Class%20 The use of KPIs to track financial progress;
Problems,%20-%20STUDENT%20COPY.pdf Connecting cost management to budget;
Streamlining cash flow processes;
Built-in flexibility for unexpected spending.
Page 46 www.kpiinstitute.org Top 25 Accounting KPIs - 2016 Edition Page 47
REPORT STRUCTURE
The Top 25 KPIs Reports are structured to include 5 main sections:
Section I
Introduction: Briefly describes the purpose of the report, as well as, clarifies its structure to the readership.
Section II
Overview of the smartKPIs.com platform: Provides a brief description of the smartKPIs.com community profile, by
country breakdown, organization size, industry affiliation, job title, managerial role, and performance related job titles.
The smartKPIs.com taxonomy, takes the reader further into the functional areas and industries that The KPI Institute
has researched for the last 6 years.
Section III
Insights into the world of KPIs: Ensures a deep understanding of the main stages involved in the process of establishing
KPIs for the organization. The section takes the reader on a compelling journey that starts with the clarification of
the common KPI terminology, and moves forward with a description of the KPI selection process, guidelines for KPI
documentation, as well as, a brief tutorial into setting KPI targets. Culminating with the much anticipated matter of KPI
use for decision-making, this section further introduces the reader to the multiple dimensions of data gathering, data
visualization, analysis and reporting.
Section IV
Top 25 KPIs of the functional area/industry for which the report is intended: Itemizes the Top 25 KPIs of the functional
area/industry for which the report is intended, as per the popularity of the selected indicators on the smartKPIs.com
platform. The section provides the reader with an updated documentation form for every KPI. Additionally, with extended
versions of the reports, actual guidance on KPI reporting, as well as, “in practice” advice on generating the most value
out of the KPIs analyzed, is provided.
Section V
Testimonials and related educational resources: Encompasses an extensive list of motivational beliefs, as well as,
invaluable publications and educational programs that readers can use in their further explorations of the performance
management discipline.
V
I III RELATED
EDUCATIONAL
INTRODUCTION RESOURCES
INSIGHTS INTO
THE WORLD OF IV
II KPIS
TOP 25 KPIS
OVERVIEW OF CATALOGUE
THE SMARTKPIS.
COM PLATFORM

REPORT HIGHLIGHTS
Given the economic context and the methodological provided a rich data set, which combined with further
advancements of today, organizations increasingly analysis from The KPI Institute’s editorial team, formed a
focus on managing and measuring performance as a basis for the hereby presented research report.
key component in achieving the desired performance
results for generating business value. Key Performance By clarifying KPI terminology and further enhancing
Indicators (KPIs) embody the critical component of common knowledge regarding the use of KPIs today,
modern performance management and measurement the Top 25 KPI Reports – 2016 Edition are meant to
systems. As such, there are many organizations today encourage analytical thinking, as well as, decision-making
that have diverse performance management initiatives, based on data. The 2016 Edition Top KPI reports cover
which entail the measurement of results against targets a number of 16 functional areas and 25 industries. This
by using KPIs. means 2 new functional areas and 15 new divisions, as
well as, 3 new industries with 18 new sub-sectors. The
To provide a glimpse into the use of KPIs in practice, 2016 reports unveil a significant number of new KPIs
The KPI Institute has launched its first edition of Top KPI that serve additional functions in the following areas:
reports in March 2011. The reports were dedicated to Accounting, Corporate services, Finance, HSSE, Human
analyzing the most popular KPIs across major functional Resources, Management, Online Presence-eCommerce.
areas and industries. The Top KPIs report series, have now The Top KPI Reports - 2016 Edition will also uncover
reached their third and improved edition, while reflecting new KPIs that are relevant to a meaningful number of
on the enriched experience of The KPI Institute’s editorial additional divisions in industries such as: Arts and Culture,
team in publishing such reports. Construction and Capital Works, Customs, Education and
Training, Financial Institutions, Healthcare, Hospitality
The hundreds of thousands of visits on smartKPIs.com and Tourism, Media, Professional Services, Real Estate,
and the thousands of KPIs visited, bookmarked and rated Sports Management and Utilities.
by members of the online community in these three years
Value added by Top KPIs Reports to practice
REPORT PURPOSE RESULT

CONTENT Enable learning Improved Performance
Best practices Measurement
Competencies
The Top 25 Human Resources KPIs – 2016 Extended successful customer focused strategy implementation.
Edition report compiles the most popular 25 KPIs used The documentation of KPIs compiles both academic
by global Human Resources divisions throughout 2009 insights and practitioner experience in working with
and 2015. The methodology used to advance this report these performance management tools.
consisted of ranking the KPI examples documented and
published on smartKPIs.com, based on the number of Furthermore, Top 25 Human Resources KPIs – 2016
views acquired in the period mentioned. The hundreds of Extended Edition provides a complete hands-on
thousands of visits to smartKPIs.com and the thousands experience in working with KPIs as it contains not only
of KPIs visited, bookmarked and rated by members of the 2 pages of detailed documentation for each KPI, but
online community in these six years provided a rich data also interesting articles on best practices in terms of KPI
set, which combined with further analysis from The KPI selection and documentation.
Institute’s editorial team, formed a basis for the hereby By emphasizing the use of KPIs today, The Top 25 Human
presented research reports. Resources KPIs – 2016 Extended Edition is a valuable
One of the most important benefits that this report resource for any professional looking to refresh an existing
brings is an international perspective on the most popular performance measurement system or to promote the use
Human Resources KPIs. They provide quantifiable of KPIs in the organization.
measurement of the main components that lead to a
Top 5 Human Resources KPIs 2009-2015
# Training hours per full time 2206

equivalent (FTE)
% Performance appraisals 2653
completed on time
% Employee turnover 3929
# Time to fill a vacant position 3931
REPORT
HIGHLIGHTS

SEC II ABOUT THE KPI INSTITUTE
The KPI Institute is a research institute specialized in business performance. It operates research programs in 12 practice
domains ranging from strategy and KPIs to employee performance and from customer service to innovation performance.
Insights are disseminated through a variety of publications, subscriptions services and through a knowledge platform
available to registered members. Support in deploying these insights in practice is offered globally through training and
advisory services.
Key Figures
ORGANISATION
2004 22 4
Year of establishment Research Analysts Offices around the globe:
Australia, Malaysia, Romania, United Arab Emirates
RESEARCH
49,280 20,603 12
Organizations assisted through KPI examples published on Years spent on researching
smartkpis.com smartkpis.com performance best practice
EDUCATION
6,240 4,408 4,596

Training hours delivered Client organizations Professionals trained
319 31 5
Education programs delivered Countries where we delivered Continents where we served clients
educational programs
The KPI Institute explores its practice domains from a holistic approach. In order to shape performance practices in the
business environment we build consistently on the following 10 pillars. The KPI Institute contributes to the development
of the 12 practice domains, by focusing not only on research, publications, learning programs and consulting, but also
on enhancing networking between professionals through online communities or business events and facilitating access
to relevant technology solutions.
Our Pillars
 Research  Events
The most comprehensive collection of resources, Conferences, forums and executive meetings
research studies and tools to enable organizations reaching globally that bring new trends and
to be always at the top of the game in their developments, industry best practices and the
industry. most innovating solutions in today’s business
environment.
 Publications
In-depth reports, articles and templates that  Benchmarking
enable you to keep up to date with industry Benchmarking studies that ensure you stay ahead
trends and leaders. of your competition, identifying opportunities to
maximize results.
 Learning
Specialized training programs meant to shed light  Awards
on the essential insights and practical tools that The KPI Institute recognizes customers and
improve business performance. partners that have excelled in driving business
value through several award categories.
 Certification
Certification Programs designed to support  Consulting
professionals to achieve business excellence in By embedding research outcomes and practical
12 different practice domains that range from experience from the business environment, The
strategic planning and performance management KPI Institute offers high quality advisory services
to data visualization and innovation. to guide organizations towards achieving their
ultimate vision.
 Networking
Access to a wide Community of Practice  Solutions
where professionals share their knowledge and Sustainable technology solutions to support
expertise. The KPI Institute provides the perfect business processes and ensure agility in working
environment to keep up with the latest trends and with data in today’s business environment.
events in the field of performance.

SMARTKPIS.COM COMMUNITY PROFILE
Since its launch in 2009, smartKPIs.com established itself as the favorite destination for professionals around the world
interested in high quality documented examples of metrics. With hundreds of thousands of page views and more than
79,000 members from 250 countries, smartKPIs.com is one of the most used performance measurement resources
online.
What sets the smartKPIs.com community apart is the profile of its members, as it is a truly global community, with
relatively uniformly spread representation in terms of membership around the world. While the highest number of
members come from English speaking countries, no single country dominates in terms of representation. The same
applies in terms of organizational size, as smartKPIs.com memberships are popular among small size companies (11-100
employees), but also across medium and large organizations (+10,000 employees).
 United States - 15.24%  United Arab Emirates - 3.53%  Malaysia - 3.72%

 Canada - 2.88%  Saudi Arabia - 3.45%  Australia - 6.69%
 United Kingdom - 5.29%  India - 12.28%  Other - 44.29%
 South Africa - 2.32%  Indonesia - 2.43%
9
4 7
10
2 6 8
1 3
Throughout 2013 and 2015, the smartKPIs.com.com community has experienced a growth of more than 30%. The increase
discloses a rising demand for performance measurement tools. The fascination with KPIs is also reflected in the increasing
number of views recorded by the site in the period afore-mentioned.
In terms of industry affiliation, the majority of smartKPIs.com community members operate in the Consulting industry. The
Information Technology and Manufacturing industries closely follow in the hierarchy, which reflects on the steadfast interest for
KPIs within these areas. Throughout 2013 and 2015, we can
Job Title
observe a substantial increase in the number of subscribers
affiliated to financial institutions, which almost match the
CEO 1.48%
number of subscribers from the manufacturing industry.
Student 2.69%
Organization size (by no. of employees)
Business analyst 4.50%
Self 7.95%
Director 7.01%
1-10 9.57%
HR manager 7.25%
11-100 20.19%
Consultant 7.50%
101-500 19.77%
IT manager 8.78%
501-1000 9.64%
Manager 26.64%
1001-5000 13.94%
Other 34.15%
5001-10000 5.58%
The breakdown for the subscribers’ job positions reflects
10000+ 13.20% a higher than average representation for Information
Technology and Human Resources managers, while
Industry affiliation community membership is dominated by managers,
consultants and business analysts. Overall, the community
Construction 2.32% profile of smartKPIs.com reveals a diverse and highly
qualified membership base.
Retail 3.36%
Engineering 3.44% Managerial role

Logistics 3.51%
Finance Manager 1.57%
Public Sector 3.53%
Project Manager 1.75%
Utilities 4.09%
HR Manager 7.57%
Healthcare 4.22%
IT manager 9.24%
Media 4.23%
Manager 27.17%
Telecommunications 4.53%
The analysis of smartKPIs.com community profile reveals
Professional Services 4.59% that positions like Strategy Manager or Performance
Education 5.20%
Management Officer are not yet very well legitimated
within organizations, in many cases these roles are
Others 8.22% assimilated by other positions. Only 0.2% and 0.7%
our members are officially occupying a strategy or
Financial Institutions 8.52%
performance management position.
Manufacturing 8.55%
Performance/Strategy Professionals
Hospitality 8.58%
Information 9.31% Strategy related

Technology job titles 0.70%
Consulting 11.88% Performance related 0.20%

job titles

2016 smartKPIs.com Functional Areas Taxonomy
16 Functional Areas with 64 Main Functions
Accounting (310) ÎÎ IT-General (53)
ÎÎ Cash Management (43) ÎÎ IT-Security (118)
ÎÎ Control (16) ÎÎ Network Management (60)
ÎÎ Cost analysis (51) ÎÎ Service Management (221)
ÎÎ Accounting Systems (39)
ÎÎ Planning and Reporting (71) Knowledge and Innovation (205)
ÎÎ Transactions/Accounts Payable/Accounts Receivable (90) ÎÎ Innovation (46)
ÎÎ Knowledge Management (71)
Corporate services (163) ÎÎ R & D (88)
ÎÎ Administration/Office Support (25)
ÎÎ Corporate Travel (28) Management (73)
ÎÎ Facilities/Property Management (76)
ÎÎ Legal Services (34) Marketing & Communications (238)
ÎÎ Marketing (168)
Corporate Social Responsibility (76) ÎÎ Public Relations (36)
ÎÎ Advertising (34)
Finance (236)
ÎÎ Asset/Portfolio Management (51) Online Presence - eCommerce (228)
ÎÎ Financial Stability (43) ÎÎ eCommerce (49)
ÎÎ Forecasts & Valuation (57) ÎÎ Email Marketing (25)
ÎÎ Liquidity (29) ÎÎ Online Advertising (34)
ÎÎ Profitability (56) ÎÎ Online Publishing - Weblogs (25)
ÎÎ Search Engine Optimisation (SEO) (25)
Governance, Compliance and Risk (181) ÎÎ Web Analytics (59)
ÎÎ Compliance and Audit Management (57)
ÎÎ Governance (65) Portfolio and Project Management (121)
ÎÎ Risk Management (59) ÎÎ Benefits Realization Management (11)
ÎÎ Portfolio Management (53)
HSSE (Health, Safety, Security and Environment (295) ÎÎ Project Management (57)
ÎÎ Environment (155)
ÎÎ Health & Safety (117) Production & Quality Management (212)
ÎÎ Security (23) ÎÎ Maintenance (39)
ÎÎ Production (96)
Human Resources (463) ÎÎ Quality Management (77)
ÎÎ Compensation and Benefits (53)
ÎÎ Efficiency and Effectiveness (49) Sales and Customer Service (320)
ÎÎ Recruitment (76) ÎÎ Customer Service (140)
ÎÎ Retention (29) ÎÎ Sales (180)
ÎÎ Service Delivery (35)
ÎÎ Talent Development (116) Supply Chain, Procurement, Distribution (468)
ÎÎ Workforce (55) ÎÎ Contract Management (51)
ÎÎ Working Environment (50) ÎÎ Inventory Management (93)
ÎÎ Logistics / Distribution (157)
Information Technology (616) ÎÎ Procurement / Purchasing (102)
ÎÎ Application Development (82) ÎÎ Supply Chain Management (65)
ÎÎ Data Center (38)
ÎÎ Enterprise Architecture (43)
*The figures in brackets represent the number of documented KPI examples available on smartKPIs.com as of 1st of January 2016.
2016 smartKPIs.com Industries Taxonomy
25 Industries with 96 divisions
Agriculture (308) ÎÎ Education (122) ÎÎ Recruitment / Employment Activities (55)
ÎÎ Crops (123) ÎÎ Finance / Treasury (26) ÎÎ Legal Practice (282)
ÎÎ Forestry and Logging (34) ÎÎ Healthcare (118) ÎÎ Business Consulting (84)
ÎÎ Livestock, Hunting and Fishing (150) ÎÎ Tourism (76) ÎÎ Accounting Services (32)
ÎÎ Transportation and Infrastructure (54)
Arts and Culture (432) ÎÎ Resources and Energy (52) Publishing (57)
ÎÎ Event Production and Promotion (26) ÎÎ Foreign Affairs and Trade (9)
ÎÎ Libraries and Archives (356) ÎÎ Human / Social Services (33) Real Estate / Property (187)
ÎÎ Museums (49) ÎÎ Employment and Workplace Relations ÎÎ Property Management (83)
(94) ÎÎ Real Estate Development (70)
Construction & Capital Works (102) ÎÎ Law and Justice (111) ÎÎ Real Estate Transactions (34)
ÎÎ Civil Engineering (29) ÎÎ Law Enforcement/Police (34)
ÎÎ Construction of Buildings (73) ÎÎ Communications, Multimedia and Resources (458)
Information (17) ÎÎ Coal and Minerals Mining (336)
Customs (246) ÎÎ Sports (16) ÎÎ Oil and Gas (66)
ÎÎ Border Protection and Enforcement (63) ÎÎ Sustainability / Green Energy (56)
ÎÎ Compliance and Risk Management (34) Healthcare (1573)
ÎÎ Customs Administration (32) ÎÎ Healthcare Support Services (37) Retail (160)
ÎÎ Immigration and Travel (35) ÎÎ Veterinary Medicine (7)
ÎÎ Revenue Collection (20) ÎÎ Medical Practice (299) Sport Management (144)
ÎÎ Trade Facilitation (62) ÎÎ Hospitals (1103) ÎÎ Coaching / Training (27)
ÎÎ Medical Laboratory (30) ÎÎ Sport Club Management (66)
Education & Training (738) ÎÎ Emergency Response / Ambulance ÎÎ Sport Event Organization (46)
ÎÎ Academic Education (258) Services (34)
ÎÎ Colleges and Universities (176) ÎÎ Preventive Healthcare (36) Sports (147)
ÎÎ Primary and Secondary Schools / K-12 (252) ÎÎ Pharmaceuticals (17) ÎÎ American Football (12)
ÎÎ Training and Other Education (43) ÎÎ Badminton (10)
Hospitality & Tourism (351) ÎÎ Baseball (29)
Financial Institutions (523) ÎÎ Food and Beverage Service (170) ÎÎ Basketball (19)
ÎÎ Banking and Credit (158) ÎÎ Hotel / Accommodation (140) ÎÎ Cricket (10)
ÎÎ Insurance (77) ÎÎ Travel Agency (41) ÎÎ Football / Soccer (27)
ÎÎ Investments (62) ÎÎ Rugby (10)
ÎÎ Mortgages (160) Infrastructure Operations (730) ÎÎ Tennis (32)
ÎÎ Pension Funds (66) ÎÎ Airports (344)
ÎÎ Ports (292) Telecommunications / Call Center (156)
Government - Local (866) ÎÎ Railways (26) ÎÎ Call Center (86)
ÎÎ General Local Administration (62) ÎÎ Roads (68) ÎÎ FTTX (27)
ÎÎ Public Services (174) ÎÎ Telecommunications (43)
ÎÎ Economic & Business Affairs (92) Manufacturing (99)
ÎÎ Public Safety (124) Transportation (687)
ÎÎ Social Services (143) Media (152) ÎÎ Airlines (515)
ÎÎ Budget and Finance (38) ÎÎ Broadcasting (TV and Radio) (59) ÎÎ Land Transport (Road & Rail) (510)
ÎÎ Culture, Recreation and Entertainment (41) ÎÎ Film and Music (45) ÎÎ Local Public Transport (374)
ÎÎ Community - Quality of Life (34) ÎÎ Social Media (45) ÎÎ Marine Transport / Shipping (246)
ÎÎ Environment (142) ÎÎ Taxi (39)
ÎÎ Sports (16) Non-profit / Non-governmental (519)
Utilities (613)
Government - State / Federal (919) Postal and Courier Services (295) ÎÎ Electricity (118)
ÎÎ Military, Security and Defense (21) ÎÎ Natural Gas (350)
ÎÎ General State Administration (87) Professional Services (495) ÎÎ Water and Sewage (145)
ÎÎ Agriculture, Fisheries and Forestry (49) ÎÎ Engineering (42)

