How to develop a kpi for an HR employee. Important HR metrics for HR. Job closure rate

In order for the activity of one or another division of the company to be effective, it is necessary to be able to evaluate it. This can be done using the system key indicators efficiency (KPI).

KPI principles

The essence of the management method using KPI (from the English. Key Performance Indicator) consists in building a "tree of goals" (in other words - "standards"), closely linked to the business objectives of the company (or a separate division, or even an individual employee) and monitoring the implementation of each standard. The method allows you to control key parameters in a given corridor, build effective system motivate employees, timely find critical points and bottlenecks in the work of departments or the organization as a whole.

It must be remembered that for each company, the set of KPIs can be completely different, just as the global goals and objectives of enterprises will be different. For example, if the main goal is "to become the most profitable company in our market segment”, then KPIs will primarily focus on measuring profitability and related values. And, let's say, at a secondary school, which is not commercial organization, there will be a completely different set of KPIs (one of the indicators may be the number of students who entered the university after graduation).

It is very important to consider the measurability of indicators. For example, formulate KPI in the form of "attract more orders from regular customers” is not worth it if it is difficult for us to separate new orders from repeat orders.

The implementation of KPI is not an easy task, it requires the participation of both top management and department heads and employees, that is, in fact, the entire organization.

Using the method for the personnel management service

When building a KPI system for the HR department, it is necessary to be guided by the following principle: the set of indicators by which the head of the service is evaluated should be as close as possible to the set of key tasks of the unit (ideally, completely coincide with the list of tasks of the unit, reflected in the position on the department). At the same time, it is necessary to go from the strategic goals of the company through the business tasks as a whole, concretizing them to the level of the tasks of the unit.

The main purpose of the HR service is effective use organization employees. It includes activities for planning, recruitment, selection, adaptation, training, personnel assessment, as well as remuneration, compensation, benefits and labor safety.

When building a KPI, you can focus on the following indicators:

staff turnover - the ratio of employees who left the organization to the total number of employees;

labor and performance discipline(number of violations, penalties, the number of dismissed as a result of this);

attestation (the number of those subject to attestation who have passed it);

number of people trained in reporting period;

state and structure personnel reserve, the number of reservists;

labor productivity;

staffing (speed of filling vacancies, percentage of failed probation, the cost of hiring one employee).

Separately, I want to say about personnel records. This is a large area at the intersection of HR and accounting, and here you can focus indicators on the success of audits labor inspectorate, as well as the frequency of complaints from employees on the preparation of personnel documentation.

Top 5 most common KPI's:

Labor productivity management.

Reducing the loss of working hours of the company's employees.

Staffing, timely filling of vacancies.

Reduced fluidity.

Implementation of the personnel budget.

Example of a tree of standards:

Staff turnover (specific gravity –3)

The cost of hiring one employee (3 points out of 10; share -1)

Total turnover costs (7 points out of 10; specific gravity -3)

The value (coefficient) of fluidity (8 points out of 10; specific gravity -1)

Time to fill one vacancy (4 points out of 10; share -3)

The term (time) of work of one employee in the company (5 points out of 10; share -2).

Recruitment (specific gravity -3)

Vacant period by position (8 points out of 10; share -2)

Development of kpi for the personnel service.

Answer

Answer to the question:

When developing key performance indicators for HR employees, develop own indicators, which will take into account all the features of the work of a specialist, or use typical indicators developed for employees of similar specialties in other organizations.

In the latter case, it is necessary to study typical indicators and make a deep analysis of the possibility of a complete and qualitative assessment of the work of specialists in your organization with their help. The fact is that due to the specifics of the work of the organization and a particular employee, it is not always possible to apply to him the performance indicators used in other companies (they do not allow you to fully evaluate his contribution to the process).

