Key Performance Indicators or in Indonesian also known as Performance Indicators. This KPI is very important for the organization because it is usually considered to have an effect on the success of the company. The definition of KPI or Key Performance Indicator is that KPI is a financial or non-financial metric used to help an organization determine and measure progress towards organizational goals. This can include financial metrics, such as revenue or profit targets, customer metrics, such as new user growth rate, and supply chain metrics, such as delivery times.

KPIs differ depending on the nature and strategy of the organization. Simply put, KPIs help a company understand how it is performing in the areas that are most critical to its success. It is used to assess the current state of a business and determine an action against that situation.

KPIs are often used to assess activities that are difficult to measure such as leadership development benefits, engagement, service, and satisfaction. KPIs are generally linked to organizational strategy which, for example, is implemented by techniques such as the balanced scorecard (BSC). KPIs are useful decision-making tools, as they can help reduce the complex nature of organizational performance to a small number of key indicators that can be managed.

In relation to the measurement of KPI on employees, it is usually applied to see how well the employee can personally complete the targets and indicators of assessing their achievements. The better the results obtained, the more these achievements can be used as one of the supporters of the employee's career development.

There are many ways and methods of measuring KPIs, one of which is using the human resource application system or the HRIS system. The use of the HRIS system is considered by many HR practitioners to be quite easy, efficient and effective. Want to know more about how Em-HR can help you measure employee KPIs in your company. Try it for free here. 

*Quoted from various sources