SEC III KPIS…NATURALLY
Measurement as a human activity is not new. It emerged “New philosophy of performance, driven
in early history as a mean for discovery and sense making. by self-assessment and purposeful
Archaeologists consider the first measurement tool used
achievement as a mean to happiness.”
in human history to be the Lebombo bone, a baboon
fibula containing 29 cut notches. Dated 35,000 BC, this
tally stick was discovered in the Lebombo Mountains in
Swaziland. Is there a better way?
Evaluation, as a form of measurement was used as early as Yes, but it is not simple. It requires a change at multiple
the 3rd century AD, when emperors of the Wei Dynasty levels, from the underlying philosophy of performance,
rated the performance of the official family members. The to mentalities and processes. This is not easy. Over
biased nature of individual performance evaluation was time, the use of Key Performance Indicators (KPIs)
noticed by Chinese philosopher Sin Yu, who reportedly became synonym to performance measurement and
criticized a rater employed by the Wei Dynasty with management. KPIs are the link between the old and the
the following words: “The Imperial Rater of Nine Grade new in performance management. Their use, however, is
seldom rates men according to their merits, but always much richer and rewarding in an environment based on
according to his likes and dislikes”. organic performance architecture principles:
A major milestone in making the connection between Organizations are echo-systems in their own right.
measuring as a human activity and performance was in They vary in terms of maturity and the environment in
1494, when Luca Pacioli published in Venice ‘Summa de which they operate. As such, their use of performance
arithmetica, geometrica, proportioni et proportionalita’ management systems should reflect their own
(‘Everything on arithmetic, geometry, proportions and “personality”. You can try to build an igloo in Sahara, but
proportionality’). It detailed a practice the Venetian sailors it won’t be sustainable. The performance architecture of
had in place to evaluate the performance of their sailing each organization needs to be unique and to reflect its
expeditions, which became the basis of the double-entry internal and external environment.
accounting system. In time, the subjective nature of
individual performance evaluations and the dominance of Systems thinking provides a much richer context for
financial indicators for evaluating enterprise performance understanding and improving performance. Command-
became stepstones for performance management in and-control worked in time for the army, for increasing
human activities. The industrial revolution added to this productivity of unskilled workers during the industrial
combination the “organization as a machine” metaphor revolution and for managing large organizations (such
that played a major role in driving improvements as the public service). Today, knowledge workers form
in efficiencies and effectiveness. The result was an the majority of the workforce in developed economies,
organizational performance management model based operate in a much more interconnected environment
on mechanistic, command-and-control thinking, driven and have to make decisions at an accelerated pace.
by subjective individual performance assessments and Understanding the systems in which we operate,
financial indicators and crowned by pay for- performance analyzing flow and learning based on data become ever
arrangements. more important today and complement the traditional
simplistic managerial approach of executing orders from
Did it work? above.
To a certain extent, yes. Many organizations flourished KPIs should be used primarily for learning. The role
and matured based on this model. of KPIs should be the one of providing the required
information to assist in navigating towards the desired
Does it have flaws? results. The same principle is used by ants, who leave
Many. And while historical circumstances attenuated pheromone trails to assist each other in navigating
them in time, today’s environment amplifies and exposes towards the food source. Similarly, the nerve impulses
them at an accelerated rate. travel through the different points of the nervous system,
transmitting information. KPIs results should travel not be restricted to paper reports and computer screens
through the organization, facilitating communication, anymore.
providing a base for analysis / synthesis and ultimately
decision making across all levels of the organization. New philosophy of performance, driven by self-
assessment and purposeful achievement as a mean
Data accuracy in human administration is an elusive to happiness. While happiness means many things to
desideratum. Neils Bohr once said: “Accuracy and clarity of many, a common expression of this feeling is the result
statement are mutually exclusive”. Accuracy is a challenge of the purposeful achievement of a desiderate. Achieving
in exact sciences and even more in human administration. something we want, while shared with others, is about us
Striving to obtain any KPI data is a challenge in itself for and reverberates strongly in our inner self. Transposing
many organizations and data accuracy is an even bigger this powerful catalyst of performance in both our personal
ask. The use of KPIs should acknowledge this aspect and and organizational life is facilitated by a new paradigm:
be oriented towards making the most out of existent data, Happiness is driven by achievement. Achievement
oftentimes by using variance intervals. This approach is is an expression of performance. If we want to be in
used by the human body. If the temperature drops under control of our happiness, we should be in control of our
a safe limit, we shiver. If the temperature increases, we performance. Self-assessment of performance results is
sweat. Both are performance improvement initiatives of not easy. However, if more emphasis is placed on building
the body, aimed to regulate its temperature back to safe this capability in each employee, organizations can
limits. The KPI here is the temperature. While it is not a benefit by creating a rewarding environment conducive
constant, its trend is good when within certain safe limits. to happiness. In this environment, managers can focus on
understanding and improving the working system, while
The use of KPIs for rewards and punishment should employees can focus on self-assessment of the results’
be limited and driven by self-assessment. Purposeful achievement, learning and communicating. Purposeful
oriented behavior is a characteristic of living organisms. achievement of results in a well-structured working
For humans and many other species, this behavior is system would bring both individuals and organization
amplified by rewards and punishment. Along with this much closer to happiness and fulfilment compared to the
amplification, risks are amplified, too. Gaming of results, payment of bonuses in the current command-and-control
lack of cooperation, decreased morale and work accidents driven dominant paradigm.
are some of the undesired consequences. On the other
hand, the majority of nerve impulses in the human body
transmit general information. Only in particular situations
“KPIs are here to stay. The question we
pleasure or pain signals. Similarly, the use of KPIs for
rewards and punishment should be the exception to the
have to answer is how do we want to use
rule, rather than the norm. them: mechanistically or naturally?”
Embedding KPIs in organizations through visualization

and communication of KPIs results is the key to
maximizing their value added. Variations in the KPIs used
by the human body are felt by our senses as their impact
is sensory rich. Similarly, KPIs used in an organizational
context should be embedded in everyday use and be
Aurel Brudan
a part of the working experience. The most important Chief Executive Officer
aspect of communicating KPI results is their visual The KPI Institute
representation. This is key, both in terms of optimizing
the layout of the data representation and the presence
of visual displays in the working environment. The range
of media is diverse today: posters, whiteboards, banners,
LED and LCD monitors should be combined to bring
results to life across the organization. KPI results should

ABOUT KEY PERFORMANCE INDICATORS (KPIS)
In many domains of human activity, the usage of tools is In practice, the terminology used to express them is
essential for achieving the desired results. Measurement diverse. The most common expressions are: performance
and evaluation make no exception, being equipped with indicators, metrics, key performance indicators or key
both conceptual and physical tools. Of the first category, result areas. Both academic and practitioner literature
at the core of any performance measurement and use these terms interchangeably, oftentimes even within
management system are the Key Performance Indicators the same organization. This can cause confusion among
(KPIs) used. They provide the important data that is stakeholders, and it can also affect the way these tools
monitored and reported within an organization, by using are used in practice. Establishing a common terminology
scorecards or dashboards. at organizational level brings everyone on the same
page and facilitates a consistent approach to KPIs. To
bring more clarity in working with KPIs, The KPI Institute
recommends the following approach:
METRICS
 FOR MEASUREMENT
KEY PERFORMANCE INDICATORS KEY RISK INDICATORS

 FOR PERFORMANCE ASSESSMENT
 FOR RISK ASSESSMENT
ANALYTICS
 FOR DECISION MAKING
 METRIC
It has its roots in the word “metron”, used in ancient Greece to reflect measurement. Metrics refer to something
we can measure, a value, or a quantity. Examples of metrics are: # Air temperature, # Air quality, # Water depth,
# Height, # Weight or # Employees. When metrics reflect the achievement of a desired state, they become Key
Performance Indicators. Oftentimes, metrics represent the subordinated measures used for calculating a KPI.
 KEY PERFORMANCE INDICATOR (KPI)

A measurable expression for the achievement of a desired level of results, in an area relevant to the evaluated
entity’s activity. KPIs make objectives quantifiable, providing visibility into the performance of individuals, teams,
departments and organizations and enabling decision makers to take action in achieving the desired outcomes.
Typically, KPIs are monitored and communicated through dashboards, scorecards and other forms of performance
reports.
 KEY RISK INDICATOR (KRI)
A metric that provides an early warning regarding an increased risk exposure in a certain area of operations. For
example, a high level of % Clients experiencing financial difficulties can indicate the risk of not being able to
collect all debts and will negatively impact $ Write-off accounts. By monitoring KRIs, managers are able to take
a proactive approach in risk management by preventing incidents or diminishing their impact, when they occur.
 ANALYTICS
Consists in a data analysis of KPI results, meant to determine trends and data patterns in order to provide
valuable information for better decision making. Analytics offer a better understanding of how the business
works, and the interdependencies between KPIs. Predictive analytics can provide valuable insights in regards to
our customers’ purchasing habits, the best time to launch a product, or how internal processes can be optimized.
What are the main reasons you use KPIs in your organisation?
Improvement - objectively evaluate the level of results achievement 43%
Focus - outline what requires attention 18%
Clarity - provide a detailed numerical view of the desired results 17%
Engagement - generate a sense of results ownership through

nurturing responsibility and accountability 13%
Communication - convey key messages to internal and external

stakeholders 6%
Learning - facilitate a better understanding of the business 3%
The research conducted by the KPI Institute in 2015 on core operational processes. “Engagement” is the reason
the “State of Performance Improvement and KPIs” reveals 13% of professionals claim to be using KPIs for. This
the reasons KPIs are used in organizations worldwide. indicates the fact that the need to nurture responsibility
According to the data collected, “focus”, “clarity” and and accountability is partly addressed through the use
“improvement” are the main arguments that promote of KPIs, although it is not one of the main reasons KPIs
and justify the use of KPIs in various organizations. are used in business environments. An interesting finding
Most professionals – 43% - use KPIs in order to improve regarding the use of KPIs in organizations, is the faint
performance. emphasis placed on rationales such as: “communication”
and “learning”. Despite the need for constant feedback,
Two other significant reasons for KPI use are “focus” this shows that professionals are still facing difficulties in
and “clarity”, and they reflect on the desire to generate communicating results and using performance data in a
value by focusing on the important aspects of double loop learning process.
performance and gaining clarity into the organization’s

ADVICE ON KPI SELECTION
Choosing the right KPIs represents the basis for a successful performance management architecture. Given its paramount
importance for the performance management system, the KPI selection process is one of the most common challenges
professionals are facing in working with KPIs. Confronted with questions like “How can we measure the achievement of
this strategic objective?”, “How does a KPI look like?”, “How many KPIs should we have?”, “Where can we find examples
of KPIs?” or “How can I ensure a set of KPIs that is relevant for my business?”, professionals can easily get lured into a
KPI selection process were efforts are pointlessly wasted and poor results are produced.
Before embarking on the KPI selection journey, The KPI Institute recommends to have in mind the following guidelines:
 Internal research  External research

Start your KPI selection process by reviewing the existing Use external lists of KPI examples and other secondary
internal reports or other supporting documents, as well documentation to inform and support the KPI selection.
as, by using the documentation at hand. Previous business Reviewing KPI examples used by competitors or
or strategy plans, annual reports, performance reports other organizations in the industry or functional area,
and other documentation that relates to performance provides context to the practices of others and improves
management, measurement and benchmarking will be understanding of the way KPIs look like and the means
very helpful in understanding the current level of using used in working with them. Avoid selecting KPIs based on
metrics or KPIs in the organization, and sets a baseline to the argument that they are widely used in your business,
initiate discussion. A KPI selection process does not have and filter that list of popular examples through your
to put aside the metrics that are already used. It does not organizational strategy: do they make sense for what you
have to focus exclusively on bringing new examples, but want to achieve?
to combine the elements that proved effective in the past
with new perspectives.
KPI SELECTION
INPUT
ANNUAL COMPETITORS
 REPORTS  REPORTS
OPERATIONS ONLINE
 REPORTS  CATALOGUES
INTERNAL EXTERNAL
FRONT-LINE
 RESEARCH RESEARCH

 EMPLOYEES
 EXPERTS
INPUTS
BOARD AND
SUPPLIERS AND
 MANAGERS  CUSTOMERS
INPUTS
 Value drivers and business objectives manage the business, such as dashboards or scorecards.
By presenting the objectives, KPIs and performance results
For a relevant KPI selection it is essential to start the associated into some visual dynamic tool managers can
process by identifying what drives most value for the easily grasp the pulse of the business and take actions.
business and where resources are most worth invested.
The business strategy should be built around value drivers.  Context
KPIs serve as tools to monitor strategy implementation.
The realities of organizational activity and business
They are just one component of the value creation
environments should be embedded in your KPIs.
chain and of the performance management system. In
Each organization is different, operating in different
this context, KPIs should be directly liked to business
environment, with different guiding principles. Hence the
objectives. They create the connection between strategic
KPIs used need to reflect the specifics of each organization
objectives and actions (initiatives), and when KPI targets
first and industry/functional area characteristics second.
are not achieved, decisions must be taken to improve
results.  No measuring for the sake of
measurement
 KPI selection workshop
Some aspects may not be worth measuring or monitoring
This is the preferred format to deploy an effective selection
because they are not important, while others may be
process because it provides the adequate environment to
relevant for the business, but collecting data can be too
analyze all sources of information, as well as, brings key
costly. In both situations, it makes no sense to waste
stakeholders to the same table. It is important to involve
resources on gathering data that has no economic
KPI owners or even data custodians in the workshop, in
justification.
order to inspire stronger commitment towards the new
KPI framework. We can also have external stakeholders,  Regular review
namely, major clients, business partners, suppliers
contributing to the KPI selection. In this way, we can Check the KPI relevance regularly. If new KPIs are required,
ensure that all relevant inputs are considered. Information they can be established at any time. An essential aspect
coming from the external business environment can be of double loop learning is connected to using KPIs. It is
integrated into the workshop with no physical presence not only about achieving targets and objectives, but also
required from stakeholders. Inputs can be collected about ensuring the objectives and targets were the right
through an interview / discussion. ones to be set in the first place and the KPIs used to track
their achievement were the appropriate ones.
During this workshop, participants should be engaged
into applying different KPI selection techniques, such  An active KPI is better than an inactive
as, the value flow analysis, KPI balancing and clustering, KPI
in order to generate insights into the multiple facets of
If after more performance measurement cycles certain
measuring an objective or process. This event should
KPIs keep on being inactive due to various reasons:
also be explored as an opportunity to promote the use
infrastructure, technology or competence, it is better to
of KPIs within the entity, to consolidate a performance
eliminate of replace them. Instead of waiting to build the
management team and to educate stakeholders in
adequate system to measure # Customer satisfaction
managing performance.
index, you can start with a simpler KPI to monitor clients’
 Scorecards and Dashboards satisfaction like # Complaints received.
Consolidate the outputs of the KPI selection workshop

into hands-on tools that can be used on a daily basis to

KPI DOCUMENTATION GUIDELINES
The KPI documentation process is a comprehensive endeavor involving research, outline and analysis. A standardized
documentation form aggregates all relevant information in regards to measuring a KPI and sets the basis for a rigorous
and reliable data collection and reporting process.
Why use a KPI documentation form?
 STRUCTURES KNOWLEDGE  EDUCATES STAKEHOLDERS
As an instrument, the KPI documentation form is The existence of KPI documentation forms within
very effective in terms of knowledge management. an entity creates an internal library of KPIs, that
It captures the know-how, enables constant employees can access to learn how to collect data
updating, transfer and retrieval of information. or to better understand performance results.
 COMMUNICATES EFFICIENTLY  ACTIVATES DATA COLLECTION
Through a standardized template, communication Even if the content of a KPI documentation form
becomes more reliable and effective. It provides can vary from one entity to another, there are
the necessary guidance to measure a KPI and some critical pieces of information which are
ensures consistency from one data collection prerequisites for activating KPIs, such as KPI
period to another. definition, calculation formula and targets.
A research conducted by the KPI Institute in 2015 on the State of Performance Improvement and Key Performance
Indicators, reveals that over 40 % of organizations worldwide use a standardized form to document their KPIs. The State
of Performance Improvement and Key Performance Indicator Practice Report highlights findings from The KPI Institute’s
ongoing efforts of identifying the issues, trends and best practices impacting the field of performance management.
The survey was conducted at international level, and it involved the members of the KPI Institute Community,
which currently exceeds 79,000 professionals. As revealed by the chart below, the intense use of standardized KPI
documentation forms proves common practice for 41% of professionals, while 29% of them stated that they deploy this
tool in a moderate manner. 30% of respondents seem to be less familiar with standardized KPI documentation forms, as
they stated that they use this tool, in a small to very small extent.
Standardized use of KPI Documentation Forms
High or extended use of standardized KPI documentation forms 41%
Moderate use of standardized KPI documentation forms 29%
Minimal or no use of standardized KPI documentation forms 30%
Another study conducted by The KPI Institute in 2015, focused on analyzing over 50 examples of KPI documentation
forms encountered in practice, has identified more than 50 fields used in various configurations of this tool. The most
popular fields revealed by the study are listed in the graphic below:
Most popular fields
Name 55 The KPI Institute’s research outlines three prevalent

clusters of information commonly used in the process
Definition 41 of KPI measurement: KPI Definition, Targets and Data
profile.
Calculation formula 34
Data source (report / KPI Definition includes fields like KPI ID record, Name,
system) 27
Definition, Purpose and Variations.
Purpose 26
Threshold example 19 KPI Targets either includes specific targets, or thresholds

outlining above target, within range and below target
Related objective 17 intervals. The Targets section can also contain additional
information related to the target setting process.
KPI record 17
Overall notes 16 Data Profile outlines the data sources, accountability for
data, KPI limitations and reporting frequency.
Unit type 16
Most popular clusters of fields
Definition and KPI documentation forms ensure a standardized

variations 3
approach in working with KPIs and contribute to building
Targets 2 an organizational KPI library that is a valuable source of
knowledge in performance management. The value added
Data profile 2
by using KPI documentation forms relates to clarifying
the means and purpose for KPI measurement. Moreover,
it ensures accountability by setting data owners and
custodians for each KPI.

TARGET SETTING: FROM THEORY TO PRACTICE
Ask any retail consultant or sales agent about targets, and The implications of inadequate target-setting are
you will be bombarded with all the information they know immeasurable. Easy targets cannot be incentivizing
about them. Each of their daily routines revolves around enough to motivate performance. Stretch targets,
target achievement. With such positions, performance otherwise known as the targets pushing the boundaries
reviews are executed on a monthly basis, and targets are on what can realistically be achieved, can reach such a
designed to motivate and increase performance levels. high level of demotivation that they negatively impact
However, strenuous targets that aim for the stars can employee retention. Targets for control in many instances
often be the cause for stress and self-devaluation, when result in a dangerous combination of human greed and
they are repeatedly under-achieved. Setting targets might mechanistic behavior. Inappropriate targets can ultimately
be easy when you’re at the top, but does it make sense to harm customers and generate risks.
the ones at the bottom?
In order to avoid tunnel behavior, lack of ethics, or risky decisions, it is important to conduct an efficient target setting
process:
 Target setting  Using thresholds

Based on the company’s historical data, on benchmarking Instead of targets provides a more detailed image in
studies, and on market analysis can provide valuable regards to performance. By replacing inflexible digits with
information and reference points in determining the intervals, thresholds can relieve the pressures of unilateral
appropriate level of targets. results.
 Decomposing  Cascading targets

Long-term targets into short-term targets ensures a Gives employees accountability for growth both within,
step by step approach that guarantees a sustainable and together with the organization. Organizational
development path for the organization. alignment is paramount to the achievement of ambitious
company goals.
TARGET
SETTING
EXTERNAL ANALYSIS
 (MARKET TRENDS)
EXTERNAL
 BENCHMARKING
CONTEXTUAL
 ANALYSIS
IN SETTING
TARGETS INTERNAL
 BENCHMARKING
HISTORICAL
 RECORDS
 Targets should be longer. To keep employees motivated, it is important to

acknowledge and reward even smaller accomplishments.
Ambitious enough as to trigger motivation, as well as,
attainable, otherwise employees can get frustrated with  Setting targets
their repeated underachievement.
Is not a one-time event, it is a permanent process that
 Setting targets involves periodical reviews and target recalibration.
Adjustments should be made as often as necessary, in
For both individual and team KPIs significantly motivates order to ensure target relevance.
staff members to act cohesively for the delivery of results.
 Transparency
Although with performance management systems, target-
Works in favor of target acceptance. As long as employees setting can be a charming storytelling, it should not be just
have a clear understanding of what’s expected of them, a matter of theory crafting. Thinking of profitability when
they are more likely to perform well. setting targets does not necessarily lead to the desired
outcomes. If it comes to the point that stretch targets are
 Reward and recognition
necessary, they should be about human excellence and
Driven target-setting is the norm. Reward and recognition not solely about financial success.
platforms are major contributors to engagement
outcomes.
 Celebrate and reward

Even small achievements. Some targets, especially
stretch targets, may be very hard to achieve or might take

DATA GATHERING DIMENSIONS
Gathering data for KPI results is one of the most common challenges professionals face when measuring performance.
An effective data gathering process should not only provide timely performance data, but also high quality data.
Some of the main data gathering issues encountered by organizations are related to five main themes, namely:
 ACCURACY  CONSISTENCY
Indicates the extent to which data reflects on the Refers to delivering consistent data across
realities measured. Inaccuracy can be reflected by different reports. It implies a synchronization of
incorrect values, whether numbers or descriptive data across the organization.
data (gender, location, preferences etc.), as well
 UNIQUENESS
as, other information that has not been updated.
Points out that there should be no data
 COMPLETENESS
duplicates reported. Each data record should be
Refers to whether all available data is present. unique, otherwise the risk of accessing outdated
Unavailable data does fall short of completeness. information increases.
 TIMELINESS
Indicates whether the data was submitted in due
time, as per the data gathering deadline
 COMPLETENESS
 ACCURACY  TIMELINESS