Examples of KPIs for a HR document management specialist

Name of key performance indicator (KPI)	Description	Definition method
Compliance of personnel documents with established requirements	Determines the quality of the issued documentation	Identify the set of documents executed without errors. For example: out of 50 sample documents - 100%, 50%, 25% are issued without errors
Final score based on the results of a regular independent audit of personnel documents	Determines the quality of execution of personnel documents within the framework of the requirements of labor legislation and the requirements of the organization's regulations	Analogue of the first indicator, but used in case of regular audit personnel office work
Number of processed documents	Determines the load and speed of registration of personnel procedures and documents	Determine the total number of documents processed per month per HR specialist
Terms of document processing	Determines the timeliness of paperwork and personnel procedures	Define as the period from filing an application for processing or processing a document to transfer to the customer. For example: on the set date, earlier, later
Document management costs	Determines the total cost of organizing a process	For example, the critical cost of releasing personnel is determined: payments under a court decision, the amount of payments for dismissal, the amount of compensation by agreement of the parties
Number of fines and orders	Determines the quality of registration of personnel documents within the framework of the requirements of labor legislation	Analysis of prescriptions and fines accrued based on the results of an audit by the labor inspectorate and other inspection bodies in relation to personnel procedures

As you know, the KPI system is built on the basis of the company's goals. The purpose of the personnel service is the effective use of the employees of the organization. It is implemented through planning, selection, adaptation, training, personnel assessment, as well as remuneration, compensation and labor safety measures. Once the goals are defined, they are converted into tasks for each employee. Appropriate indicators are then selected that can be used to assess the extent to which these goals have been achieved.

When developing a KPI, remember that, first, each indicator must have a name, definition, weight, and an established method for measurement. Secondly, employees must be given the opportunity to influence the setting of targets. Thirdly, you should not set more than five KPIs, this will make it difficult to process the results and there is a risk that the employee will focus on secondary goals. The list of possible KPIs for the HR service is in the table below.

Position	Performance indicators
HR Director	– staff turnover
	- closing time of the vacancy; - recruitment costs
Training Manager	– The quality of education; - training costs;
Valuation Manager	– implementation of the assessment plan; – the quality of the evaluation; – evaluation costs
motivation manager

KPI for the evaluation manager.

The variable part of the salary of such an employee will depend on the KPI percentage earned per month. So, for example, if he has a salary of 20,000 rubles, the maximum variable part is also 20,000 rubles. If he completes the work by 50%, he will receive 30,000 rubles (instead of the maximum 40,000 rubles).

Such planning can be carried out for each personnel officer. Payroll will be the same.

Details in the materials of the System Personnel:

1. Magazines and books:

Personnel / Motivation and remuneration

We figure out what KPIs to evaluate employees of the HR service

Problem 1. How to develop KPI for each HR employee?

Problem 2 Who should set the KPI for the HR director?

Problem 3. What to do if KPI is not met?

KPIs (key performance indicators) are now actively used to motivate staff, linking results to pay. But main mistake many companies in that they choose the wrong indicators for evaluation or estimate the maximum number of them. Therefore, the primary task when creating a KPI system is to correctly develop indicators for each employee so that the staff has a clear understanding of what goals need to be achieved and what reward will be for this. Let's take a look at what KPIs can be set for HR employees, how to determine their significance and how to measure them.

We set KPI for each employee of the HR service

As you know, the KPI system is built on the basis of the company's goals. The purpose of the personnel service is the effective use of the employees of the organization. It is implemented through planning, selection, adaptation, training, personnel assessment, as well as remuneration, compensation and labor safety measures. Once the goals are defined, they are converted into tasks for each employee. Appropriate indicators are then selected that can be used to assess the extent to which these goals have been achieved.

When developing a KPI, remember that, first, each indicator must have a name, definition, weight, and an established method for measurement. Secondly, employees must be given the opportunity to influence the setting of targets. Thirdly, you should not set more than five KPIs, this will make it difficult to process the results and there is a risk that the employee will focus on secondary goals. Let's look at what indicators can be set for the recruiting, training, evaluation manager and HR director (the list of possible KPIs for the HR service is in the table below).