DATA
QUALITY
 UNIQUENESS  CONSISTENCY
As the decision making process is significantly impacted by the performance data furnished in monthly reports, providing
unreliable information might severely damage the organization, by influencing key factors towards making the wrong
decisions. In order for the data gathering process to run smoothly, there are a few meaningful components to consider:
 Data custodians  Data gathering process map
Identify those employees who will become responsible for A flow chart will provide data custodians with a more
gathering the data. The profile of a data custodian should transparent data collection process, as well as, with clear
include hands-on measurement practice, KPI reporting deadlines for data availability.
abilities, technological skills (business intelligence tools
or Microsoft Excel), insights into the processes assessed,  KPI Documentation Form
access to data, as well as, an ethical commitment to This document will ensure consistency in the
preserving the integrity of data. Some companies may measurement of individual KPIs, by presenting details
choose to outsource data analysis expertise, while other such as KPI definitions, calculation formulas, data sources
organizations might choose to name data custodians and measurement limitations. A well-documented KPI
among existing employees. library will significantly impact the quality of the KPI
 Expertise measurement process.
For the majority of companies, hiring a specialist, such  Internal audit

as a data analyst, is not an option to be considered. As Periodical audits of the data gathering process identify
a consequence, these companies have to rely on the critical issues interfering with the quality of the
resources they already have. In this context, it is highly data produced. Addressing these issues leads to the
important for designated employees to be trained as improvement of the data gathering process.
data custodians. Developing this internal capability
can be done through several initiatives, varying from  Infrastructure
formal training events to internal learning and sharing
gatherings. A Data Custodian Community of Practice can Use technology in order to ensure an efficient data
help address different challenges by identifying the right gathering. Having automated processes improves both
solutions to these challenges. Participants can exchange the accuracy of data and its availability in due time.
experiences and come up with initiatives to improve the
current data gathering process.
The guiding principles hereby presented can aid the data gathering process by streamlining its main components and
providing reliable data for decision making.
PROCESSING
DATA

ENHANCING PERFORMANCE DATA THROUGH
VISUALIZATION
An analytic, data-driven organization will almost certainly use data visualization to enhance its performance reporting.
However, there is a certain complexity to data that requires its visualization to communicate simplicity and accessibility.
An art in itself, data visualization is not just about converting raw data into visuals, but also about structure and narrative.
Data visualization adds value to the performance reporting process when it manages to communicate the data in an
elegant, comprehensive manner. Proficient data visualization improves the performance reporting process by optimizing
the time required for data analysis and helping the user gain valuable insight into the decision-making process. When
inadequately done, it creates confusion and ambiguity rather than provide desired answers.
“Proficient data visualization improves the performance reporting process by optimizing

the time required for data analysis and helping the user gain valuable insight into the
decision-making process.”
 Tailor the visualization to the purpose

of the data
# Vehicles sold

The visuals that best convey performance data are the
395
ones that enable the stakeholders to easily gather the
information that they need. This is why designing visuals
with the purpose of the data in mind, is vital to any 261
internal and external analysis performed thereon.
171
 Be selective about the graphical
representation of data
The business intelligence environment of today supplies
users with an unprecedented number of data visualization
tools and techniques. Given the wide variety of charts,
scatter plots, box plots and histograms, it is oftentimes
strenuous to be selective about data visualization
elements and their layout. However, an adequate
representation of data will desist visual overload. At the
# Vehicles sold

same time, it will avoid a decorative visual design that 395
suppressed the true meaning of the data.
 Generate an effective visual design 261
With performance reporting, it is essential that visuals

171
complement the data gathered and not obscure it. Data
visualization is meant to best uncover and reflect on the
relationship between different data sets.
2005 2010 2015
Bar charts are a simple and discrete way to convey
ranking and comparison. Bar charts are the ideal tool for
the visual representation of performance data, especially
% Net Promoter score

because they are great in comparing values. M1 74%
M2 76%
Line charts are optimal for revealing trends over time.
With performance data, line charts provide a historical M3 72%
view on the most relevant key performance indicators,
by consolidating the reporting frequency (X axis) with the M4 69%
KPI results (Y axis). M5 51%
Dashboards are the preferred tools for performance data M6 49%
visualization. They make the best use of data to provide
an integrated view on an organization’s performance.
The flexibility in working with Dashboards allows for
the use of various graphic representations to reflect on
performance. The use of both bar charts and line charts

amplifies the meaning of the data by disclosing its multiple 74% 76%
patterns. While bar charts are better at establishing and 72%
69%
comparing values for different KPIs, line charts can be
extremely articulate in revealing KPI trends.
 Overcome the most common mistakes 51%

49%
in data visualization
One of the easiest ways to misrepresent data in a visual
rendition is by distorting the y-axis. In most cases, the M1 M2 M3 M4 M5 M6
y-axis should have a range starting from 0 to a maximum
that encompasses the range of the data. Although
appealing, the use of 3D graphs can sometimes lead to
the misinterpretation of data, especially if data labels
do not specify exact values. 3D bar charts can have a
negative impact on data readings. The color pallet used

to highlight important data, should subtly match the
semantic consistency of the content. High contrasts
and chaotic color encodings can be both tiresome and 80%
unattractive.
60%
 Perfect your data visualization
techniques 40%
Providing the user with a meaningful data visualization

20%
helps spread the message behind the vast data in the
background across and assist the viewer in reaching a
0%
quicker, strategic and, most importantly, correct decision.
The interactivity of dashboards enables users to access M1 M2 M3 M4 M5 M6
different data sets with ease, supporting timely decision
making.

DATA ANALYSIS
The digitalization of global information systems, has spawned large volumes of data that have gradually become more
difficult to manage. Having understood the characteristics of big data, the corporate world has been seen trying to
contain it and build on the opportunities of its inductive abilities. In practice, many organizations are facing challenges
like:
`` Too much data, losing sight of what is important;

`` Lack of expertise in processing the data;
`` Lack of insight into the true meaning of data;
`` Data gaming in presenting the data;
`` Resilient focus on past performance.
 Too much data  Lack of expertise in processing the

data
There is this common expression used to reflect on the
overwhelming effect of big data. “Drowning in data” is Working with numbers is not a job for everyone and, like
a phrase that many of today’s managers have become with any other practice domain, organizations need subject
acquainted with. One of the challenges in handling matter experts such as data analysts, or statisticians, to
large volumes of data is related to the right database provide quality data. Key quality dimensions of data are
management systems and business intelligence tools related to accuracy, completeness, timeliness, consistency
needed to compute big data. There are few companies and uniqueness. Specialists who can provide quality data
that own the right infrastructure to deal with big data may be difficult to find and expensive to hire, but they
issues, and the ones that do, should not forget about a can turn into a valuable investment for the organization.
well-articulated strategy to go with their technologies.
Just because one has the infrastructure to measure  Insufficient insight into the true
everything, it does not mean one should actually do so. meaning of data
A consistent strategy will assist management with making One can agree that numbers have the ability to reflect
use of only what’s essential and making use of the data on the objective reality of our business, but the way one
that really makes a difference. chooses to interpret and use those figures can widely
$ Sales
1000 567 678 896 3223 334 445 444 334 2345 2345 2356
January February March April May June July August September October November December
vary. In some cases, managers may not have the ability or An effective data management and analysis system can be
skill to ask the right questions and verify what lies beyond set up, despite all challenges but it needs to be connected
the numbers, in order to get a true understanding of to the organization’s value drivers, to the organization’s
what is happening. It is a dangerous trap not to question strategy. To avoid drowning in data, the strategy should
the underlying assumptions based on which data was be able to define what is important for the organization
generated. Just because data was produced by the latest through clearly articulated goals and objectives. To ensure
analytics model does not mean it is unquestionable. that objectives are reached, the company should identify
several KPIs for each objective. The latter refer to tracking
 Data gaming key processes within the organization that are conducive
While taking advantage of one’s lack of expertise, it seems to the successful achievement of the objectives set.
very easy to also manipulate data. One has no interest Scorecards and dashboards help validate the key figures
in presenting data that is not working in their interest, decisions are based upon, and they make it easier to
therefore it is important to ensure the reporting process verify the reliability of the data, as well as, to ensure a
is structured as such, that it enables the mitigation data proper KPI measurement and reporting process.
gaming risks. Reported data may be engineered to serve
one’s interests, but the person in charge with decision It is barely enough to design and implement a
making should have the ability to see beyond a beguiling performance management system. In the era of Big Data,
presentation. an organization must also develop the capability to work
with data. Key stakeholders need to be trained into how
 Resilient focus on past performance to collect data, how to report on data, how to analyze
Reporting is retrospective and many performance review and take decisions based on the information provided in
meetings have become an opportunity for managers performance reports.
to present the data they need to justify their actions. By blending in these components: a performance
There should be more interest towards moving forward, management system, the right technological infrastructure
towards planning next steps and identifying key areas of and an organizational capability that specializes in working
action that will ensure the progress of the organization. with data, one can see their organization overcome the
disillusion of the data mirage, while it proceeds to finding
and building on the true value of data.
# Customers
200 50 123 45 250 200 56 45 55 124 134 167
January February March April May June July August September October November December

KPI REPORTING
Reporting is an important stage in the performance management process, although managers can sometimes fall into the
trap of considering it as the end of the performance cycle. However, just reporting on performance data will not ensure
the improvement of results. Improvement is possible when decisions are made based on the insights provided by data.
Common issues in reporting are the overload of information, which makes it hard to focus on what is important, the
unavailability of information in due time or the inaccuracy of data.
By following these 10 pieces of advice, you can solve the above-mentioned problems, ensure a better reporting and,
consequently, improve the decision making process.
 Data timeliness  Report availability

Ensure data timeliness by clarifying the responsibilities of Send the performance report to all stakeholders at least
data custodians and the data gathering process. Sending 3 days in advance of the performance review meeting, in
reminders also helps in receiving data on time. order to ensure data is reviewed before the discussions.
 Data accuracy  Meeting agenda

Verify for data accuracy by requiring for raw data as well Inform all participants about the performance review
and analyzing it before compiling the report. Frequent meeting agenda and make sure you stay on topic, in
data audits ensure better accuracy. order to ensure the important issues are solved in due
time. Should you be interested in conducting efficient
 Side comments and effective performance review meetings, make sure to
Make sure performance results are accompanied by include topics such as:
comments. Data custodians should also provide the
`` Presentation of results;
context in which either high or low levels of performance
occurred. `` Discussions on the KPIs that are far from
reaching targets;
 Simple display
`` Analysis of the possible causes of
Display data in tables and graphs by maintaining a simple underperformance;
and appealing visual design of the report.
`` Review of the portfolio of initiatives;
`` Decisions upon the next steps.
REPORTING
Report compilation process

PROCESS
DATA
 REVIEW DATA
PROCESSED
CHECK DATA
QUALITY 
 DATA
ANALYSIS
COMMUNICATE
REPORT   GENERATE
REPORT
 Discuss results  Follow-up

Discuss the KPIs on red should with priority and identify Send a follow-up email with the meeting minutes and
the root cause of the problems. all initiatives established, along with their responsible
persons and deadlines.
 Find solutions
When it comes to KPI reporting, improving this process
Avoid finding responsible persons for poor performance.
represents the base of a better, more informed and
Instead, focus on finding solutions and assigning
efficient decision making process!
accountability to make sure the initiatives agreed upon
will be implemented.
 Stay on track
Keep it short, by assigning a meeting coordinator to keep
discussions on the right track! A performance review
meeting should not last for more than 2 hours.

SEC IV HUMAN RESOURCES FUNCTIONAL AREA
The Human Resources function was shaped by two main HUMAN RESOURCES PROFESSIONAL
movements. The first one is taking care of the welfare ASSOCIATIONS
of the workforce. For example, Welfare Officers were
`` Australian Human Resources Institute (AHRI)
introduced during the World War I in the UK factories. The
second one, generated in US in the early 1900s, developed `` Chartered Institute of Personnel and
based on the increasing demand for efficient working Development (CIPD)
practices within the highly mechanized factories. Human `` Human Capital Institute (HCI)
Resources term reflects a relatively modern management
concept, used for the first time in the 1960s. Its origins `` International Personnel Management
are shaped by the introduction of “welfare management” Association of Canada (IPMA – Canada)
practices and the “scientific management” principles in `` International Public Management Association
organizations. Mostly developed in the multinational and for HR (IPMA-HR)
international corporations’ context, Human Resources
became a frequently used term, defining a stronger
strategic approach to workforce management. Since then, and pressures within various working environments.
HR gained more significant influence within strategic Therefore, it is the Human Resource division’s core
management roles while being shaped into sophisticated attribute to ensure that relevant and innovative people
influential departments with board-level representation. policies, practices and systems are perfected, to the point
that the HR capability becomes the business partner that
The value of the Human Resources (HR) division within every company needs.
an organization, resides in its capacity to fulfill its role
as the primary enabler for human capital development Given the variety of functions that HR division serve in an
and sustainability. Building a sustainable workforce organization, a different set of KPIs is identified for each
today is a matter of developing manpower that can be of these functions. The 8 functions hereby presented
both responsive and flexible to complex challenges cover the most prominent facets of the HR division:
Sub-Divisions
Given the variety of functions that Human Resources divisions Workforce references job stratification and employee
serve in an organization, a different set of KPIs is identified distribution as part of an integrated performance
for each of these functions. The functions hereby presented management system.
cover the most prominent facets Human Resources divisions.
Compensation and Benefits capabilities capitalize on the KPIs distribution by sub-divisions
value of effectual reward systems.
Efficiency and Effectiveness divisions are concerned with
Workforce 3
the measurement of productivity achievement.
Recruitment teams monitor the overall effectiveness of Working Environment 2
the recruitment process. Talent Development 4
Retention triggers emphasis on employee satisfaction,
engagement and turnover. Retention 6
Talent Development focuses on brandishing human capital Recruitment 5
potential in a manner that it maximizes its contribution to
Efficiency and
the overall performance of the organization. effectiveness 4
Working Environment focuses on the consolidation of a Compensation and
productive working environment that harnesses workforce benefits
1
performance.
13
TOP 25 HUMAN RESOURCES KPIS OF 2009-2015
NO. KPI NAME DIVISION
sK1836 # Employee engagement index Retention
sK688 # Time to fill a vacant position Recruitment
sK1 % Employee turnover Retention
sK769 % Performance appraisals completed on time Efficiency and effectiveness
sK7 # Training hours per full time equivalent (FTE) Talent development
sK692 % Training penetration rate Talent development
sK5912 % Employee satisfaction Retention
sK194 # Management-to-staff ratio Workforce
sK1837 % Employee retention rate Retention
sK51 % Internal promotion rate Talent development
sK2 # Employment brand strength Recruitment
sK22470 # Supervisor to staff ratio Workforce
sK720 # Hours lost due to absenteeism Working environment
sK243 # Recruiter to open requisitions ratio Recruitment
sK52 % New hire failure Recruitment
sK2032 # Rookie ratio Workforce
sK53 % Job offer acceptance rate Recruitment
sK8 # Employee tenure Retention
sK1885 # Fringe benefits to basic salary ratio Compensation and benefits
sK6 $ Training investment per full time equivalent (FTE) Talent development
sK1951 % Paid-time-off (PTO) hours utilization rate Working environment
sK1835 # Employee commitment index Retention
sK2016 % Employee cost over sales revenue Efficiency and effectiveness
sK89 $ Human capital value added Efficiency and effectiveness
sK90 % Human Capital Return on Investment (ROI) Efficiency and effectiveness

TEMPLATE DESCRIPTION: PAGE 1
KPI 4 % Budget variance 1
2 Functional Areas Accounting 5 Industries Any

3 Sub-categories Planning and Reporting Sub-categories Any
4 KPI Record sK479 Tags budget
Description Calculation
6 Definition Measures the deviation between the actual 9 Subordinate metrics A = $ Realized budget
costs and the planned (budgeted) costs B = $ Planned budget
for the same period. It can be applied at
organizational, team, project or individual level. 10 Calculation formula [(A-B)/B]*100
7 Variations 11 Trend is good when Within range

% Deviation of planned budget
% Project budget variance
% Variance of project budget Data Profile
8 Related KPIs % Budget allocated for new initiatives 15 Data capture period Spot
$ Project deviation from planned budget
$ Capital renewal budget 16 Standard reporting Monthly
% Budgeted time against actual time frequency
17 Data collection Financial records
Focus method
12 Purpose To indicate the financial discipline 18 Limitations Up-to-date expense tracking is
in executing budgets. Can be used required to ensure reporting is
as a tool to control costs. accurate. Usually, there is a delay
between the end of the month
13 BSC perspective Financial and when reports are available, to
enable the closing of accounts.
14 Objective measured Maintain financial discipline
Targets
19 Threshold examples 20 Target setting notes
   Targets should be set according to the internal procedures

and standards. In the case of projects with large budgets, a
Red: +/- >15% Yellow: +/- (10- Green: +/- <10% deviation of +/- (5-10%) can be a large amount of money,
15%) so a +/- (3-5%) target is more appropriate.
Analysis and Resources

21 Overall notes 23 References
Budget deviation analysis is a direct mean of control of 1. City of Atlanta (2012), General fund: Budget variance
the company’s financial discipline in terms of budget analysis, available at: http://www.atlantaga.gov/modules/
execution according to the terms initially agreed upon. showdocument.aspx?documentid=4863
22 Additional resources 2. Parker, K. and Aird, B. (2013), Budget management and
ÎÎ http://www.gfoa.org/sites/default/files/GFR_
financial reporting, Old Dominion University, available at:
OCT_09_8.pdf
http://www.odu.edu/content/dam/odu/offices/finance-
office/docs/budget-management.pdf
1 Name: 13 BSC perspective:
Name of the KPI, a brief representation of its role. Standard Balanced Scorecard perspective where the KPI
2 fits best.
Functional Area:
Organizational capability or department that fulfils a
14 Objective measured:
specific business function. A sample objective that reflects on the organizational
purpose for the KPI being measured.
3 Sub-categories:
Sub-grouping of the industry or functional area.
15 Data capture period:
Period for which the results of the KPI have been
4 KPI Record:
measured.
Key performance Indicator (KPI) example unique
16 Standard reporting frequency:
identification number assigned automatically when
entered in the database. Frequency of reporting performance results for the KPI.
5 Industry: 17 Data collection method:
Aggregate of organizations operating in a particular field, The sources and techniques that support the data
often named after its principal product or service. gathering process.
6 Definition: 18 Limitations:
Succinct description of the KPI, clarifying its name in Other limitations (data or reporting system related) to be
business terms. considered during the use of the KPI.
7 Variation: 19 Threshold examples:
Other versions of the KPI name used in practice. Thresholds outlining the limits for positive and negative
results, as well as, the tolerance level.
8 Related KPIs:
20 Target setting notes:
List of other related KPIs in the database, either upstream
(influenced by this KPI), or downstream (with influence Additional information related to the target setting for
on this KPI). this KPI.
9 Subordinate metrics: 21 Overall notes:
Names of the metrics used in calculating the KPI (if General remarks about the use of this KPI.
applicable). 22 Additional resources:
10 Calculation formula: Other recommended online and offline resources for
Expresses the mathematical calculation of the KPI by use understanding and using this KPI.
of subordinate metrics. 23 References:
11 Trend is good when: List of resources reviewed as part of the documentation
Direction in which the results of the KPI need to progress, process.
for positive outcomes.
12 Purpose:
Explanation of the reason or business justification for
using the KPI.

TEMPLATE DESCRIPTION: PAGE 2
Scorecard Outlook 24
Perspective Financial
Strategic Objective Maintain financial discipline

Current
Performance reference reporting period Trend Target Results
results
Indicator number frequency results
% Budget variance sK479 M 4% 2%  2% 
Dashboard Outlook 25
KPI Results
% Budget variance % Budget variance
5% 5%
M1 5%
4% 4%
M2 5%
3%
M3 4%
2%
M4 3%
M5 4%
M6 2%
M1 M2 M3 M4 M5 M6
In Practice Recommendations 26
Planning is an essential part of financial management, as % Budget variance can be both positive and negative.
well as budget spending. Companies develop budgets The unfavorable variance that concerns organizations
as part of their financial strategy. However, progressing is indicated by positive results (such as +7%) because
towards desired company goals, while also maintaining they outline that expenses have exceeded the budget.
financial discipline is sometimes easier said than done. On the other hand, negative values (such as -7%) raise
Some recommendations on effectively managing budget questions about the accuracy of planning or reliability
spending include: of budget execution. There is an increasing interest for
budget deviations, as companies worldwide are more and
`` Linking budget to strategy; more concerned with budget execution and accuracy of
`` Efficient allocation of resources; forecast and planning.
`` The use of KPIs to track financial progress;
`` Connecting cost management to budget;
`` Streamlining cash flow processes;
`` Built-in flexibility for unexpected spending.
The novelty of the Top 25 KPI Reports – 2016 Edition is the second page of the documentation form which was specifically
developed to take the reader one step closer to an efficient KPI monitoring and reporting process. The second page of the KPI
documentation form is structured to befit the reporting requirements of any KPI. It is comprised of 4 sections which are intended
to provide guidance on KPI reporting, as well as, enhance the empirical use of KPIs in day to day life:
24 Scorecard Outlook: 26 In Practice Recommendations:

Positions the KPI within a Scorecard template that: For best KPI use, analysis and interpretation, the in practice
recommendations assist the reader with positioning the
1. Illustrates the perspective of the Balanced Scorecard
KPI in the real life context from whence it was harvested.
to which the KPIs should be assigned;
The second page of the KPI documentation form was
2. Accommodates a sample objective that best
especially designed by the KPI Institute to accommodate
summarizes the purpose of reporting on the KPI;
snapshots of the core performance management
3. Identifies the indicator as presented in the KPI tools, practitioners and professionals use in their day
Documentation form template; to day operations. The KPI results illustrated and the
4. Specifies the KPI Record number used to accurately outlooks depicted do not constitute reference for any
identify the KPI in the system; performance management practice, and are not meant
to provide a universal standard for reporting on KPIs.
5. Mentions the standard reporting frequency as The results and the outlooks presented can be regarded
recommended for best use; as a possible approach to consider when reporting
6. Reveals previous period and current results as reported on KPIs. They can be further used as a platform by
on by the data custodian; organizations who want to proceed in their development
of personalized performance management tools. Such
7. Emphasizes the KPI trend as illustrated by the tools provide assistance with monitoring and reporting
comparison between previous and current results; on performance, and it is essentials that they are properly
8. Mentions a sample KPI target as represented by the configured. The second page of the KPI documentation
desired results which are expected to be achieved; form helps readers visualize the KPI as reported on by
the performance management tools already in use today.
9. Illustrates target achievement by comparing current
results with the target level.
25 Dashboard Outlook:
Recommended data visualization models that best help
identify current values, historical values and KPI trends.

KPI 1 # Employee engagement index
Functional Areas Human Resources, Retention Industries Any
Sub-categories Retention Sub-categories Any
KPI Record sK1836 Tags engagement
Definition Measures the engagement level of employees Subordinate metrics A = # Employee engagement
in their work activities and responsibilities, Surveys assessing employee
in terms of enthusiasm, commitment and engagement are usually tailored
discretionary effort. to each organization. They use
structured questioning to assess
Variations # Employee engagement employee discretionary effort
Related KPIs # Intimidation, hazing, bullying or and whether they find their work
retaliation complaints received stimulating.
% Adherence to values and mission Calculation formula A, based on survey
Trend is good when Increasing
Focus Data Profile
Purpose To indicate the level of Data capture period Spot

engagement and commitment
Standard reporting Quarterly
of employees, as this impacts
frequency
turnover rates and leads to
superior customer service. Data collection Employee Engagement Surveys,
method Employee satisfaction Surveys,
BSC perspective Learning & Growth Employee appraisals, Internal
Objective measured Increase employee engagement assessments
Limitations The accuracy of data can be limited
by respondents’ subjectivity, as the
calculation of this indicator is based
on survey results.
Targets Analysis and Resources
Threshold examples Overall notes

There are studies that suggest employee engagement can
   be driven by various company efforts, such as facilitating
the development of skills for the employees, giving
Red: <75 Yellow: 75-95 Green: >95 them a sense of trust and integrity and clarifying their
opportunities for future career development.
Target setting notes
The threshold example is expressed in points (100 Additional resources
ÎÎ http://www.performancemagazine.org/employee-
maximum), and has just an exemplification purpose.
Organizations develop various scales to measure engagement-index/?
ÎÎ http://www.performancemagazine.org/employee-
employee engagement. Targets can vary from one
industry to another, depending on the employees’ profile. engagement-at-western-union-malaysia-
%E2%80%93-a-casest...?
References
1. Crabtree, S. (2004), Getting personal in the workplace, The Gallup Management Journal, available at:
http://govleaders.org/gallup_article_getting_personal.htm
2. Kenexa (2013), The many contexts of employee engagement, available at: http://www.kenexa.com/Portals/0/Downloads/
KHPI%20Papers/The%20Many%20Contexts%20of%20Employee
%20Engagement-2012%20WT%20Report_CS6.pdf
3. Vancity (2003), VanCity’s 2002-03 accountability report, available at: https://www.vancity.com/SharedContent/
documents/2002-03AccountabilityReport.pdf
Scorecard Outlook
Perspective Learning & Growth

Strategic Objective Increase employee engagement

Current
results
# Employee engagement
sK1836 Q 75 83  98 
index
Dashboard Outlook
KPI Results
78 75
73
Q1 73
Q2 78
Q3 75
Q4 83
Q1 Q2 Q3 Q4
In Practice Recommendations
Employee engagement is a very popular concept and employee turnover. Some compelling advice on
nowadays. With severe competition on most markets, enhancing and stimulating employee engagement can
human capital stands out as an important competitive easily be taken into consideration:
advantage. Employee engagement has three dimensions: `` Empowering employees to make individual decisions to
the cognitive, the emotional and the behavioral one. the highest level of influence pushed down on them;
The cognitive aspect refers to the employees’ beliefs `` Providing the employee with the necessary resources that
about the organization and working conditions. The enable them to perform their best at their work station;
emotional dimension covers how employees feel about `` Enhancing knowledge through regular coaching and
the organization. Employee behaviors deal with the training sessions;
value-added and discretionary effort they bring to work `` Developing innovative rewards and recognition programs
in the form of extra time, brainpower and task-oriented that keeps employees competitive about their work;
energy. Studies have proved that engaged employees `` Continuously measure and monitor the # Employee
perform better than modestly engaged employees, engagement index within the organization.
favorably impacting customer satisfaction, profitability

KPI 2 # Time to fill a vacant position
Functional Areas Human Resources, Retention Industries Professional Services
Sub-categories Retention Sub-categories Recruitment / Employment Activities
KPI Record sK688 Tags time, vacant positions
Definition Measures the average number of days Subordinate metrics Ai = # Time to fill position ‘i’,
between the moment when a job where i=1 to n
requisition is raised to when a new n = # Positions filled
employee fills the role.
Calculation formula (A1+A2+...+An)/n
Variations # Time to hire
Trend is good when Decreasing
Related KPIs # Employment brand strength
Focus Data Profile
Purpose To indicate the efficiency of the Data capture period Rolling average
recruitment process. Standard reporting Monthly
BSC perspective Internal Processes frequency
Objective measured Improve recruitment Data collection HR Data Records

method
Limitations Measurement requires data from
all recruitment projects, across
all teams and sections, which
can make the collection process
difficult to automate.
Targets
   Thresholds given have just an exemplification purpose.

Targets are very useful for recruitment managers to
Red: >60 Yellow: 40-60 Green: <40 establish expectations based on a reasonable level of
service. However, the lower the level, the better, as it
might affect the organization’s productivity.

Overall notes
It can be used by both Human Resources departments and References
recruitment agencies. For HR departments, # Recruitment 1. Parmesh, M. (2008), The need for new recruitment strategies,
lag time can be another relevant KPI, that measures the available at: https://www.onepetro.org/journalpaper/
time it takes to actually replace an employee. SPE-0202-21-TT
2. United States Office of Personnel Management (2009),
Additional resources Workforce reshaping operations handbook, available at:
ÎÎ http://www.performancemagazine.org/the-
https://www.opm.gov/policy-data-oversight/workforce-
sustainable-workforce-beyond-the-cost-of-an-unfilled- restructuring/reductions-in-force/workforce_resh...
vacancy/
3. Department of Personnel (2006), Washington State Human Resource Management Report, available at: http://www.hr.wa.
gov/SiteCollectionDocuments/Strategic%20HR/HRM%20Performance%20and%20accountability...
Scorecard Outlook
Perspective Internal Processes

Strategic Objective Improve recruitment

Current
results
# Time to fill a vacant
sK688 M 32 27  10 
position
Dashboard Outlook
KPI Results
# Time to fill a vacant position
M1 33 36 34
33 32
30 27
M2 36
M3 34
M4 30
M5 32
M1 M2 M3 M4 M5 M6
M6 27
Considered to be a leading indicator for $ Cost of `` Developing manpower that can be both responsive
hire, # Time to fill a vacant position can also be an and flexible with complex challenges and pressures
important tracker of jobs that are most challenging to within various working environments;
fill. The data provided by this indicator may encourage `` Recruiting advanced skills to undergo technological
the development of initiatives to tackle existent changes within industries that are continuously
recruitment challenges. The KPI is reviewed separately adapting to new market conditions;
for frontline and management/advisory/administrative/ `` Continuously supporting the younger generation to
technical positions, because of its different impacts on acquire the desired skills set in order to meet specific
recruitment costs and operational efficiency. Vacant job requirements;
frontline positions that are open for a long period of time `` Providing clear, professional paths and opportunities
can be the cause for remaining operators not meeting for advancement;
their schedule and load targets. Recruitment costs with `` Building a reliable set of succession plans to fill critical
management positions are higher, while specific technical positions in the organization.
and managerial skills make it difficult for the recruitment
process to be unsophisticated. Some recommended
advice on overcoming the challenges associated with
filling a vacant position include:

KPI 3 % Employee turnover
KPI Record sK1 Tags employees, loyalty, retention, turnover
Definition Measures the rate at which employees Subordinate metrics A = # Employees that left the
leave the organization in a given time organization by the end of the
period (e.g. month, quarter, year). reporting period
B = # Employees of the
Variations % Separation rate organization at the beginning
% Employees that leave the organization of the reporting period
in a given time period
Calculation formula (A/B)*100
Related KPIs # Net hire ratio
# Employee engagement index Trend is good when Within range
# Employee perceptions of external job
opportunities index
% Employees per department
Focus Data Profile
Purpose To indicate the level of employee Data capture period Quarter

satisfaction with the organization,
as an unhappy employee is more
frequency
likely to leave the organization.
Data collection HR Data Records
BSC perspective Learning & Growth method
Objective measured Increase employee retention Limitations Difficult to obtain accurate figures if
the HR systems are not enabled to
timely capture the data for this KPI.
Targets
   Targets may vary based on the industry profile and the

workforce trends on the market. A high turnover rate has a
Red: <5%; >30% Yellow: 5-10%; Green: 10-20% negative impact on business, due to the loss of knowledge,
20-30% the cost of replacing employees and the duration of the
replacement process. The positive impact of employee
fluctuation is the influx of new ideas, capabilities and
energy of the new employees.

Overall notes
This measure may be influenced by the HR department performance, the working environment and work policies,
the supervisor and team, as well as the promotion and professional development opportunities for the future. An exit
interview is a frequently used procedure that is applied by HR specialists in order to assess and avoid the causes that
determine a high employee turnover rate.
Additional resources
ÎÎ http://www.acas.org.uk/media/pdf/i/o/Managing_attendance_employee_turnover_(Oct_11)-accessible-versi...
ÎÎ http://www.nobscot.com/survey/surveyresults.cfm?id=2
References
1. International Public Management Association for Human Resources (2010), HR metrics benchmarking committee
report, available at: http://www.ipma-hr.org/sites/default/files/finalbenchreport.pdf
2. CPS Human Resources Services (2006), The turnover tool kit: A guide to understanding and reducing employee
turnover, available at:http://www.cpshr.us/workforceplanning/documents/ToolKitTurnover.pdf?
3. Fox, A. (2012), Drive turnover down, available at:
https://www.shrm.org/publications/hrmagazine/editorialcontent/2012/0712/pages/0712fox.aspx
Scorecard Outlook

Strategic Objective Increase employee retention

Current
results
% Employee turnover sK1 Q 10% 12%  15% 

Dashboard Outlook
KPI Results
% Employee turnover 12%
10% 10%
Q1 10% 9%
Q2 9%
Q3 10%
Q4 12% Q1 Q2 Q3 Q4
Company-wise, % Employee turnover, however debatable, is factors and many contrasting events:
also, expensive. Frequently overlooked, the lost productivity
cost, the cost associated with loss of sales and the lost `` Different companies in different industries either work
reputation cost, are often, unforeseen consequences of low with high turnover or low turnover; high turnover rates
retention rates. Experts argue that some of the negative are not always an indicator of loss, just as much as, low
impacts of high employee turnover rates can also include: turnover rates are not an indicator of gain;
routine disruption, direct turnover costs (recruitment and `` Companies with unstandardized task processes may
training) and demoralization of former colleagues, who suffer more from increased turnover, having that staff
now have to deal with losing an esteemed colleague or, members who perform their tasks in their own unique
otherwise, increased workload following the loss. On way - and that way benefits the company - can be very
the other hand, it is believed that high turnover rates are hard to replace;
something to profit from. New employees can inspire with `` High process conformance companies may suffer little
their fresh attitudes, can be highly motivated and can turn from high turnover rates, as knowledge associated with
into real brand energizers for the hiring company. All things standardized processes, can be more easily transferred
considered, % Employee turnover is a matter of multiple to new employees.

KPI 4 % Performance appraisals completed on time
Functional Areas Human Resources, Efficiency and Effectiveness Industries Any
Sub-categories Efficiency and Effectiveness Sub-categories Any
KPI Record sK769 Tags evaluation, performance
Definition Measures the proportion of employee Subordinate metrics A = # Performance appraisals

performance appraisals completed as completed on time
scheduled, from the total number of B = # Performance appraisals
performance appraisals.
Variations % Performance evaluations completed on time
Related KPIs % Peer review rate
% Performance appraisal participation rate Data Profile
% Employees performance plans
completed on time Data capture period Spot
% Performance review meetings held as
planned Standard reporting Monthly
frequency
Data collection Individual evaluation sheets
Focus method allow for human resources
divisions to assess the
Purpose To assess the efficiency and progress against performance
effectiveness of the performance appraisal completions within
evaluation process. the organization. They can be
complemented by behavioural
BSC perspective Learning & Growth assessments and individual
Objective measured Ensure continuous learning and performance scorecards that
development monitor individual progress
against organizational objectives
and goals.
Limitations Accurate reporting requires a well
Targets functional HR management system
to track performance appraisals’
Threshold examples status at any point. It does not
indicate the quality of evaluation
   processes.
Red: <75% Yellow: 75-90% Green: >90%
Target setting notes Overall notes
For compliance purposes, the achievement of the target At individual level, performance measurement through
set for this KPI is essential. While 100% is difficult to employee appraisals and reviews is one of the most
achieve due to staff leave, 90% achievement should be a commonly found HR management processes. Managers
minimum target. and HR coordinators assess periodically the performance
of employees using a structured process such as a formal
performance appraisal.
ÎÎ http://www.integratingperformance.com/pages/individual-level/analysis/
ÎÎ http://nciph.sph.unc.edu/accred/health_depts/materials/GuidanceDocument7-1-08.pdf
References
1. North Carolina, Office of State Personnel (2012), Evaluate your performance management process, available at:
http://www.osp.state.nc.us/Guide/PerformanceMgmt/evaluate.htm
2. Knight, R. (2011), Delivering an effective performance review, available at: https://hbr.org/2011/11/deliveringan- effective-perfor?
3. American National Standards Institute ?(2012), Performance management standards, available at:
https://www.shrm.org/HRStandards/Documents/Performance%20Management%20ANS%20(2012).pdf
Scorecard Outlook

Strategic Objective Ensure continuous learning and development

Current
results
% Performance appraisals
sK769 M 95% 93%  95% 
completed on time
Dashboard Outlook
KPI Results
% Performance appraisals completed on time
91% 95% 93%
M1 80% 80%
85% 89%
M2 85%
M3 89%
M4 91%
M5 95%
M1 M2 M3 M4 M5 M6
M6 93%
An individual performance review process is more easily Several tips on conducting performance appraisals can
conducted when it is based on an objective and coherent be mentioned:
evaluation. A sound assessment provides insight into
the progress of employees within the organization. `` Encourage open-minded conversations;
Regular appraisals ensure that feedback on individual `` Provide objective feedback based on actual results;
performance is embraced as a standard and necessary `` Avoid appraisal biases through 360˚ Review,
step towards professional integration and development. standardized Performance Evaluation Forms, regular
A standardized performance review process ensures that performance monitoring, benchmarking and uniform
performance appraisals are always completed on time, rating scales;
so that, the timeliness and integrity of the subsequent `` Ensure that the individual performance review process
processes in the evaluation process are kept intact. stays concise, measurable and focused.

KPI 5 # Training hours per full time equivalent (FTE)
Functional Areas Human Resources, Talent Development Industries Any
Sub-categories Talent Development Sub-categories Any
KPI Record sK7 Tags training
Definition Measures the training each Full Time Subordinate metrics A = # Training hours
Equivalent (FTE) receives in a given time B = # Full time equivalent staff
period.
Calculation formula A/B
Variations # Training hours per employee
Trend is good when Within range`
Related KPIs % Training compensation expense rate
% Training rate
% Participants in training programs from
underrepresented groups
Data Profile
Focus
Data capture period Month
Purpose To indicate the time and
resources invested in employee Standard reporting Monthly
development, learning and growth frequency
processes. Employees with Data collection A training needs analysis helps
less training are more likely to method identify the internal requirements
underperform. for employee training programs.
The individual performance data
BSC perspective Learning & Growth
collected through performance
Objective measured Ensure continuous learning and appraisals contributes to the
development assessment of internal training
needs for the organization.
Targets Limitations It is difficult for large organizations
to track all staff training programs.
Threshold examples The ability to monitor the number
of hours and number of participants
   for each training session is a
Red: <2; >8 Yellow: 2-4; 6-8 Green: 4-6 prerequisite of using this KPI. The
data source is usually the learning
or training management system
(database).
When setting targets, organizations should take into
consideration their business development strategy, Analysis and Resources
and compare required competencies to existing ones.
Benchmarking is common for this measure, generally within Overall notes
each industry. For example, in the consulting industry the How training needs are determined, how training is
average is 480 h/ year, with some companies reaching 600 viewed by employees and how training is delivered, all
h/ year. Average organizations should aim for 80 h/ year. inform the establishment and use of this KPI. Methods
for gaining knowledge, other than traditional classroom
training, like coaching and mentoring, may also be
considered as indirect forms of training. For example, new
employee orientation sessions are a significant
contributor to the fast integration of new recruits. The
usefulness of this KPI depends on the quality of training and its impact on workers’ abilities. Training enables better
employee performance. It contributes to employee skills development and provides them with the knowledge they need
to improve performance. Generally, training increases employee loyalty and retention. It also helps organizations attract
employees with interest in learning and development.
ÎÎ http://usnh.edu/banner/cheat-sheets/active/calculate%20FTE%20for%20Hourly%20&%20Salary%20Manual%...
References
1. Bartel, A. P. (n.d.), Measuring the employer’s return on investments in training: Evidence from literature, available at:
http://www0.gsb.columbia.edu/faculty/abartel/papers/measuring_employer.pdf
2. United States Office of Personnel Management(2018), Guide for collection and management of training information, available at:
https://www.opm.gov/policy-data-oversight/training-and-development/referencematerials/collection_ma...?
3. Miller, L. (2012), ASTD 2012 State of the industry report: Organizations continue to invest in workplace learning, available at:
http://www.astd.org/Publications/Magazines/TD/TD-Archive/2012/11/ASTD-2012-Stateof-the-Industry-Rep...
Scorecard Outlook


Current
results
# Training hours per full
sK7 M 3 2  5 
time equivalent (FTE)
Dashboard Outlook
KPI Results
# Training hours per full time equivalent (FTE)
M1 5
5
M2 3
3 3 3
M3 3
2 2
M4 2
M5 3
M6 2 M1 M2 M3 M4 M5 M6
In many respects, professional development is all about external services – workshops and training programs- and
investment. No matter their size, organizations that even less - 10% - on tuition reimbursements. Training
are dedicated to maximizing their learning and growth and development investments are not only reflected in
capacity, are more prone to investing in their employees. direct learning expenditures, but also in the # Training
According to the Association for Talent Development*, hours per full time equivalent as an indicator of the time
organizations spend most of their direct learning and resources invested in employee development.
expenditure -67% - on internal services, only, 27% on *Association for Talent Development (2013)

KPI 6 % Training penetration rate
KPI Record sK692 Tags training
Definition Measures the percentage of employees Subordinate metrics A = # Employees that have
that completed a form of training, out completed training programs
of the total number of employees within B = # Headcount
the organization.
Variations % Leadership training penetration rate
% Customer service training penetration rate Trend is good when Increasing
Related KPIs % Staff that received environmental training

# Time in training
Focus Data Profile
Purpose To monitor the extend of training Data capture period Month

programs across the organization.
BSC perspective Learning & Growth frequency
Objective measured Ensure continuous learning and Data collection Data can be maintained and
development method collected with the help of an
internal progress report against
completion of internal
training modules.
Limitations Accurate reporting requires a
well-maintained register of training
across the organization.
Targets
   Although a high result (close to 100%) is often the desired

level for this measure, especially for required training
Red: <50% Yellow: 50-90% Green: >90% courses, few organizations achieve such results.