List of possible KPIs for HR employees

Position	Performance indicators
HR Director	– Compliance with the staff budget; - the quality of building a system of motivation and incentives; - financial return on staff costs; – staff turnover
HR manager	– Number of filled vacancies; - closing time of the vacancy; - recruitment costs - employee turnover during the probationary period
Training Manager	– The quality of education; – number of trained employees; - training costs; - the number of events carried out
Valuation Manager	– Number of developed job profiles; – implementation of the assessment plan; – the quality of the evaluation; – evaluation costs
motivation manager	– Turnover among HiPo-employees (employees with high potential); - the difference between the income of efficient and inefficient employees; - the cost of staff motivation; – implementation of the personnel motivation plan
Manager corporate culture	– Number of corporate events; - the number of employees who attended the events; – satisfaction or involvement of employees in activities; - development of communication channels in the company

KPI for the recruiting manager. The task of this specialist is to fill the vacancies of the company in time and in the right amount. Based on this, the recruiting manager can set such indicators.
– Time of vacancy closing (number of days of work on all vacancies during the reporting period: total number of closed vacancies).
– Number of closed vacancies ((number of closed vacancies / total number of vacancies) × 100%).
– Recruitment costs (total costs for all hired employees / number of hired employees).
– Personnel turnover during the probationary period ((number of employees who successfully passed the probationary period / total number of employees hired) × 100%).

Do not set a large number of KPIs, five indicators are enough

KPI for training manager. For this specialist, we recommend setting not only quantitative indicators (number of organized events, training costs, etc.), but also qualitative. Indeed, in training, it is important not so much the number of trainings conducted, but its success, the ability to apply the acquired skills in practice. So Special attention pay attention to such an indicator as the quality of education. It consists of the form of training (what the manager chose: a training or a seminar, a business game or simulation games), the conditions in which the training took place (chosen premises, equipment, etc.), and the quality of the knowledge gained. How well the employees have trained is checked by testing the acquired knowledge. The indicator will be the number of correct answers to the total number of test questions. The quality is also checked by evaluation of satisfaction with training.

Irina KOMAROVA, HR Manager, Bytservis LLC (Barnaul):

“The following performance indicators can be set for the training manager:
- the volume of training / the number of employees trained during the year, the number of hours per employee (compare the training plan with what was done in reality);
- the total amount of training costs (check what was included in the budget and the amounts spent);
- the number of employees who confirmed their qualifications to total strength personnel or the number of those who have confirmed their qualifications to the total number of trained employees;
- the number of employees who regularly undergo competency assessments, namely: the percentage of training programs that are planned to be carried out based on the results of the assessment.

KPI for the evaluation manager.

The work of this specialist, as a rule, is measured by quantitative indicators. Here are the most common ones.

– Number of completed job profiles ((fact / plan) × 100%). Position profiles are the working tool of the evaluation manager, they are necessary in order to carry out quality evaluation activities.

– Implementation of the assessment plan ((fact / plan) × 100%). This indicator is used if the company evaluates employees on a regular basis.

– Compliance with the evaluation schedule ((number of activities carried out on time / total number of activities carried out) × 100%). Evaluating by this indicator, consider how the schedule was violated.

– Evaluation costs ((actual budget / planned budget) × 100%). The indicator allows you to get an idea of whether the manager correctly forecasts costs and how he uses the budget allocated for the assessment.

– The quality of the assessment (how many employees who passed the assessment improved their results ((number of employees who improved their results / number of employees who passed the assessment) × 100%). The indicator helps to understand whether the manager correctly identifies the competencies that employees need to develop after evaluation.

Start weighting for KPIs with more significant indicators

KPI for HR Director. The indicators by which the head of the service is evaluated should be as close as possible to the set of key tasks of the unit, and ideally completely coincide with it. Based on the traditional terms of reference of the director of personnel, the following indicators can be set for him.

– Compliance with the staff budget ((actual costs / planned costs) × 100). The indicator makes it clear whether the HR director manages to predict personnel costs (including payroll) and stick to them.

– Staff turnover ((number of dismissed employees / average number employees) × 100%).

– Financial return on personnel costs (production volume (in monetary terms) / actual personnel costs). Using this formula, you will find out how many products a company produces for every dollar spent on staff.

- Employee job satisfaction. The indicator is calculated based on the survey data ((number of loyal employees/ number of respondents) × 100%).

Based on business tasks, the following indicators can also be set for the director: standardization of the work of the HR department, automation of HR processes, centralization of HR functions, building a system of motivation and incentives, and formation of an HR brand.

Anna FOMICHEVA, HR expert, candidate of pedagogical sciences, associate professor (Moscow):

“When deciding on the development of KPI for the HR director, it is necessary to analyze at what stage of business development the company is and what strategic goals it sets for itself. KPI parameters for the so-called cost units, which include the HR service, take place when the targets and expected results in all areas of the company as a whole are transparent and understandable. Based on this, it is possible to prescribe KPI for the HR director, who, in turn, is not only a responsible executor, but also an internal business partner. It is in this case that it will be clear in which business projects HR will be involved (in addition to the initially traditional ones), what activities and how it will be carried out and how the result will affect the final achievement strategic goal. The score will be made up of values that reflect how successfully HR will cope with the tasks.”

How to set KPI weight

In order to establish the weight, it is necessary to find out the significance of each indicator based on the strategic goals of the company. For example, if it is important for your company that employees improve their performance after an assessment, then assign a significant weight (50 percent) to the quality of the assessment. Let's say that the assessment is carried out irregularly, the schedule is not so important to follow, which means that you assign a low weight (10 percent) to this indicator. Please note that the weight can be set both as a percentage and as a share.

In addition, remember that the weighting should begin with more significant indicators, the weight of the indicator should not be “heavier” than 50 percent and “lighter” 5 percent (in shares - from 0.05 to 0.5), KPI with a subjective assessment should not should have a large weight, the sum of all KPIs should be 100 percent (in shares - 1). An example of weight placement - see below

Weight KPI training manager

How to measure performance indicators

Advice

Remember that quantitative indicators must be countable to ensure their measurability, and qualitative indicators must be comparable.

In order to measure the indicators, each of them is assigned a plan (the desired level of results for this indicator), weight (shows the significance of the indicator), fact (the actual value of the indicator for the specified period). The results are then compared based on the fact that each indicator has been met (example below). But you can also compare KPIs according to the norm, that is, according to the lower limit value of the performance of the indicator (example below). The final results obtained by comparison are used to calculate the premium.

Comparison of KPI results after completion

Indicator (in shares)	Plan	Fact	Weight	Execution (weight × (fact / plan))
Compliance with the evaluation schedule	1	0,7	0,1	0,07
Execution of the evaluation plan	1	0,8	0,1	0,08
	0,7	0,5	0,3	0,21
Appraisal costs	1	1	0,5	0,5
TOTAL:	1	0,86

Comparison of KPI results according to the norm

Indicator (in shares)	Plan	Fact	Norm	Result
Compliance with the evaluation schedule	0,9	0,7	0,8	Done
Execution of the evaluation plan	1	0,7	0,9	Not done
Number of developed job profiles	0,7	0,5	0,6	Not done
Appraisal costs	1	1	1	Done
TOTAL:	0,5

We recommend using a comparison of indicators after the fact of implementation, since the norm is not flexible and attractive to employees and requires constant revision. In addition, seeing that the norm is not being met, the employee may no longer work on the indicator.

What to do if KPI is not met

If the KPI is not being met, you need to find the reasons for this and eliminate them. Among the reasons for the inefficient work of the system of indicators are:
– inability to measure indicators;
- inconsistency of indicators with the goals of the company;
- inefficient management (mistakes in planning the work of the unit by the head, setting tasks for subordinates and monitoring execution).