ÎÎ http://www.mais.umich.edu/groups/download/hrms_
This KPI may be analyzed to identify areas with low training
penetration rates. Dimensions for such analysis may include piag_dec2009_counter_matrix.pdf
organizational unit, geography, job function, job family,
employment level, tenure, age, and performance rating.
References
1. American National Standards Institute (2012), Performance management standards, available at:
https://www.shrm.org/HRStandards/Documents/Performance%20Management%20ANS%20(2012).pdf ?
2. Office of Financial Management, State of Washington (2007), Activity inventory performance measure assessment, available
at: http://www.ofm.wa.gov/performance/assessments/docassessment.pdf
3. Bartel, A. P. (n.d.), Measuring the employer’s return on investments in training: Evidence from literature, available at:
http://www0.gsb.columbia.edu/faculty/abartel/papers/measuring_employer.pdf ?
Scorecard Outlook

Current
results
% Training penetration
sK692 Q 77% 78%  100% 
rate
Dashboard Outlook
KPI Results
% Training penetration rate 75% 77% 78%
73%
Q1 75%
Q2 73%
Q3 77%
Q4 78%
Q1 Q2 Q3 Q4
The success of training and development programs is `` Applying innovative solutions such as E-learning or
frequently measured in terms of the % Training penetration Mobile learning to training and development programs;
rate. For mandatory trainings, the indicator can be used `` Embracing social media tools to encourage learning
to monitor and ensure compliance with the company’s and development initiatives;
internal regulations. For optional training programs, the `` Adapting learning modules to functional areas and
KPI can be extremely useful when assessing the impact individual employees;
of the training awareness initiative. Recommendations `` Aligning training expectation with company goals and
on securing a valid % Training penetration rate within the objectives;
organization include: `` Measuring the impact of training and development
awareness initiatives.

KPI 7 % Employee satisfaction
KPI Record sK5912 Tags satisfaction
Definition Measures the employees’ satisfaction and Subordinate metrics A = % Employee satisfaction
motivation level with aspects regarding the job Surveys assessing employee
and working environment: job responsibilities, satisfaction are usually tailored
team and management, workplace and to each organization. They
professional development. use structured questioning to
investigate employee satisfaction
Variations % Satisfaction level among employees and dissatisfaction reasons and
% Average employee satisfaction whether they find their work
Related KPIs % Employee retention rate motivating.
# Employee complaints resolution timeliness
Calculation formula A, based on survey
% Performance rating distribution
# Physical work environment index Trend is good when Increasing
# Employee advocacy for products and services
# Employee advocacy for the organization as an
employer
Focus Data Profile
Purpose To indicate the level of satisfaction Data capture period Spot

and motivation of employees,
as high levels of satisfaction
frequency
lower turnover rates, leading to
higher performance and superior Data collection Internal surveys/questionnaires
customer service. method
BSC perspective Learning & Growth Limitations The accuracy of data can be limited
Objective measured Increase employee satisfaction data is based on survey results.
Targets

The threshold examples can be expressed as percentage or
  
points (100 maximum). HR managers use various scales to
Red: <60% Yellow: 60-80% Green: >80% measure employee satisfaction based on customized surveys,
and targets can vary from one organization to another. Younger
employees are usually more motivated towards their jobs and
work. Benchmarking of this KPI is not recommended, due to the
variety of questions used by organizations in their surveys.

Overall notes interesting analysis of employee satisfaction was
Studies suggest a direct correlation between employee published by Fortune Magazine in 1997. Based on a
satisfaction and increased performance regarding 820-store survey conducted by Sears to determine the
customer satisfaction, even on financial results. An impact of employee attitude on the bottom line, it showd
that improving employees’ attitudes with 5 point generated a 1.3 point improvement in customer satisfaction, which
further yielded an improvement in revenue by 0.5%.
ÎÎ http://dot.alaska.gov/comm/about/assets/DOT-Report-to-Staff.pdf
References
1. Kotulski, Z., Wasik, Z. and Dorozko, B. (n.d.), Employee is also a customer: How to measure employees’ satisfaction in an
enterprise?, available at: http://turing.tele.pw.edu.pl/~zkotulsk/Kotulski_Wasik_Dorozko.pdf
2. Saari, L. M. and Judge, T. A. (2004), Employee attitudes and job satisfaction, Human Resource Management, 43(4): 395-407,
available at: http://utm.edu/staff/mikem/documents/jobsatisfaction.pdf
3. Yee, R. W. Y., Yeung, A. C. L. and Cheng, T. C. E. (2008), The impact of employee satisfaction on quality and profitability
in high-contact service industries, available at: http://repository.lib.polyu.edu.hk/jspui/bitstream/10397/627/1/JOM%20
%28Accepted%29.pdf
Scorecard Outlook
Perspective Learning and Growth

Strategic Objective Increase employee satisfaction

Current
results
% Employee satisfaction sK5912 Q 85% 90%  95% 

Dashboard Outlook
KPI Results
% Employee satisfaction
90%
85% 83% 85%
Q1 85%
Q2 83%
Q3 85%
Q4 90%
Q1 Q2 Q3 Q4
Employee satisfaction is indirectly linked to higher `` Offering salaries and benefits that are comparable to
customer ratings, higher profitability and high quality other companies;
customer portfolios. Employee satisfaction is an important `` Promoting interpersonal relationships among employees
component of business sustainability as it reflects in (e.g., lunch, breaks);
lower turnover rates, more commitment and higher `` Offering a satisfactory working environment (e.g.,
individual performance. It is further correlated with # facilities and equipment up-to-date);
Employee tenure, % Employee turnover and # Employee `` Showing the employees that tasks are important and
commitment index, important human resources KPIs that meaningful to the overall process;
influence business growth. Some tips for increasing the `` Setting achievable goals and standards for positions;
satisfaction of employees include: `` Acknowledging good work immediately;
`` Setting clear company and administrative policies; `` Giving employees sufficient freedom and power to execute
`` Choosing the appropriate supervisor, who possess their task to make them feel they “own” the outcome;
leadership skills and treats all fairly; `` Rewarding the employees’ loyalty and performance with
advancement.
KPI 8 # Management-to-staff ratio
Functional Areas Human Resources, Workforce Industries Any
Sub-categories Workforce Sub-categories Any
KPI Record sK194 Tags workforce, management, staff
Definition Measures the ratio between the number of Subordinate metrics A = # Employees in management
employees in managerial positions and the positions (end of period)
headcount of the organization. B = # Employees (end of period)
Variations # Management span of control Calculation formula A/B
# Senior management / executives to
employees Trend is good when Within range
Related KPIs % Part-time employees Data Profile

% Managers who are women
# Board size Data capture period Spot
# Support staff to total staff ratio
% Healthcare professional staff Standard reporting Monthly
frequency
Focus Data collection Employee databases,
method Headcounts, HR Records
Purpose To assess the organizational
structure and optimize the Limitations Accurate reporting for this KPI is
hierarchical balance. dependent on a well maintained
register of all positions in the
BSC perspective Learning & Growth organization.
Objective measured Optimize workforce
Targets Overall notes
Management-to-staff ratio reflects the career path
Threshold examples development outlook, the organizational approach to
personnel management, being therefore an important
   indicator of HR cost containment. It should be calculated
Red: <0.1; >0.4 Yellow: 0.1-0.2; Green: 0.2-0.3 at organizational level as well as for each department
0.3-0.4 or functional area, not just for the whole organization.
Overall, there are various factors that can influence this
Target setting notes ratio: industry, organizational structure, combination of
job functions, approach to internal talent development
A high ratio can indicate that a particular department or and cost constraints.
division is top-heavy. For companies with many layers
of management, it may complicate communication and
lengthen response time for critical decisions. However, it ÎÎ http://www.aafp.org/fpm/2002/0900/p45.html?
may also reflect an organizational approach to employee
retention and development by providing staff with many References
managerial level opportunities. A low ratio generally reflects 1. Doran, D., McCutchen, A. S., Evans, M. G., MacMillan, K.,
a flat organizational structure, or the fact that a company is McGillis, L. H., Prongle, D., Smith, S. and Valente, A. (2004),
under-managed. However it may have negative effects on Impact of the manager’s span of control on leadership and
succession planning, as there are fewer opportunities to performance, available at: http://www.nursingleadership.org.
prepare the next generation of executives. uk/publications/doran2_final.pdf
2. City Auditor’s Office, City of Kansas City, Missouri (2002), Performance audit span of control, available at:
http://www.afscmestaff.org/2010legagenda-kc.pdf
3. Bugarin, A. (1997), Flattening organizations: Practice and standards, California Research Bureau, available at:
http://www.library.ca.gov/crb/97/04/97004.pdf
Scorecard Outlook

Strategic Objective Optimize workforce

Current
results
# Management-to-staff
sK194 M 0.2 0.1  0.25 
ratio
Dashboard Outlook
KPI Results
# Management-to-staff ratio
0.3 0.3 0.3
M1 0.3
M2 0.3 0.2 0.2
M3 0.3 0.1
M4 0.2
M5 0.2
M1 M2 M3 M4 M5 M6
M6 0.1
Depending on type and size, each organization is responsibilities, demand for supervision etc. The elements
responsible for finding the proper balance in its # that generally contribute to finding a suitable span of
Management-to-staff-ratio. While some organizations control include:
may find it suitable to have a 20:1 ratio, others may find a
5:1 ratio just as satisfactory. An effective # Management- `` Budget considerations;
to-staff-ratio will reflect on the most adequate distribution `` Workload assessmen;
of employees per manager or supervisor, while taking `` Team distributions;
into consideration all other factors that may contribute `` Staff turnover.
to that distribution: line of work, nature of tasks, entailed

KPI 9 % Employee retention rate
KPI Record sK1837 Tags retention
Definition Measures the total number of employees Subordinate metrics A = # Employees at a designated
retained at the end of the reporting period point in time
expressed as a percentage from the total B = # External hires after the
number of employees that were with the respective point in time
organization / department at the start or were C = # Terminations following the
employed during the reporting period. headcount point in time
Variations % Employee retention Calculation formula [(A+B-C)/(A+B)]*100
% Headcount
Related KPIs
Focus Data Profile
Purpose To provide an indication of the Data capture period Rolling average

organization’s / department’s
efficiency in keeping its
frequency
employees.
Data collection Employee Engagement Surveys,
BSC perspective Learning & Growth method Employee satisfaction Surveys,
Objective measured Increase employee retention Employee databases
Limitations The indicator doesn’t provide any
evidence regarding the cause
Targets source of any termination. If it
was influenced by employees or
Threshold examples employer actions or if it was a
result of both factors combined.
   Additionally, the indicator provides
Red: <90% Yellow: 90%-95% Green: >95% only an indirect evidence for the
organizational costs with turnover.
The threshold example has just an exemplification purpose. Analysis and Resources
The employee retention level is influenced by numerous
factors, the most important ones being the nature of the Overall notes
organization’s activity, industry type and characteristics, A low retention level or a high turnover level is usually
organization’s strategy and state of activity and external connected with low levels of efficiency, productivity
environmental factors such as macroeconomics and the and customer service from the organization which in
level of competition. the end can lead to a negative impact. Low retention
levels also lead to high vacancy costs. On the other
hand, low turnover levels might obstruct and inhibit
the development of a more innovative and creative
organization by encouraging career complacency and
failing to deal with poor performance.
ÎÎ http://workforceplanning.wi.gov/docview.asp?docid=1052
ÎÎ https://www.eeoc.gov/federal/retention.cfm
References
1. Retention Connection (2006), Links to Articles About Employee Retention, available at:
http://www.retentionconnection.com/view_articles_retention.php
2. Cooper, E. (2000), Job Stickiness & Employee Retention Rate, available at:
http://www.morebusiness.com/running_your_business/management/d952374028.brc
3. Ramlall, S. (2003), Managing Employee Retention as a Strategy for Increasing Organizational Competitiveness, available at:
http://www.xavier.edu/appliedhrmresearch/2003-Winter/MS%208_2_%20Ramlall.pdf
Scorecard Outlook


Current
results
% Employee retention
sK1837 M 77% 80%  98% 
rate
Dashboard Outlook
KPI Results
% Employee retention rate
90% 89% 95%
M1 84% 84%
77% 80%
M2 90%
M3 89%
M4 95%
M5 77%
M1 M2 M3 M4 M5 M6
M6 80%
The % Employee retention rate reflects on the efforts that instead of based on the seniority in the organization;
a company puts into sustaining a working environment `` Offering bonuses based on the performance achieved;
that will stimulate employees to remain with the company. `` Investing in the training, education and development of the
Common retention policies focus on the isolation of employees;
recurring retention issues, through the development `` Designing training programs which are customized for each
of customized retention programs that best suit each individual employees’ career progress within the company;
company. Retention programs are part of a useful long- `` Promoting independence and the goal-setting method to
term strategy that uncovers solutions to various retention employees in the execution of a task;
predicaments within the organization, while also helping to `` Giving continuous feedback on clear goals;
reduce turnover costs. Some practices to consider in order `` Developing the talent management skills of the line
to secure better and effective employee retention include: management to better direct, guide and evaluate the
`` Forming a promotion system that is based on performance employees.

KPI 10 % Internal promotion rate
Functional Areas Human Resources, Recruitment Industries Any
Sub-categories Recruitment Sub-categories Any
KPI Record sK51 Tags promotion, recruiment, employees
Definition Measures the rate at which open positions are Subordinate metrics A = # Open roles filled through
filled through internal promotions within the internal promotions
organization. B = # Open roles filled
Variations % Open roles filled through internal Calculation formula (A/B)*100
promotions
Trend is good when Within range
Related KPIs
Focus Data Profile
Purpose To evaluate the ability of the Data capture period Quarter

organization to grow internal
talent capable of filling different
frequency
roles.
Data collection HR Data Records, Organizational
BSC perspective Learning & Growth method charts, Succession Plans
Objective measured Ensure continuous learning and Limitations Strict monitoring of recruitment
development details is required, to ensure
accurate data is reported for this
indicator. A certain level of maturity
of HR management systems is a
prerequisite.
Targets
   Threshold has just an exemplification purpose, as targets

vary from one company to another. When filling different
Red: <15%; >75% Yellow: Green: 30-60% positions, organizations can select internal candidates or rely
15-30%; 60-75% on external hires. Both types of candidates offer different
benefits for the organization. However, internal promotions
have the power to be more successful because there is
more information available to make accurate decisions.

Overall notes
Measuring promotion rates along with other human Additional resources
ÎÎ http://www.msubillings.edu/BusinessFaculty/larsen/
capital metrics, such as time-to-fill, recruiting costs and
performance effectiveness of promoted candidates once MGMT321/Recruiting%20-%20internal%20v%20
they are in new positions, helps to determine if promoting external%2...
from within yields a return on investment.
References
1. Byham, W. C. and Bernthal, P. R. (2012), The case for internal promotions, available at:
http://www.ddiworld.com/DDIWorld/media/white-papers/thecaseforinternalpromotions_wp_ddi.pdf?ext=.pdf
2. Straka, L. (2010), The impact of training on the frequency of internal promotions of employees and managers, available at:
http://digital.library.unt.edu/ark:/67531/metadc30526/
3. Bayo-Moriones, A. and Ortin-Angel, P. (2006), Internal promotion versus external recruitment: Industrial plants in Spain, Cornell
University, available at: http://digitalcommons.ilr.cornell.edu/ilrreview/vol59/iss3/7/
Scorecard Outlook


Current
results
% Internal promotion rate sK51 Q 49% 53%  50% 
Dashboard Outlook
KPI Results
% Internal promotion rate 53%
49%
Q1 40%
38% 38%
Q2 40%
Q3 49%
Q4 53%
Q1 Q2 Q3 Q4
M5
M6
Customer satisfaction with service levels stems from service levels of any kind. Some standpoints to consider
the level to which the company’s services correspond in this process include:
with the customer’s expectations. When associated
with customer service, customer satisfaction relates to `` Customer needs and expectations;
effectively managing customer concerns by providing `` Customer priorities;
the best possible solutions to their problems. This `` Customer patience levels;
customarily intertwines with waiting times, complaints `` The workload and satisfaction of employees;
handling approaches, transfer rates and resolution `` The company’s business goals, objectives and core
outline. Working on objectively evaluating, measuring,
values.
reporting, improving and optimizing these aspects, will
certainly contribute to raising customer satisfaction with

KPI 11 # Employment brand strength
KPI Record sK2 Tags employment, brand, attractiveness
Definition Measures how desirable an organization Subordinate metrics Index of various measures such as:
is as a place to work among employees - Internal perception of the
and job seekers, according to an index employment offer;
based on survey questions and/or - Closeness of the employment
quantitative metrics. perception to reality;
- External perception of the
Variations # Employment brand strength by age group employment offer;
# Employment brand strength by - Media coverage or other external
employment type coverage of the organization and
Related KPIs % Internal promotion rate its employees.
# Time to fill a vacant position Calculation formula Index of survey results -
standardized.
Focus Data Profile
Purpose To assess the attractiveness of the Data capture period Spot

organization’s employment value
Standard reporting Annually
preposition.
frequency
BSC perspective Learning & Growth Data collection Employees and job applicants
Objective measured Improve recruitment method surveys, External media sources,
Employer brand studies
Limitations The data for this measure is
Targets gathered by collating responses
to one or more questions from
Threshold examples employees and job applicants
surveys. In addition, externally
   produced documents - such as
media stories - may be used in
Red: <6 Yellow: 6-8 Green: >8
calculating the index. Thus, the
measurement approach varies
Target setting notes across organizations and data
accuracy is limited.
Targets will depend on the scale used for the responses
to the questions in the survey. This indicator can be very
important for organizations with low levels of employee Analysis and Resources
engagement, a high turnover or low acceptance ratio of Overall notes
employment offers. A strong employment brand can help
organizations attract and retain talent. Data collection depends on the effectiveness of the
indexing methods and survey design and delivery. All
survey measures represent employee perceptions at a
point in time and can reflect temporal events.
ÎÎ http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=56D8B90FC62CC9E0C74FCF020B7FED
4D...https://digitalpeople.blog.gov.uk/2015/03/05/the-employee-value-proposition-employer-branding-andam...?
References
1. Bernard Hodes Global Network (2006), Global employer brand study: A two-phase research initiative among HR
professionals from 25 countries, available at: www.kommunikationsforum.dk/file.asp?id=3869
2. Chartered Institute of Personnel and Development (2008), Employer branding: A no-nonsense approach, available at:
http://www.cipd.co.uk/NR/rdonlyres/D0AC3CB0-BC5F-44F5-886D-4C00276F2208/0/empbrandguid.pdf
3. Brussalis, C. W. (2001), Employment brand as an attraction and retention strategy, available at:
http://www.workforce-strategy.com/EmploymentBrandPresentation.pdf
Scorecard Outlook


Current
results
# Employment brand
sK2 Y 3 2  10 
strength
Dashboard Outlook
KPI Results
# Employment brand strength 4
Y1 4 3 3
2
Y2 3
Y3 3
Y4 2
Y1 Y2 Y3 Y4
Human resources departments are oftentimes attributed `` A larger talent pool for recruitment;
the perception of employment brand. However, the `` Higher opportunities for hiring qualified professionals;
responsibility of the employment brand befalls not only the `` Greater visibility on recruitment sites and social media pages;
human resources personnel. It is also the company’s strategic `` Increased likeliness of high-quality referrals;
approach to employment, engagement and retention that `` Improved brand image and higher professional ranking.
develops # Employment brand strength. Developing a
strong employment brand strength provides:

KPI 12 # Supervisor to staff ratio
KPI Record sK22470 Tags supervisor, employees
Definition Measures the ratio between the number
of supervisors and the headcount of the Subordinate metrics A = # Employees
organization. B = # Supervisors
Variations # Supervisor to employee ratio Calculation formula A/B
Related KPIs # Span of control Trend is good when Within range
Focus Data Profile
Purpose To assess the number of Data capture period Month

employees each supervisor has
under control.
frequency
BSC perspective Learning & Growth Data collection Employee databases,
Objective measured Optimize workforce method Headcounts, HR Records
Limitations Accurate reporting for this KPI is
dependent on a well maintained
register of all employees in the
organization and their supervisors.
Targets
Thresholds given have an exemplification purpose only.
   An optimal supervisor to staff ratio allows managers to
Red: Yellow: 3.1-5.1; Green: 5.1-7.1 effectively supervise employees. Insufficient supervision
<3.1; >10.1 7.1-10.1 can lead to morale problems, burnout, costly errors and
scandals.

Overall notes
There is no ‘ideal’ ratio of line employees to administrative Additional resources
and supervisory staff that can be applied across all ÎÎ http://www.aafp.org/fpm/2002/0900/p45.html
organizations, divisions, or even across functions.
Numerous factors affect the optimum ratio, including: *The
mission of the organization; *The type of service or product References
produced; *The complexity and sensitivity of the work; 1. Utah Department of Human Resources (2007), Workload
*The management style of top executives; *The proximity study: Part B - Supervisor/staff ratios, available at:
of employees to each other and to their manager; *Legal http://www.hsdcfs.utah.gov/documents/Supervisor-
requirements; *The consequences of error. StaffRatiosReportFinal--112107.pdf
2. Bugarin, A. (1997), Flattening organizations: Practices and
standards, California Research Bureau, available at:
http://www.library.ca.gov/crb/97/04/97004.pdf
3. Doran, D., McCutchen, A. S., Evans, M. G., MacMillan, K., McGillis, L. H., Prongle, D., Smith, S. and Valente, A. (2004), Impact of
the manager’s span of control on leadership and performance, available at:
http://www.nursingleadership.org.uk/publications/doran2_final.pdf
Scorecard Outlook


Current
results
# Supervisor to staff ratio sK22470 Q 8.0 7.8  5.5 
Dashboard Outlook
KPI Results
# Supervisor to staff ratio 7.9 8.1 8.0 7.8
Q1 7.9
Q2 8.1
Q3 8.0
Q4 7.8
Q1 Q2 Q3 Q4
Allocation of employees to supervisory staff is an effective internal communication and coordination. A few
important component of workforce distribution. The # factors to be considered in determining the most suitable
Supervisior to staff ratio is also an indicator of the span span of control for the organization include:
of control within the organization. A wide span of control
relates to the distribution of a large group of employees `` Organizational size, profile and structure;
for every supervisor, whereas, a narrow span of control `` Complexity of tasks and activities;
tipically implies the opposite. The optimal span of control `` Monitoring and coaching demands;
has to take into consideration the organizational size and `` Supervisor experience and expertise.
structure. An adequate # Supervisor to staff ratio facilitates

KPI 13 # Hours lost due to absenteeism
Functional Areas Human Resources, Working Environment Industries Any
Sub-categories Working Environment Sub-categories Any
KPI Record sK720 Tags absenteeism, time
Definition Measures the volume of time lost due to Subordinate metrics Ai = # Hours lost due to
absence from the workplace or from a duty absenteeism for employee ‘i’,
or obligation. It can also be reported as where i=1 to n
percentage of total scheduled working hours. n = # Employees
Variations # Hours lost because of absenteeism Calculation formula (A1+A2+...+An)/n
Related KPIs # Absent days per employee during Trend is good when Decreasing
peak operational periods
Focus Data Profile
Purpose To indicate the impact of Data capture period Month

absenteeism on the working hours.
BSC perspective Learning & Growth frequency
Objective measured Increase employee productivity Data collection Employee attendance records,
method Recording attendance tools
Limitations For an accurate reporting, a
well organized database with all
employees and their hours lost is
required.
Targets
   Targets depend on the organization’s size, type of business

and internal policies regarding absenteeism.
Red: >15 Yellow: 10-15 Green: <10

Overall notes References
High levels of hours lost due to absenteeism can have a 1. Saritha, S. (2013), A study on employee absenteeism
direct impact on productivity within an organization. on Sagar Sugars and Allied Products, Chittoor,
International Journal of Computer Science and
management Research, 2(4): 2138-2148, available at:
ÎÎ http://www.hcp.med.harvard.edu/hpq/ftpdir/ http://www.ijcsmr.org/vol2issue4/paper331.pdf
absenteeism%20presenteeism%20scoring%2050107.pdf 2. Circadian (2005), Absenteeism: The bottom-line killer,
ÎÎ http://www.unilorin.edu.ng/publications/babaita/ available at: http://www.workforceinstitute.org/wp-
The%20Effect%20and%20Measurement%20of%20 content/themes/revolution/docs/Absenteeism-Bottom-
Workplace%20... Line.pdf
3. Office for National Statistics (2014),
Full Report: Sickness Absence in the Labour Market, available at:
http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/ons/dcp171776_353899....
Scorecard Outlook

Strategic Objective Increase employee productivity

Current
results
# Hours lost due to
sK720 M 14 19  5 
absenteeism
Dashboard Outlook
KPI Results
# Hours lost due to absenteeism
M1 17 19
17 18
M2 15 15 14
13
M3 13
M4 18
M5 14
M1 M2 M3 M4 M5 M6
M6 19
Absenteeism has a significant impact on company Some recommendations on reducing the costs associated
costs, bottom line earnings, staff productivity, employee with absenteeism include:
morale and profit margins. Organizations that face high
absenteeism rates are prone to disruption due to the `` Efficiently measurement and monitoring of hours lost
fact that they frequently have to deal with shortages due to absenteeism;
in manpower, over-utilization of remaining staff, costly `` Standard policies and procedures on absenteeism;
replacement of workers and headcount increases. The `` Process mapping and automation;
indirect costs of absenteeism can translate into: increased `` Absence management technology.
turnover, substandard quality for products and services,
as well as, reduced ability to meet customer demands.

KPI 14 # Recruiter to open requisitions ratio
Functional Areas Human Resources, Recruitment Industries Professional Services
Sub-categories Recruitment Sub-categories Recruitment / Employment Activities
KPI Record sK243 Tags staff, recruitment
Definition Measures the ratio between the number Subordinate metrics A = # Recruiters with allocated
of recruiters and the number of open job open job requisitions
requisitions, as an expression of workload. B = # Open job requisitions
Variations # Recruiter requisition load Calculation formula A/B
# Requisition load for a recruiter
# Requisition (req) load Trend is good when Within range
Related KPIs
Focus Data Profile
Purpose To indicate recruiters’ workload Data capture period Spot

and the balance between the
volume of the open requisitions
frequency
and the number of recruiters
available. Data collection Internal employee databases, HR
method Data Records
BSC perspective Internal Processes
Limitations Measurement requires functional
Objective measured Improve recruitment HR systems to capture data on all
recruiters and requisitions handled
at any point in time.
Targets Analysis and Resources
Threshold examples Overall notes

This is a popular KPI for large companies that make
   constant hires and have open requisitions throughout
the year. It assists in monitoring the number of recruiters
Red: >0.5; <0.1 Yellow: Green: 0.2-0.3 to ensure it is suitable and triggers decisions to increase
0.1-0.2; 0.3-0.5 or decrease it, in accordance with workload variance
over time. Another important question to be analyzed
is “What’s the average number of requisitions handled
There are several factors that impact requisition load, such as: per recruiter for a specific industry?” This is based on
- The type of candidates targeted; what type of positions are being filled (exempt or non-
- The type of sources used and the resources that are exempt), the level of experience and what competencies
available to recruiters; and skills are required for the open positions. The target
- The roles and responsibilities recruiters are expected to handle; for this KPI depends on the recruiting structure and
- The type of job involved; processes currently in place. In addition, it depends on
- The characteristics of the firm, the industry and the economy; the recruiter’s role and responsibilities performed on a
- When determining requisition loads it is important to look daily basis. It should be considered whether recruiters
at a variety of factors in making the final are involved in workforce planning, sourcing, screening,
determination of what is appropriate. applicant tracking data input and scheduling interviews.
ÎÎ http://www.staffing.org/library_ViewArticle.asp?ArticleID=440
References
1. Doig, D. (2006), The Baker’s Dozen-Recruitment Process Outsourcing. HRO Today, Vol. 5, No. 6, available at:
http://www.hrotoday.com/content/1350/bakers-dozen-recruitment-process-outsourcing
2. MBA Career Services Center, Michigan State University (2008), Human Resource Careers, available at:
http://mba.msu.edu/newsletter/FunctionalPortfolioHumanResources.pdf
3. Oracle (2007), Product Marketing Oracle Corporation, available at:
http://www.authorstream.com/Presentation/Aric85-28342-40158-Mohindroo-Why-Integration-Segments-Examp...
Scorecard Outlook
Perspective Internal Processes

Current
results
# Recruiter to open
sK243 M 0.3 0.4  0.2 
requisitions ratio
Dashboard Outlook
KPI Results
# Recruiter to open requisitions ratio
M1 0.4 0.7
M2 0.7 0.5
0.4 0.4
M3 0.5 0.3
0.2
M4 0.2
M5 0.3
M1 M2 M3 M4 M5 M6
M6 0.4
As an expression of workload, the # Recruiter to open `` The time recruiters dedicate to analyzing and selecting
requisitions ratio helps an organization assess the efficiency the right candidate profiles;
and effectiveness of its recruitment processes. Finding the `` The frequency of interviews conducted before the selection;
optimum balance in the # Recruiter to open requisitions `` The added value recruitment drives in the
ratio prevents companies from being exposed to poor organization’s performance ;
quality recruitment. Essentially, an unbalanced # Recruiter `` The added value recruitment drives in customer satisfaction;
to open requisitions ratio, negatively impacts: `` Workforce planning strategies.

KPI 15 % New hire failure
KPI Record sK52 Tags turnover, retention, new hire
Definition Measures the rate at which new employees Subordinate metrics A = # Newly hired employees
left the organization (voluntary or by being that left the organization
terminated) in a short time period after being (voluntary or terminated) after a
hired (e.g. under 30, 90 or 180 days). short tenure (i.e. less than 1, 3 or
6 months)
Variations % Turnover of the new hire within the first year B = # New hires
% New hire turnover by department
% New employees failure factor Calculation formula (A/B)*100
Related KPIs # New hire satisfaction with recruiting index Trend is good when Decreasing
% New hire turnover
Focus Data Profile
Purpose To assess the effectiveness level of Data capture period Rolling average
the recruiting process. It reflects
the new hire quality and fit with
frequency
the role and the organization.
Data collection HR Data records
method
Objective measured Improve recruitment Limitations Difficult to obtain accurate
figures if the HR systems are not
accurately synchronized to capture
the data for this KPI.
Targets
   A target level as low as possible is desirable for this

indicator, as failed recruitment exercises have multiple
Red: >12% Yellow: 10-12% Green: <10% effects for the HR department, the internal client and the
employment brand name.

New hire failure has negative effects due to the loss 1. Insala (2010), Mentoring for onboarding: Increase new
of know-how, the cost of replacing employees and the hire retention and maximize hiring investment, available at:
duration of the replacement process. A high failure http://www.insala.com/Articles/Mentoring/mentoring-for-
rate for new employees requires root-cause analysis to onboarding-increase-new-hire-retentionand-ma...
determine and address its causes. 2. APQC (2013), The best compared to the rest: Top
Additional resources performers in recruiting, sourcing, and selecting employees
ÎÎ http://www.aberdeen.com/Aberdeen-Library/4574/
(collection), available at:
RA-effective-onboarding-strategies.aspx
http://www.apqc.org/knowledge-base/documents/best-compared-rest-top-performersrecruiting-sourcing-a...
3. Talent Plus (2007), New-hire retention and turnover, available at:
http://www.talentplus.com/userfiles/file/13_New_Hire_Retention_and_Turnover_-_Financial_1674.pdf
Scorecard Outlook


Current
results
% New hire failure sK52 Q 15% 19%  5% 
Dashboard Outlook
KPI Results
% New hire failure
W1 16% 19%
16%
15%
13%
W2 13%
W3 15%
W4 19%
W1 W2 W3 W4
According to the Society for Human Resources `` Abiding by a formal induction process that explicitly
Management*, 50% of all hourly workers leave their new communicates the core policies and procedures of
positions within 4 months of hire. New hire failures are the organization;
commonly consequences of employee attitude rather `` Providing new hires with all the necessary
than employee skill. Technical skills, as well as, soft skills information that concerns the role and their
are, generally, easy to assess and invariably tested before responsibilities within the organization;
a new hire. Therefore, it is behavior that either reinforces `` Granting new employees, the human resources
or undermines skill. Programs designed to improve skills education that they need to fully understand vacation
have proven to be successful, but they have seldom and leave policies, employee benefits, the company’s
been responsible for changes in employee behavior. code of conduct, bonus and reward systems;
A successful onboarding process ensures that all new `` Training new hires into the functional area of their job;
employees acquire the behaviors that best reflect on `` Giving new hires the opportunity of freely
the values of the organization. Recommended practices communicating anything to their internal peers.
on mastering the onboarding process of new employees
include:
*The Society for Human Resources Management (2015)

KPI 16 # Rookie ratio
KPI Record sK2032 Tags workforce profile
Definition Measures the ratio between the employees Subordinate metrics A = # Employees with less than
with less than two years of experience and the two years of experience
total number of employees. B = # Headcount
Variations # Employees with less than two years of Calculation formula A/B
experience
# Recent employees to headcount Trend is good when Within range
Related KPIs % Staffing rate less than 1 year tenure
Focus Data Profile
Purpose To indicate the level of experience Data capture period Spot

of the personnel, as this is an
important driver of organizational
frequency
performance and success.
Data collection HR Data records, Internal
method Employee Databases,
Objective measured Optimize workforce Headcounts.
Limitations Accurate reporting for this KPI is
dependent on a well maintained
and real time adjusted HR internal
system for monitoring employee
profile data.
Targets
   Targets depend on the organization’s stage of development

and its HR strategy in terms of attracting fresh workforce
Red: <0.2;>0.5 Yellow: 0.2-0.3; Green: 0.3-0.4 and model them or attracting highly experienced talent.
0.4-0.5

ÎÎ http://www.sveiby.com/articles/
This KPI is limited by not reflecting the average experience
level of employee experience. Another context for MeasureInternalStructure.html
monitoring it is to measure the rookie ratio on a per References
project / team / department level. A balanced rookie ratio 1. Vance, C. M. and Paik, Y. (2011), Managing a global
is ideal, as it provides both the benefits of a new wave of workforce: Challenges and opportunities in international
ideas from new employees and an experienced workforce human resource management, Second Edition. United States
to maintain know-how and train new staff. of America: M.E. Sharpe, available at:
http://www.amazon.com/Managing-Global-Workforce-Opportunities-International/dp/0765623498/?
2. Rodwell, J. J. and Teo, S. T. T. (2002), Strategic HRM, knowledge retention and human capital in Australian exporting firms,
International Employment Relations Review, Volume 8, Number 1, available at:
https://opus.lib.uts.edu.au/handle/10453/6474??
3. Lengnick-Hall, M. L. and Legnick-Hall, C. A. (n.d.), Human resource management in the knowledge economy, Berrett-Koehler
Publishers, available at:
http://www.bkconnection.com/static/Human_Resource_Management_In_The_Knowledge_Economy_EXCERPT.pdf
Scorecard Outlook


Current
results
# Rookie ratio sK2032 Q 0.6 0.7  0.35 
Dashboard Outlook
KPI Results
# Rookie ratio 0.8 0.8
0.7
Q1 0.8 0.6
Q2 0.8
Q3 0.6
Q4 0.7
Q1 Q2 Q3 Q4
The # Rookie ratio provides insight into the distribution too low values of this indicators can yield drawbacks.
of workforce within an organization. More precisely, it Although new employees can be less efficient and more
measures the percentage of employees who have been demanding on the short run, they are invaluable for
with the organization for less than two years, versus the refreshing the company’s spirit and working environment.
percentage of employees who have been employed with However necessary a breath of fresh talent may be for
the company for longer than that. An organization has the organization, it is just as important that the same
to strike a balance in the # Rookie ratio, as too high and organization values and retains its existing employees.

KPI 17 % Job offer acceptance rate
KPI Record sK53 Tags job offer
Definition Measures the percentage of job offers Subordinate metrics A = # Job offers accepted
accepted by the applicants out of the total B = # Job offers made
number of employment offers made.
Variations % Acceptance rate
% Offer acceptance rate Trend is good when Increasing
Related KPIs % Interview employment offer rate

# Long term vacancies per total number
of jobs
% Job descriptions reviewed`
Focus Data Profile
Purpose To assess the attractiveness of Data capture period Year to date

job offers among candidates
and their perception regarding
frequency
the organization’s reputation, as
attractive job offers from ‘desired’ Data collection HR data records
organizations are more likely to method
be accepted. Also, it reflects the
Limitations Difficult to obtain accurate
quality of the recruitment process,
figures if the HR systems are not
as good candidate screening should
accurately synchronized to capture
ensure high job acceptance rates.
the data for this KPI across the
BSC perspective Learning & Growth organization. It requires a certain
level of centralization of job offers
Objective measured Improve recruitment processing.
Targets
   The target should be set close to 100% as lower rates

result in loss of productivity and high recruitment costs.
Red: <80% Yellow: 80-90% Green: >90% Due to the generic measurement approach for this KPI,
benchmarking is suitable.

Overall notes well evaluated by the interviewer, or that the offer /
A high level of the KPI partially reflects the quality of company is not competitive enough on the job market in
candidate screening and interviewing and good job market terms of salaries and working environment.
competitiveness, as offers were made to candidates that Additional resources
accepted them. A low level of job offer acceptance rate ÎÎ http://www.apqc.org/knowledgebase/
indicates that the motivation of the candidates was not download/32274/a%3A1%3A%7Bi%3A1%3Bs%3A1
%3A%222%22%3B%7D/inline.pd...
References
1. Harvard Office of Career Services (2010), Evaluating and negotiating job offers, available at:
http://ocs.fas.harvard.edu/files/ocs/files/gsas-decision-making-publication.pdf?m=1438097712?
2. Breaugh, J. A. (2009), Recruiting and attracting talent: A guide to understanding and managing the recruitment process, SHRM
Foundation, available at: http://www.shrm.org/about/foundation/products/Documents/1109%20Recruiting%20EPG-%20Final.pdf
3. JWT Inside (n.d.), How to measure the impact of employer branding, available at:
http://www.jwtinside.com/docs/measure_impact_of_employer_branding.pdf
Scorecard Outlook


Current
results
% Job offer
sK53 Q 98% 98%  95% 
acceptance rate
Dashboard Outlook
KPI Results
% Job offer acceptance rate
98% 98% 98%
96%
Q1 98%
Q2 96%
Q3 98%
Q4 98% Q1 Q2 Q3 Q4
Elevated % Job offer acceptance rates are the result of a `` Harvest the candidate: collect the requisite data for
consistent recruitment process that begins with making a introducing the candidate to the job offer;
job offer, and concludes with the candidate showing up `` Interview the candidate: compare the candidate’s criteria
for the first day of work. However, if not properly engaged against the selection criteria;
into the recruitment process, potential candidates can `` Market the job offers: sell the job offers selected
quickly lose their interest and turn down the offer. candidates for a smart close;
Company-wise this causes loss of time and turn down `` Finish the deal: after the candidate’s verbal acceptance,
costs. One way to improve % Job offer acceptance rates tend to the paperwork and head on to a quick finish;
is to clearly map out the main steps in the recruitment `` Follow up on decision: make sure that you have all the
process: necessary tools to prevent the candidate falling out on
his/her decision before his/her first day of work.

KPI 18 # Employee tenure
KPI Record sK8 Tags human resources, employee, tenure
Definition Measures the number of years that the Subordinate metrics A = # Time spent with the
employees have been with their current company by employee ‘i’ (in
employer, calculated at organizational level. months or years), where i=1 to n
n = # Headcount
Variations # Median time of tenure with current employer Note: can be calculated as an
# Average employee (workforce) tenure average or as a mean
# Length time service of staff who have left
# Average employee years of service with company Calculation formula (A1+A2...+An)/n
Related KPIs % Employees in self-managing teams Trend is good when Increasing
$ Job abandonment cost
Focus Data Profile
Purpose To monitor the length of service Data capture period Spot

of employees, as an indicator of
Standard reporting Biannually
workforce profile.
frequency
BSC perspective Learning & Growth Data collection HR Data Records, Employee
Objective measured Increase employee retention method Databases
Limitations Data reporting and accuracy is

Targets dependent on well maintained
electronic employee records.
Threshold examples
   Analysis and Resources

Red: <2; Yellow: 2-4; Green: >4 Overall notes
It is possible to report individual employee tenure not
only as a total number of months or years spent with the
According to the Bureau of Labor statistics Washington, the company, but also broken out in the time duration spent
median number of years that wage and salary workers had per job position. This granularity helps managers to assess
been with their current employer was 4.4 years in January employee eligibility for promotions, position rotation
2010, 4.1 years in January 2008, and 4.0 years in January as well as other tenure-related benefits, such as plan
2006. Information on employee tenure has been obtained achievement, leaves of absence etc. Monitoring average
from supplemental questions to the Current Population employee tenure by job may be useful in indicating
Survey (CPS) every 2 years since 1996. The CPS is a unexpectedly low tenure in a particular department. If it
monthly survey of about 60,000 households that provides is not managed, high turnover can lead to poor employee
information on the labor force status, demographics, morale and poor employee performance. It does not
and other characteristics of the civilian non-institutional always reflect employee satisfaction with the working
population age 16 and over. The questions about environment, as some employees could stay with the
employee tenure measure how long workers had been company for other reasons, such as not being able too find
with their current employer at the time of the survey. A a better job or just wanting to add the current position to
number of factors can affect the median tenure of workers, their CV. While high employee tenure indicates retained
including changes in the age profile among workers as well knowledge, it may also impact the level of new ideas and
as changes in the number of hires and separations. energy associated with new employees. Employee tenure
varies across industries, is affected by labour market
conditions and by organizational maturity. Benchmarking is not recommended for this reason.
ÎÎ http://www.jstor.org/pss/258331
ÎÎ http://www.abs.gov.au/ausstats/abs@.nsf/productsbytitle/261D5A655541A61ECA2568A900139361?OpenDocumen...
References
1. Employee Benefit Research Institute (2005), Employee Tenure: Stable Overall, but Male and Female Trends Differ, EBRI Notes, Vol. 26, No. 3, pp. 2-10
2. Indiana Business Research Center (2010), Indiana Employee Tenure by Industry and Manufacturing Sub-Sector, available at:
http://www.incontext.indiana.edu/2010/july-aug/July-Aug_10.pdf
3. United States Department of Labor (2010), Employee tenure summary. press release, available at: http://www.bls.gov/news.release/tenure.nr0.htm
Scorecard Outlook


Current
results
# Employee tenure sK8 B 3 4  5 
Dashboard Outlook
KPI Results
# Employee tenure 4
3 3
S1 2
2
S2 3
S3 3
S4 4 S1 S2 S3 S4
Employee retention rates can also be reflected in `` Resistance to changes in the organizational culture;
the # Employee tenure, that is, the number of years `` Little enthusiasm for further innovation;
that the employees have been with their current `` Reduced versatility in a fast-changing environment;
employer, calculated at organizational level. However `` Little tolerance to new, fast-paced generations.
important long tenure may be to the retention strategy
of the organization, it is not advisable to disregard the
implications of a too long tenure:

KPI 19 # Fringe benefits to basic salary ratio
Functional Areas Human Resources, Compensation and Benefits Industries Any
Sub-categories Compensation and Benefits Sub-categories Any
KPI Record sK1885 Tags benefits
Definition Measures the total fringe benefits Subordinate metrics A = $ Fringe benefits
expense relative to the basic salary B = $ Basic salary
expense during the measurement period
of time. Calculation formula A/B
Variations $ Fringe benefits to salary ratio Trend is good when Within range
Related KPIs % Benefits operating expense rate
Focus Data Profile
Purpose To provide an indication of the Data capture period Year

earning structure and the impact
Standard reporting Biannually
of salaries and fringe benefits on
frequency
total earnings.
Data collection Cost Analysis Reports, Financial
BSC perspective Financial method statements, Employee Benefits
Objective measured Optimize costs Lists
Limitations The calculation of this indicator
requires access to data regarding
the value of fringe benefits and
salaries.
Targets
   Threshold examples vary widely according to the amount

of basic salary, the legislation and the HR reward based
Red: <0.2; >0.35 Yellow: 0.2-0.25; Green: 0.25 - 0.3 strategy. Benchmarking is suitable for this indicator if
0.3-0.35 based on industry and geographical factors.