And, of course, one of the main factors is the failure of the employee to meet the targets for good and bad reasons. For example, when setting KPIs, the influence of other indicators was not taken into account. Let's say the assessment shows that the recruiting manager does not meet the indicator "Number of closed vacancies", and in fact, the influence of another indicator - "difficulty of closed vacancies" was not taken into account. The employee filled only two vacancies out of five, but this is the management team of the company.

Irina SHENDRIK, Head of Compensation and Benefits Department, ZAO Teplocom Holding Management Company (St. Petersburg):

“KPI failure can occur for several reasons, among them: - incorrect definition of indicators; - incorrect definition of evaluation criteria. Incorrect definition of indicators may be the result of incorrect construction of business processes, the establishment of indicators that are not important in current activities, so they are performed last, or setting indicators that the employee cannot influence. For example, often the personnel department is set an indicator - the percentage of the company's employees passing the probationary period. This indicator is not feasible if the heads of departments do not have a similar one, since, as a rule, the immediate supervisor influences the result of the probationary period. Incorrect definition of evaluation criteria implies the establishment of incorrect deadlines or percentages of completion. It is not for nothing that one of the principles of KPI is realism.

The material was prepared by Oksana VILINSKAYA, leading expert of the Kadrovoe Delo magazine

With respect and wishes for comfortable work, Svetlana Gorshneva,

Expert Systems Personnel

In the article we will tell you what key performance indicators (KPIs) are, how KPIs are calculated. We give detailed step by step algorithm to implement KPIs. We will tell you how to use this indicator to motivate staff. Bonus - table with KPI examples for the personnel officer.

From this article you will learn:

★ Staff motivation

What is KPI

Deciphering KPI means translated from English (Key Performance Indicators) - "key performance indicators". Sometimes KPIs are translated as "Key Performance Indicators", but this variant is less common. The KPI system is used by large corporations with a developed network of branches and a large staff.

KPI is important and effective tool HR manager who will allow:

Assess the performance of staff.
Monitor how efficiency is maintained throughout the workflow.
Manage workflow.
Set specific goals for your staff.

Explaining to management and employees what kpi is in simple words will help you Alla Piskunova, HR Director of LGK-Logistics:

Example of key performance indicators (kpi)

In state big store household appliances 12 sales consultants. The HR manager of the store evaluates the performance of the sellers according to the following criteria:

Criterion #1- the ratio of the number of buyers with whom the seller communicated with the number of those who subsequently made a purchase (in percent);

Criterion #2- average check of the buyer;

Criterion #3- the percentage of overfulfillment of the plan.

This minimum set of criteria already allows you to calculate the KPI (key indicators) of the seller and evaluate its effectiveness. The HR manager can monitor the implementation of KPIs and maintaining efficiency throughout the day or month. The experts of the HR Director magazine will tell you,

By definition, KPI allows you to manage the workflow and set specific tasks for the staff. How it works in practice:

In our example, the minimum set of criteria for calculating KPI. In practice, the average number of KPI criteria is 5-8.

Examples of KPIs for a HR document management specialist

Types of key performance indicators

Key performance indicators are simple and derivative.

Examples of simple KPIs:

KPI result (outcome indicators, expressed quantitatively or qualitatively);
Cost KPIs (indicators of the number of costs).

Examples of derived KPIs:

KPI performance - the ratio of the result and the time spent;
Efficiency KPI - the ratio of the result and the resources spent.

The experts of the magazine "Director of Human Resources" will tell you,

and understand if you made a mistake when setting KPIs for them.

3 main principlesKPI development

Principle #1.KPIsshould be simple and easily measurable.

This will enable comparison and prevent misinformation.

Principle number 2. The cost of measurement should be lower than the benefit ofimplementation of KPI.

Too complicated and expensive procedure for measuring indicators will negate all the advantages of switching to KPI.

Principle number 3. The measurement results should be used in the work.