Fringe benefits are a form of payment for performance 1. Grier, W. (2007), Credit Analysis of Financial Institutions
in work accomplished, such as accident and health plans, Second Edition, London: Euromoney Institutional Investor
life insurances, etc. Based on the country’s legislation with 2. Internal Revenue Service USA (2014) ?, Fringe benefit
regards to the taxes paid for fringe benefits and basic salaries, guide, ?available at: ?https://www.irs.gov/pub/irspdf/
HR practices might be influenced due to cost savings.
p5137.pdf?
3. Michael, H. and Francis, K. (1994), Replacement
Additional resources Ratio Projections in Defined Contribution Retirement
ÎÎ http://www.controller.msstate.edu/
Plans: Time, Salary Growth, Investment Return, and Real
sponsoredprograms/fringe_benefits.pdf? Income, available at:
http://www.eric.ed.gov/ERICWebPortal/custom/portlets/recordDetails/detailmini.jsp?_nfpb=true&_&a...
Scorecard Outlook
Strategic Objective Optimize costs

Current
results
# Fringe benefits to basic
sK1885 B 0.25 0.28  0.28 
salary ratio
Dashboard Outlook
KPI Results
# Fringe benefits to basic salary ratio 0.25
0.28
0.23
S1 0.21 0.21
S2 0.23
S3 0.25
S4 0.28 S1 S2 S3 S4
Companies monitor their # Fringe benefits to basic salary benefits to basic salary ratio is particularly viable in the
ratio in order to keep their labor cost under control. The KPI case of two companies merging. In this case, evaluations
also provides reason for benchmarking against industry of the merging companies can result in # Fringe benefits
peers. It enables organizations to assess their spend on to basic salary ratio adjustments, and employees can be
employee benefits while also providing an opportunity easily engaged into understanding the necessity of such
for employers to save on this expense. Saving on # Fringe reconciliations.

KPI 20 $ Training investment per full time equivalent (FTE)
KPI Record sK6 Tags training, cost
Definition Measures the average amount spent on Subordinate metrics A = $ Training investment in staff
training for each Full Time Equivalent learning and education
(FTE). An FTE of 1.0 is equivalent to a B = # FTEs
full-time worker.
Calculation formula A/B
Variations $ Training cost per employee
$ Average training investment per full time Trend is good when Within range
equivalent (FTE)
$ Average training cost per full time equivalent Data Profile
(FTE)
Related KPIs # Daily training session duration Data capture period Rolling average
# Professional events attended by employees Standard reporting Quarterly
% Employees reaching competence after training frequency
% Core areas of expertise covered at
desired level Data collection Data is reflected in the training
method budgets allocated versus
headcount. Budget spreadsheets
Focus can be used to keep a track of
training expenses.
Purpose To assess and monitor the level of
organizational investment in staff Limitations It is difficult for large organizations
training. to coordinate the tracking of staff
training. Accuracy in monitoring
BSC perspective Learning & Growth the cost of training and number
Objective measured Ensure continuous learning and of participants is a prerequisite of
development using this KPI.
Targets
   An American Society for Training and Development (ASTD)

study found that the average number of hours of formal
Red: <700; >1,500 Yellow: 700- Green: 1,000- learning per employee in BMF organizations increased from
1,000; 1,200- 1,200 35 hours per employee in 2004 to 41 hours per employee in
1,500 2005. In BEST organizations, the average number of learning
hours per employee rose from 36 in 2004 to 43 in 2005.

Overall notes costs, facilities, travel, equipment, instructor’s salary
Training costs usually refer to: - Development costs (e.g. and benefits); - Indirect implementation costs (e.g.
salaries and benefits of personnel, equipment); - Direct overhead, general and administrative); - Compensation
implementation costs (e.g., training materials, technology for participants.
ÎÎ http://www.pinnaclepeo.com/blog-sources/HR-Metrics-Kit.pdf
References
1. Feddesk (2006), Achieving competencies in public service: the professional edge, available at: http://www.amazon.com/
Achieving-Competencies-Public-Service-Professional/dp/076562348X/
2. Society for Human Resource Management (2006), Training Cost per Employee, SHRM Metric of the Month, available at:
http://www.shrm.org/Research/Articles/Articles/Pages/MetricoftheMonthTrainingCostPerEmployee.aspx
3. Sugrue, B. and Rivera, R. J. (2005), State of the industry: ASTD’s annual review of trends in workplace learning and performance.
VA: Alexandria
Scorecard Outlook


Current
results
$ Training investment per
sK6 Q 1300 1100  1000 
full time equivalent (FTE)
Dashboard Outlook
KPI Results
1500
$ Training investment per full time equivalent (FTE) 1400
1300
1400 1100
Q1
Q2 1500
Q3 1300
Q4 1100
Q1 Q2 Q3 Q4
People, learning and growth all intertwine when an organization’s training investment can be measured
companies sprint forward to achieve high performance. through its returns:
In order for the company to grow, it needs to provide `` Increased employee loyalty and engagement;
its employees with the opportunity for learning and `` Better company-employee relationships;
self-development. Trainings constitute one of the most `` High retention rates;
effective means by which employees can grow within `` Increased productivity.
the organization, as well as, outside it. The success of

KPI 21 % Paid-time-off (PTO) hours utilization rate
Functional Areas Human Resources, Working Environment Industries Any
Sub-categories Working Environment Sub-categories Any
KPI Record sK1951 Tags work & life balance
Definition Measures the paid-time-off hours taken Subordinate metrics A = # Paid time off hours used
by employees, as a percentage of the B = # Paid time off hours
total number of paid-time-off hours accumulated / available
available and paid for.
Variations % PTO utilization rate
Trend is good when Within range
Related KPIs
Focus Data Profile
Purpose To indicate the extent to which Data capture period Year to date
employees use their allocated
paid-time-off hours (PTO).
frequency
BSC perspective Learning & Growth Data collection
Objective measured Ensure effective human resource method
management Limitations Accurate data reporting requires a
monitoring system regarding the
PTO status of each employee.
Targets
   Threshold has just an exemplification purpose. An optimal

level of this KPI is desired, so as to not affect the well
Red: <50%; >90% Yellow: 50-60%; Green: 60-80% functioning of the activities. Employees will receive payment
80-90% for approved PTO days, as long as they have accrued PTO
hours in their ‘individual bank’.

ÎÎ http://www.artlogic.com/resources/employee-cost-
A PTO plan combines the employee’s time-off benefits
into one ‘bank’ of days off with pay. For instance, instead calculator/index.php
ÎÎ http://www.peplans.com/paid-time-off.htm
of having 10 vacation days, 5 sick days and 5 personal
ÎÎ https://www.shrm.org/Research/SurveyFindings/
days, employees will benefit from 20 paid days off to take
for any reason. PTO plans have the advantage of flexibility, Articles/Documents/09-0228_Paid_Leave_SR_FNL.pdf
thus attracting and retaining talented employees. Also, References
it is easier for employers to ‘charge’ a PTO account for 1. The Council of Economic Advisors (2014), The economics
hours off, if the employee has a personal appointment of paid and unpaid leave, available at:
(doctor, dentist). Unfortunately, PTO causes employees
https://www.whitehouse.gov/sites/default/files/docs/leave_
to take more time off.
report_final.pdf?
2. WorldatWork (2010), Paid time off programs and practices: A survey of WorldatWork members, available at:
http://www.worldatwork.org/waw/adimLink?id=38913
3. UC Davis Health System (n.d.), Paid time off (PTO) benefit program, available at:
http://www.ucdmc.ucdavis.edu/hr/hrdepts/compensation/pto.html
Scorecard Outlook

Strategic Objective Ensure effective human resource management

Current
results
% Paid-time-off (PTO)
sK1951 Y 65% 66%  75% 
hours utilization rate
Dashboard Outlook
KPI Results
% Paid-time-off (PTO) hours utilization rate 68%
63% 65% 66%
Y1 68%
Y2 63%
Y3 65%
Y4 66% Y1 Y2 Y3 Y4
Paid time off provides employees with the opportunity times in its operational cycle. The % Paid-time-off (PTO)
to step out of the soliciting working environment and utilization rate is particularly important with cases of
attend to personal affairs. Keeping track of the extent to voluntary or involuntary termination of employment,
which employees make use of their paid time off, aids the times at which the employer must grant the employees
organization in its human resources planning process, as in question their rightful benefits as per the contractual
reflected by the workforce capacity available at particular agreement signed.

KPI 22 # Employee commitment index
KPI Record sK1835 Tags engagement
Definition Measures the employee’s commitment Subordinate metrics A = # Employee commitment

and attachment to their work and to the Surveys assessing employee
organization overall. commitment are usually tailored
to each organization. They use
Variations # Employee commitment structured questioning to assess
Related KPIs employee discretionary effort
and whether they find their work
stimulating.
Calculation formula A, based on survey
Focus Data Profile
Purpose To evaluate the level of employees’ Data capture period Spot

commitment to the organization,
as an indicator of employee
frequency
satisfaction with their job,
company and their proud to work Data collection Employee engagement surveys,
for their company. method Employee satisfaction surveys,
Employee appraisals, Internal
BSC perspective Learning & Growth assessments
Objective measured Increase employee retention Limitations The accuracy of data can be limited
calculation of this indicator is based
on survey results.
Targets
   The threshold example is expressed in points (100 maximum)

and has just an exemplification purpose. Organizations
Red: <60 Yellow: 60-75 Green: >75 construct various scales to measure employee engagement
and targets can vary from one industry to another depending
on the employees’ profile. Younger employees are usually
more susceptible to enthusiasm and commitment problems.

Overall notes
According to WorkUSA 2000, employee commitment is such as employees’ trust in senior leadership and the
closely related to shareholder value. The level of employee chance to use their skills.
commitment to the organization is driven several factors
ÎÎ http://oshr.nc.gov/state-employee-resources/benefits/employee-recognition
References
1. Saridakis, G., Torres, M. and Tracey, P. (2009), The endogeneity bias in the relationship between employee commitment and job
satisfaction, available at: http://www.aiel.it/page/old_paper/saridakis_et_al.pdf
2. Scottish Executive Office fo Chief Researcher (2007) , Employee engagement in the Public Sector, available at:
http://www.gov.scot/resource/doc/176883/0049990.pdf
3. MacLeod, D. and Clarke, N. (n.d), Engaging for success: E nhancing performance through employee engagement, available at:
http://dera.ioe.ac.uk/1810/1/file52215.pdf
Scorecard Outlook
Perspective Learning&Growth

Current
results
# Employee commitment
sK1835 Y 34 35  80 
index
Dashboard Outlook
KPI Results
# Employee commitment index
43
Y1 43 35 34 35
Y2 35
Y3 34
Y4 35 Y1 Y2 Y3 Y4
Employee commitment is a reflection of the perception organization for a better job opportunity, as well as, any
employees have regarding the organization they work for. favorable market opportunity. Several recommendations
It is different from employee engagement in the sense of raising employee commitment include:
that it exhibits the desire of existing employees within the `` Creating a strong reputation and employment brand;
organization to spend their career with the organization `` Perceived leadership/management quality;
they work for. The # Employee commitment index is a `` Clearly mapped processes and well defined
leading indicator for turnover within the organization. It procedures.
directly impacts the likelihood of employees leaving the

KPI 23 % Employee cost over sales revenue
KPI Record sK2016 Tags efficiency ratios
Definition Measures the amount of money spent Subordinate metrics A = $ Employee expense
by the organization with the workforce B = $ Sales revenue generated
employed relative to the total sales
revenue generated from the workforce Calculation formula (A/B)*100
employed activities during the Trend is good when Decreasing
measurement period of time.
Variations % Employee expense over the sales revenue
Related KPIs $ Office space cost per staff Data Profile
% Employee cost over net income
Data capture period Year to date
Focus
frequency
Purpose To monitor the efficiency in Data collection Sales reports, Financial
the utilization of employees to method statements, HR Data records
generate revenue.
Limitations Accurate reporting on this KPI
BSC perspective Financial relies on payroll records from
a sound financial management
Objective measured Optimize costs system.
Targets
   The lower the figure, the better for the company. If less of
each unit of revenue is devoted to employee remuneration,
Red: >50% Yellow: 20-50% Green: <20% there will be more money available for other purposes.

This indicator is useful to compare companies operating 1. Lockwood, N. (2006), Maximizing human capital:
in the same business. If the ratio is used for international Demonstrating HR value with key performance indicators,
comparison, major variations can be expected, because available at: http://marino72.files.wordpress.com/2009/06/
wage levels, social security and other benefit charges differ. maximazing-hc.pdf
Additional resources 2. Bragg, S. (2011), The new CFO financial leadership manual,
ÎÎ http://www.angusrobertson.com.au/books/guide-to- Second Edition. Hoboken: Wiley John & Sons, available at:
analysing-companies-bob-vause/p/9781576603413? http://www.barnesandnoble.com/w/the-new-cfo-financial-
leadership-manual-steven-mbragg/1118199004?ea...?
3. Locwood, N. R. (2006), Maximizing human capital: Demonstrating HR value with key performance indicators, 51(9): 1-11,
available at: https://www.shrm.org/Research/Articles/Documents/0906RQuartpdf.pdf
Scorecard Outlook
Strategic Objective Optimize costs

Current
results
% Employee cost over
sK2016 Y 20% 31%  15% 
sales revenue
Dashboard Outlook
KPI Results
% Employee cost over sales revenue 31%
Y1 18% 23%
18% 20%
Y2 23%
Y3 20%
Y4 31%
Y1 Y2 Y3 Y4
Business wise, the indicator reflects on the amount of `` Clearly defining hiring policies to best suit the
gross revenue that goes to payroll. Having that payroll is organization;
an important cost to any organization, it is essential that `` Establishing an optimal value for the labor costs one
a balance is achieved between having enough people organization can handle;
to keep revenue going and not hiring employees the `` Deciding on a labor margin that is ideal for effectively
organization doesn’t really need. Achieving the desired running the business.
value in labor costs over revenue, highly depends on
human resources management strategies such as:

KPI 24 $ Human capital value added
KPI Record sK89 Tags human capital
Definition Measures the value added through Subordinate metrics A = $ Revenue

productive activities by the B = $ Operating expense
organization’s human capital. Reflects C = $ Compensation & Benefit
the adjusted operating profitability cost (Labor cost)
figure calculated by subtracting all D = # FTEs (or headcount)
expenses except for labor expenses
from revenue and dividing the adjusted Calculation formula [A-(B-C)]/D
profit figure by the total headcount. Trend is good when Increasing
Variations $ Financial human capital value added
$ HCVA
Related KPIs % Human Capital Return on Investment (ROI)
Focus Data Profile
Purpose To assess the effectiveness of Data capture period Year to date

human capital. It parses out the
effects of non human issues and
frequency
looks at the human impact on
revenue. Data collection Enterprise Resource Planning
method (ERP) System
BSC perspective Financial
Limitations It requires integration of both
Objective measured Maximize human capital financial and HR metrics. Can be
automated by extracting these
figures from Enterprise Resource
Planning systems.
Targets
   Targets should be set according to business characteristics,

internal HR capabilities and policies in involving HR in
Red: <1,000 Yellow: Green: >1,500 measuring business performance, the size of the organization,
1,000-1,500 the industry and business type.

Overall notes addition, many organizations measuring human capital
A study conducted by ISR, which is an international are still not using their metrics to assist in senior
employee research and consulting firm revealed that management performance assessments or to improve
many companies collect metrics related to their human business performance. According to a passage from the
capital, but less than half actively evaluate the impact Human Capital Effectiveness 2007/2008 Report of the
of their human capital on business performance. In Saratoga Institute stating the importance of HR and the
optimization of Human Capital: “As the global economy continues to flatten, organizations will need to have an increased
focus on talent management, succession planning, retention, and finding new ways to increase productivity in order to
outperform their competition. HR departments that align themselves with corporate strategy and goals, and ensure they
have access to the necessary expertise, information, and systems to optimize workforce investments will be at a distinct
advantage in helping their organizations maximize corporate value”.
ÎÎ http://instructor.mstc.edu/instructor/khansen/Human%20Resources/SB14eChap02.ppt
References
1. North Carolina Healthcare Human Resource Association (2001), Building a leadership legacy, available at:
http://www.nchhra.org/files/ROI_NC_HRHA4262001.ppt
2. Ngin, P. C. (2005), Applying human capital management to model manpower readiness: A conceptual framework, available at:
http://www.nps.edu/research/HCS/Docs/05Dec_Ngin.pdf
3. Weatherly, L. (2006), The value of people: The challenges and ppportunities of human capital measurement and reporting,
SHRM Research Quarterly, available at: https://www.shrm.org/Research/Articles/Articles/Documents/0303measurement.pdf
Scorecard Outlook
Strategic Objective Maximize human capital

Current
results
$ Human capital
sK89 M 1740 1710  1800 
value added
Dashboard Outlook
KPI Results
$ Human capital value added
1700 1680 1705 1740 1710

M1 1700 1650
M2 1650
M3 1680
M4 1705
M5 1740
M1 M2 M3 M4 M5 M6
M6 1710
In accounting, the human component of an organization does creates for its shareholders. Some of the criteria that positively
not exist, except, maybe, as an expense. However, it is the impact the value human capital adds to the organization include:
human capital that ultimately adds, or, otherwise, dismantles the `` A stimulating working environment;
economic value of a business. The $ Human capital value added `` Provision of the right tools and techniques;
measures the actual contribution of employees to the profit of the `` Access to knowledge and intellectual capital;
organization. The indicator reveals a direct correlation between `` Continuous investment in training and development.
human resource management and the value the organization

KPI 25 % Human Capital Return on Investment (ROI)
KPI Record sK90 Tags cost, employees
Definition Measures the return on investing in the Subordinate metrics A = $ Revenues

human capital of the organization, after B = $ Operating Expenses
adjusting the cost of financial capital. C = $ Compensation & Benefits
Costs
Variations % Human Capital ROI
Calculation formula [A-(B-C)]*100/C
Related KPIs $ Human capital value added
Focus Data Profile
Purpose To assess the effectiveness of Data capture period Year to date

the investment in human capital
in terms of financial returns
frequency
generated by employees.
Data collection Financial statements, HR data
BSC perspective Financial method records
Objective measured Maximize human capital
Limitations This KPI reflects only financial
returns and it does not capture
intangible assets and other
unmeasurable results.
Targets
   There are a number of surveys that provide benchmarking in

Human Capital ROI, which are very useful in setting targets and
Red: <80% Yellow: 80-100% Green: >100% comparing the values with those in the industry, (i.e. Report
Sample Ratio - Human Capital ROI, from the Organizational
Performance & Effectiveness Section, Canada, 2004).

Overall notes
approach is known in the world of finance as a valuebased
The Human Capital ROI reflects all the elements which
formula.
impact employee productivity, expense and profitability.
Essentially, it puts all the employees’ impact on company
in one place, integrating revenue, expense, income, Additional resources
compensation costs and benefits into the formula. This ÎÎ http://www.gao.gov/assets/80/76803.pdf
References
1. Sarvision (2012), Fire risk, active fire detection and fire damage assessment, available at:
http://www.sarvision.nl/index.php?page=fire-risk-damage-assessment
2. United States Environmental Protection Agency (2012), Natural resource damage assessment, available at:
http://www.epa.gov/superfund/programs/nrd/nrda2.htm
3. Government of Canada (2011), ?Guide to corporate risk profiles, available at: http://www.tbs-sct.gc.ca/hgwcgf/pol/rm-gr/
gcrp-gepro/gcrp-gepro03-eng.asp
Scorecard Outlook
Strategic Objective Maximize human capital

Current
results
% Human Capital Return
sK90 M 94% 92%  110% 
on Investment (ROI)
Dashboard Outlook
KPI Results
% Human Capital Return on Investment (ROI)
93% 96% 94% 92%
M1 82% 82%
84%
M2 84%
M3 93%
M4 96%
M5 94%
M1 M2 M3 M4 M5 M6
M6 92%
Timely response to customer inquiries will make `` Base response time on the customer base as a whole;
customers feel valued and appreciated. Failure to do so, `` Inform the customer when a response is to be offered;
will determine customers to take their business elsewhere. `` Asses the company’s operational capabilities and
Even if inquiries cannot be fully responded to immediately, decide on an attainable response time;
a notification stating the time a valid reply should be `` Select the response time that will let the company
expected, needs to be sent. Several recommendations on achieve the desired level of service.
optimizing inquiry response processes include:

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`` The Health, Safety, Security and Environment KPI `` The Education and Training KPI Dictionary
Dictionary `` The Financial Institutions KPI Dictionary
`` The Human Resources KPI Dictionary `` The Healthcare KPI Dictionary
`` The Information Technology KPI Dictionary `` The Hospitality and Tourism KPI Dictionary
`` The Knowledge and Innovation KPI Dictionary `` The Infrastructure Operations KPI Dictionary
`` The Marketing and Communications KPI Dictionary `` The Local Government KPI Dictionary
`` The Online Presence KPI Dictionary `` The Media KPI Dictionary
`` The Production and Quality Management KPI `` The Professional Services KPI Dictionary
Dictionary
`` The Real Estate / Property KPI Dictionary
`` The Project and Portfolio Management KPI
`` The Resources KPI Dictionary
Dictionary
`` The Sports KPI Dictionary
`` The Sales and Customer Service KPI Dictionary
`` The State / Federal Government KPI Dictionary
`` The Supply Chain KPI Dictionary
`` The Telecommunications KPI Dictionary
`` The Transportation KPI Dictionary
`` The Utilities KPI Dictionary
You are now one step away from

mastering business excellence
8000 KPIs structured in 2 volumes
THE KPI DICTIONARY VOLUME I:

FUNCTIONAL AREAS
Find out insights about KPIs from 16
Functional areas and 65 subcategories
THE KPI DICTIONARY VOLUME II:

INDUSTRIES
Access KPIs from a variety of 25 Industries
and 94 industry specific subcategories
Performance resources are now at your fingertips. Find out more by

ORDER YOUR DICTIONARY
accessing store.kpiinstitute.org/publications.html

APPENDIX C: PERFORMANCE MANAGEMENT TOOLKITS
Get your pre-populated comprehensive selection of tools that enable both planning
and monitoring performance!
KEY BENEFITS
`` Integration: a complete set of tools for implementing a Performance Management System
`` Hands-on approach: a ready-to-use toolkit, containing pre-populated templates
`` Advice and learning: all templates are filled in with relevant data, requiring limited effort for customization
`` Complete documentation: all KPIs are fully documented
Toolkits by Industry
Managing and measuring performance is now easier with prepopulated templates
Call Center Performance Medical Practice Performance Real Estate Agency Performance Recruitment Agency
Management System Toolkit Management System Toolkit System Toolkit Performance Management
System Toolkit
DISCOVER ALL
TOOLKITS
IN OUR RESEARCH
LIBRARY!
Get your pre-populated comprehensive selection of tools! Visit store.

GET STARTED TODAY
kpiinstitute.org/publications.html
APPENDIX D: PERFORMANCE MAGAZINES
Keeping professionals updated with the latest performance management trends and
developments
DISCOVER THE PERFORMANCE MANAGEMENT SERIES

`` Perspectives: interviews with specialists from various countries
`` Around the World: countries analyzed for legislation in the field. Special country insights
`` Education: reputable universities, university degrees and subjects related to the field
`` Trends: the Google search popularity and media exposure of performance related keywords
`` Resources: best-selling and latest published books. performance-related academic articles
`` Career: Most sought-after careers and salary levels in the field in the specific member states
Special Editions
The Performance Management in 2014 Special Editions are The KPI Institute’s exclusive publications that provide
in-depth analysis on Performance Management within the Gulf Cooperation Council and the Member States of the
Association of Southeast Asian Nations.
GET ACCESS TO
`` Portraits of renown performance experts across the globe
`` Interviews with prominent professionals in the field
`` Articles offering valuable insights on numerous performance related topics
`` Reviews of software and hardware solutions
`` Resources and other recommendations
THE KPI INSTITUTE’S

MAGAZINE DEDICATED
TO PERFORMANCE,
NOW IN PRINT!
Browse and download magazines from

READ THIS MONTH’S ISSUE
store.kpiinstitute.org/publications.html

APPENDIX E: MEMBERSHIP OPTIONS
MEMBERSHIP OPTIONS
BECOME A MEMBER OF THE KPI INSTITUTE
AND GAIN FIRST-HAND ACCESS TO OUR KNOWLEDGE AND EXPERTISE!
 EDUCATION AND EVENTS  RESEARCH HELPDESK
Get exclusive discounts to our training courses, conferences and forums scheduled Receive guidance from our research team to identify the best resources according to
throughout the entire year across 6 continents. your needs and explore The KPI Institute knowledge platforms.
 NETWORKING  ANALYST CONSULTATION

Join your peers! Get and share valuable insights on performance related subjects Benefit from dedicated advisory support from The KPI Institute’s research
within The KPI Institute Community. analysts. Customized secondary projects can be developed on demand.
Professionals already trust The KPI Institute for their

80,000+ business performance solutions!
$390/year $2,900/year $4,900/year

Event discount: $100 off early bird rate Event discount: $100 off 2 or more 1 full certification course or
participants rate conference of your choice
2 KPI Dictionaries
All KPI Dictionaries All KPI Dictionaries
2 Top KPI Reports
All Top KPI Reports All Top KPI Reports
2 Performance Management Toolkits
All Performance Management All Performance Management
2 Webinars Toolkits Toolkits
Preview to Research studies’ executive All Webinars All Webinars
summaries
All Research studies All research library resources
Online guidance for exploring the TKI available
knowledge platforms Phone guidance on you knowledge
platforms Phone guidance for exploring the
TKI knowledge platforms
8 hours of research analyst support
8 hours of research analst support
8 hours of customized secondary
research 8 hours of customized secondary
research
Get exclusive resources as a member of The KPI Institute! Find out more by
visiting kpiinstitute.org/membership
GO PREMIUM
APPENDIX E: SUBSCRIPTION OPTIONS
Explore the world of KPIs
Whether you want to implement a performance measurement system or you need to improve your current framework,
you can choose the best subscription plan to help you inform your KPI Selection.
GET ACCESS TO SMARTKPIS.COM - The largest database of properly documented KPIs
BENEFITS
`` Find relevant KPI examples for your context
`` Obtain high quality KPI documentation
`` Use the KPI documentation form example to design your own
template
`` Export documented KPI examples and instantly create your own
library
`` Receive assistance from experts on matters related to performance
measurement
SELECT THE RIGHT PLAN FOR YOU!
PREVIEW EXPLORE STANDARD PREMIUM

$0/year $39/year $99/year $249/year
100 KPI names 200 KPI names viewed 300 KPIs names and 500 documented KPIs
displayed definitions viewed viewed
Basic access to KPI Basic Detailed Premium

Dashboard documentation level documentation level documentation
access access level access
100 KPI names
200 KPI names 300 documented 500 fully documented
Access to the Top
KPIs - 13 fields KPIs - 24 fields
10 KPIs Access to the Top 10
KPIs Report series Access to the Top Access to the Top
10 and Top 20 KPIs 10 and Top 20 KPIs
Report series Report series
1 Top 25 KPIs
Report at your
choice
Access smartkpis.kpiinstitute.org/pricing and get a glimpse of how your

SUBSCRIBE TODAY
exported KPIs will look like!

APPENDIX G: THE KPI INSTITUTE TRAINING PROGRAMS
Certification Courses
Scheduled Courses in 2016
Find out more at kpiinstitute.org/certification VIEW SCHEDULED COURSES
THE KPI INSTITUTE OFFERS A VARIETY OF CUTTING-EDGE TRAINING PROGRAMS TO MEET YOUR NEEDS
Non-certification Courses
Discover practical solutions, expert-vetted content and tools you can immediately use at the workplace.
 KPI FRAMEWORK
These courses focus on the mastery of a higher performance by deploying the best KPI measurement techniques
and performance improvement initiatives.
 KPI BY INDUSTRIES
Focused on a comprehensive approach to successfully implement a KPI Performance Management Architecture
for certain industries.
 KPI BY FUNCTIONAL AREA

Interactive experience to achieve outstanding results through a performance measurement framework adapted
to particular functional areas.
 BALANCED SCORECARD
These courses are focused on attaining the desired state of organizational evolution by structuring the Balanced
Scorecard implementation process.
 STRATEGY AND PERFORMANCE

Focused on emphasising a roadmap to long-term organizational performance, offering key concepts and clear
foundations for achieving business objectives.
 PERFORMANCE THROUGH PEOPLE

Extensive courses that offer strategic solutions for employee engagement, change management, succession
programs and talent management processes.
 SYSTEMS THINKING BUSINESS SIMULATIONS

These courses provide key tools and valuable insights on process improvement, reengineering and cross-
functional team performance.
 PROCUREMENT AND LOGISTICS

Focused on improving your skills in implementing procurement and logistics based strategies, by expanding your
toolkit of practical procurement tools and techniques.
Fitting the training programs to your needs

All courses can be delivered in-house for groups of people in your organisation. If you’d like to speak to one of our
advisors about your in-house training and development requirements, please call +61 3 9028 2223 or email us at
office@kpiinstitute.org.
Browse programs that focus on the subjects you want to master by visiting EXPLORE TRAINING
store.kpiinstitute.org/training-catalogue PROGRAMS

APPENDIX H: ADVISORY SERVICES
Our data-based advisory services focus on our customers’ most challenging issues
SEIZE OPPORTUNITIES. ACCELERATE BUSINESS PERFORMANCE. EXPLORE SOLUTIONS
Strategy and Business Planning Maturity Benchmarking

Model
`` Strategy and Business Planning Workshops `` Benchmarking Studies Development

`` Strategy Audit `` Secondary Research Benchmarking Surveys
Performance Measurement Performance Improvement
`` Performance Measurement System Implementation `` Organizational Processes Mapping

`` KPIs Advice `` Performance Improvement Workshops
`` KPIs Selection Facilitation `` Performance Reporting
`` KPIs Documentation Assistance `` Projects Performance Improvement
`` Target Setting Workshops `` Portfolio Scorecard and Portfolio Dashboard
Development
`` Data Gathering Workshops
Balanced Scorecard Data Visualization
`` Balanced Scorecard Implementation `` Data Visualization Standards Deployment

`` BSC Workshops `` Data Visualization Workshops
Should you be interested in benefiting from one of our Advisory Services

CONTACT US TODAY
email us at office@kpiinstitute.org and our analysts will contact you.

Employee Performance Supplier Performance
`` Individual Performance Management System `` Supplier Performance System Implementation

`` Organizational Culture Assessment `` Supplier Performance Workshops
`` Employee Engagement Program Implementations `` Alliance Scorecards Development
`` Reward Systems Implementation `` Supply Chain Workshop
Data Analysis Innovation Performance
`` Data Analysis Framework Implementation `` Internal Innovation Framework Development

`` Data Analysis off-site Support `` Innovation Research
`` Data Analysis Workshops `` Research Studies on Innovation Practices
Customer Service Performance Personal Performance
`` Performance Management System Implementation `` Personal Performance Essentials

`` Customer Service KPIs Selection
`` Customer Service Workshops
`` Customer Service Performance Reporting
`` Mystery Client Services
OUR APPROACH
The KPI Institute has been

researching performance
measurement for more than 10
years and has developed not only
the most comprehensive database
of KPI examples, but also its own
KPI Management Framework.
Should you be interested in benefiting from one of our Advisory Services

CONTACT US TODAY
email us at office@kpiinstitute.org and our analysts will contact you.

APPENDIX I: SOFTWARE
Business Intelligence Software
Quickscore is an easy to use, web-based balanced scorecard automation solution that allows an organization to quickly
see results from their balanced scorecard investment.
CHARACTERISTICS
`` Software specialized in organizational

performance measurement
`` Intuitive, robust, fully live and interactive
`` Reliable in any economic environment
`` Offers optimal return on investment
BENEFITS
`` Real time access to data

`` Information and business intelligence
`` Enabled decision-making
`` Visualization, alignment and integration
CONFIGURATION
`` Simple and intuitive data import

`` Data mapping via drag and drop
`` Data automation
`` Real-time monitoring
LIVE DEMO TEST BUY
Choose the perfect tool for measuring performance in your organization and get a free 30 days trial. Order the software
package that most suits you, in terms of price and requirements.
For more information visit http://smartkpis.kpiinstitute.org/software

APPENDIX J: GLOSSARY OF TERMS
The following list provides an explanation of several focusses on the key processes the organization must
popular terms related to KPIs: excel at, in order to provide added value for customers,
and ultimately, shareholders.
Analytics - The process used to discover meaningful
patterns in data. It supports better decision making. Key Performance Indicator (KPI) - A measurable
expression for the achievement of a desired level of results
Best practice - A method that proved to achieve superior
in an area relevant to the evaluated entity’s activity.
results than the ones obtained with other means. Being
that effective, it is generally used as a benchmark. KPI documentation form - A template that structures
relevant information regarding a KPI. The most important
Customer Perspective - One of the four perspectives
fields of a documentation form are the KPI name,
used with the Balanced Scorecard that should bring
Definition, Calculation formula and Target.
visibility into who are the target customers and what is
the value proposition in serving them. Metric - A generic term referring to everything that
can be measured around us, such as: # Air temperature,
Dashboard - In performance management, a dashboard is
# River depth or # Employee’s average height. When
a performance management tool used for monitoring data
metrics reflect the achievement of a desired state they
on a daily basis. It is characterized by visual representations
become KPIs.
of data that enable fast and easy understanding of the
performance status. Objective - A precise statement of what an organization
wants to achieve.
Data capture period - Period for which the results of the
performance indicator have been measured. Scorecard - A performance management tool used to
illustrate performance results and the progress against
Data custodian - The person responsible for providing
established targets. It consists of a collection of KPIs
data in regards to measuring and monitoring KPIs.
correlated with the company’s strategic objectives.
Data reporting - The process of compiling and
Standard reporting frequency - A regular frequency of
communicating performance results.
data reporting for a performance indicator.
Data visualization - Refers to the visual representation
Target - Reflects the desired level to be achieved for a key
of data, in order to better illustrate performance results.
performance indicator, providing meaning to measurement
Documenting KPIs - The process of structuring the results and feedback regarding performance.
most relevant information regarding a KPI, to ensure
Taxonomy - A classification of structures, ordered in a
a standardized approach in working with KPIs and
system, which indicates natural relationships; distribution
facilitating their measurement and analysis of results.
into arranged groups or categories.
Effectiveness - The extent to which objectives are
Traffic Light Colors - Refers to using color signals to
achieved and targets are met, plans are realized, without
visualize the difference between the current situation
considering the resources involved.
and the desired results. Red means that actual results are
Efficiency - The comparison of what is actually produced below targets, yellow is used to express an acceptable
(outputs) with the resources consumed, such as money, deviation from target, while green is used when the
time, labor (inputs). Efficiency takes place when the same desired results were met.
volume of outputs can be produced with less inputs.
Trend - A pattern of continuous change in a condition,
Learning and Growth Perspective - One of the four process or output, or an average or general tendency of a
perspectives used by the Balanced Scorecard that series of data points moving in a fixed direction over time,
monitors human capital, information capital and the which is represented by a line or curve on a graph.
organizational climate.
Financial Perspective - One of the four perspectives used
by the Balanced Scorecard, that informs an organization
whether strategy implementation is leading to improved
financial results.
Internal Process Perspective - One of the four
perspectives used with the Balanced Scorecard that

The KPI Institute is a research institute specialized in business performance. It operates research programs in 12 practice
domains ranging from strategy and KPIs to employee performance and from customer service to innovation performance.
Insights are disseminated through a variety of publications, subscriptions services and through a knowledge platform
available to registered members. Support in deploying these insights in practice is offered globally through training and
advisory services. It manages smartKPIs.com, the result of a research program dedicated to documenting and cataloguing
how KPIs are used in practice. It is an online portal containing the largest collection of well documented KPI examples, with
over 20,600 examples from 16 Functional Areas and 25 Industries. Over the last 12 years, the KPI Institute has assisted
over 48,000 organizations in finding solutions to their KPI needs.
First published in 2011, the Top KPI Reports have now reached their third and improved edition. The novelty in the new Top
KPI reports is an unprecedented design of the KPI Documentation form, as well as, an enriched content of KPIs which can
invaluably assist the measurement process of organizations worldwide.
Is an on-line platform dedicated to performance measurement. It contains more than 20,600 KPI examples, with over 7,000 being
either published or premium documented.
The smartKPIs.com platform joins together examples of KPIs which are specific to the business environment whether at industry
or functional area level. A wide range of KPIs found on the platform are of interest at global level, such as macroeconomic
indicators, social and health indicators or environment and sustainability related KPIs. Other examples of KPIs can be used by
individuals to track productivity, time management, life-work balance, health and budget management.
HUNDREDS OF RESOURCES,
ONLY ONE CLICK AWAY
The KPI Institute’s Research library is the meeting platform of
all professionals interested in accessing first-hand performance
related research, from 12 practice domains!
This section highlights the most notable Performance

Measurement resources available in our Research library.
Research studies Dictionaries
Books Reports
The Top KPIs series of research reports contains a selection

of the most visited KPI examples on smartKPIs.com. Each
report contains KPI examples, inclusive of 26 fields that are
fully documented with organizational specific data. The reports
are available in both electronic and paper format.

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TOP 25

HUMAN RESOURCES KPIS

# Employee engagement index # Time to fill a vacant position % Employee turnover

Publication date: May 2016

# Employee engagement index # Time to fill a vacant position % Employee turnover

Publication date: May 2016

An appropriate citation for this report is:

Top 25 Human Resources KPIs - 2016 Edition Page 3

How to Use This Report 6

About The KPI Institute 10

smartKPIs.com Community Profile 12

2016 smartKPIs.com Functional Areas Taxonomy 14

2016 smartKPIs.com Industries Taxonomy 15

About Key Performance Indicators (KPIs) 18

Advice on KPI Selection 20

KPI Documentation Guidelines 22

Target Setting: From Theory to Practice 24

Data Gathering Dimensions 26

Enhancing Performance Data Through Visualization 28

Human Resources Functional Area 34

Top 25 Human Resources KPIs of 2009-2015 35

Template description: page1 36

Template description: page2 38

# Employee engagement index 40

# Time to fill a vacant position 42

% Performance appraisals completed on time 46

# Training hours per full time equivalent (FTE) 48

% Training penetration rate 50

% Employee retention rate 56

% Internal promotion rate 58

# Employment brand strength 60

# Supervisor to staff ratio 62

# Hours lost due to absenteeism 64

# Recruiter to open requisitions ratio 66

% New hire failure 68

% Job offer acceptance rate 72

# Fringe benefits to basic salary ratio 76

$ Training investment per full time equivalent (FTE) 78

% Paid-time-off (PTO) hours utilization rate 80

# Employee commitment index 82

% Employee cost over sales revenue 84

$ Human capital value added 86

% Human Capital Return on Investment (ROI) 88

Appendix A: Related Reports 90

Appendix B: Reference Collection of Books 92

Appendix C: Performance Management Toolkits 94

Appendix D: Performance Magazine 95

Appendix G: Training Courses 98

Appendix H: Advisory Services 100

Appendix I: Software 102

Appendix J: Glossary of Terms 104

Top 25 Human Resources KPIs - 2016 Edition Page 5

KPI 4 % Budget variance

Page 46 www.kpiinstitute.org Top 25 Accounting KPIs - 2016 Edition Page 47

Top 25 Human Resources KPIs - 2016 Edition Page 7

Value added by Top KPIs Reports to practice

REPORT PURPOSE RESULT

Top 5 Human Resources KPIs 2009-2015

# Training hours per full time 2206

# Time to fill a vacant position 3931

# Employee engagement index 4682

Top 25 Human Resources KPIs - 2016 Edition Page 9

6,240 4,408 4,596