If you measure indicators only for the report and do not take any further steps, then the measurements are meaningless.

The experts of System Kadra will teach competently

Pros and cons of KPIs


employees work 20-30% more efficiently; employees understand what tasks to perform in the first place; the employee corrects the work according to the lagging indicator; problems can be detected at the stage of their occurrence; fair settlement wages; effective system of material motivation.	not all performance indicators can be measured quantitatively (for example, in education, medicine); the implementation of the KPI system is an expensive, lengthy and time-consuming procedure. each indicator must be measured and described in detail; At first, employees will perceive new system in bayonets. It will take a long time to explain, convince and retrain.

Howcalculate KPI: algorithm and example

AlgorithmKPI calculation

Step 1. Choose from 3 to 5 performance indicators.

For example, indicators for the seller of an online store:

New customers.
Buyers who have reordered.
positive recommendations.

Step 2 We determine the weight of each indicator. The total weight of the indicators is 1, and the most important one has the highest weight.

New customers - 0.5.
Buyers who made a second order - 0.25.
Positive recommendations - 0.25.

Step 3 We collect and analyze data on selected indicators during the month.

Step 4 We calculate KPI using the formula:

KPI index \u003d Indicator weight * Actual / Plan

Fact - actual result

Plan - planned result.

Step 5 We calculate the salary taking into account the KPI index.

Example of KPI calculation

Such a calculation system motivates sellers to attract new customers and work with old ones.

Use the materials of "System Personnel":

Sales KPI Matrix

Forwarding driver KPI matrix

Implementation of KPI in the company: 7 stages

Stage 1. Find out what indicators affect profit. We determine who in the company influences these indicators.

Stage 2. We select key indicators, i.e. indicators that have the greatest impact on profits. We appoint an employee responsible for them. For each department, we assign 2-3 clear KPIs.

Stage 3. We explain to employees how the achievement of key indicators affects wages (financially motivate them).

Stage 4. We monitor whether the employee is able to achieve targets. If yes, go straight to Stage 6. If not - to Stage 5.

Stage 5. We find out the reason. If the employee is not at fault, we change the conditions. If an employee fails, we change to another.

Stage 6. We constantly adjust the KPI system - remove obsolete indicators and add new ones.

Stage 7. We are adjusting the motivation system: we explain what parameters and how they will affect wages.

KPIs are key performance indicators for an employee. The KPI system is used by large corporations with a developed network of branches.

KPI is an HR manager's tool that will allow you to evaluate the performance of your staff, manage your workflow, and set specific goals for your staff.

KPI in departments of personnel management services (Shkrebelo A.)

Article placement date: 08/26/2012

To increase the productivity of an enterprise, a rational incentive system is needed. In order for this system to work effectively, it is necessary to motivate the personnel management service. In this regard, it is advisable to introduce a system of key performance indicators in the activities of the personnel department.

When developing a KPI system, an enterprise, as a rule, sets itself one of two tasks - either to organize a system for objective monitoring of the activities of departments and employees, or to "cascade a strategy". The latter means focusing the efforts of all departments on achieving key performance indicators that are important for the implementation of the strategy.
Despite the natural desire to combine both of these goals, the top management of any company needs to immediately decide which of them is a priority. Based on the choice made, a KPI system will be developed and subsequently implemented.
In this article, we will focus on the first task - the organization of systematic objective monitoring of the activities of the personnel management unit and the employees of this unit.

Three companies

You can develop a KPI system in any company, no matter what it does, no matter what it is. organizational structure regardless of the number of employees. The performance of any functions can be measured, and the staff can be assessed for the result obtained - whether it achieves or does not achieve the specified parameters.
Every company has a human resources department. Despite the fact that the functions and composition of this unit differ, the basic task is identical. At the same time, it is natural that if all functions are performed by one person, for example, the head of the personnel department, then the KPIs of this department will be fully applicable to such a person.
As an example, consider three companies.
The first (company "A") is engaged in the production building materials. The number of personnel is 300 people. Of these, the administration - 32 employees. The functions of personnel management are performed by the personnel department, consisting of 2 people, headed by the head of the department, who reports directly to the general director.
The second (company "B") is engaged in research activities, conducts clinical trials of new pharmaceuticals. This organization employs 55 people. In its structure there is a personnel service, consisting of 3 people and subordinate to the deputy CEO for development.
The third (company "B") carries out trade-purchasing and intermediary activities. She purchases various goods in China consumer goods and sells them in Russia under its own brand. The number of personnel is more than 2300 people. The company has many branches and representative offices on the territory of the Russian Federation.
The functions of personnel management are centralized at the head office - in the HR service, which consists of the personnel department (3 people) and the personnel development department (6 people). Each branch has a specialist personnel service responsible for maintaining personnel records at the local level.

Simple moves

There are many ways to determine the main tasks of the unit - from simple interviewing of the head to the analysis of the document flow of the entire company. but wide choose can lead to confusion.
Whatever the developers are trying to do to clearly systematize the activities of any unit! They monitor incoming and outgoing correspondence, measure the use of working time by specialists of the unit with the maximum fixation of all actions performed, participate in all meetings, etc. While there is a fairly simple way to clearly and clearly define the main tasks of the unit. It consists in performing three actions in sequence.
The first is to get from the top manager in charge of the specified department an answer to the question: "For what exactly does the head of the department regularly report to you?"
The second step involves conducting an interview with the head of the department responsible for the HR function.
The third step is to analyze the workflow of the unit to determine the situation.
That is, it is necessary to find out which functions of personnel management are performed by the department and which are not. At the same time, one must understand that if any of the functions is missing, this is not at all a sign of poor-quality work of the management - perhaps this is the specifics of the company's work. Therefore, on this stage this fact should be taken into account and, possibly, returned to it in the future, if for some reason the planned indicators of the unit responsible for personnel management are not achieved.
Systematizing the tasks of the personnel management service, it is necessary to clearly understand that the personnel management function includes the following main components:
- management of selection, placement, rotation and release of personnel;

- Maintaining personnel records in the company.

Service responds

The answer of the top manager to the question asked about what exactly the personnel management service reports on is extremely important for the developers of the KPI system, as it sets its basis.
Let's analyze the answers of the top management of companies to the question asked.
Company "A" for:
- selection of personnel;
- staff turnover;
- discipline in the enterprise;
- HR documentation.
From the responses received, it is clear that in company "A" the personnel department is engaged in personnel document management, recruitment and discipline issues.
A subsequent interview with the Head of Human Resources and an analysis of the unit's workflow confirmed these findings. Therefore, it became necessary to add functions for the development of regulatory documentation for each department.
Company "B" for:
- staff turnover;
- high level of personnel qualification;
- the level of staff satisfaction with working conditions;
- high level of staff motivation.
An interview with the head of the service made it possible to supplement this list with the function of monitoring wages in the industry and determining the appropriate motivational packages for each level of personnel.
The functions of personnel office work at the enterprise were transferred to outsourcing.
Company "B" for:
- selection of personnel;
- HR document flow;
- Compliance of the salary level of the personnel with the market average;
- correspondence of the actual payroll to planned values.
An analysis of the unit's workflow revealed that line managers deal with the selection, placement and rotation of personnel. At the same time, the personnel management service is notified of all changes made.

Step by step

Thus, having carried out at this stage a few simple sequential steps, we get a systematic vision of the functions, tasks, main reporting materials and the area of responsibility of the personnel management service.
We detail our steps.
Determination of the basic areas of responsibility of the personnel management function:
- management of the selection, placement, rotation and release of the company's personnel;
- personnel motivation management;
- Maintaining personnel records.
Obtaining a detailed answer to the question: "In what exactly does the head of the personnel management service regularly report to you?" from one of the top executives in charge of the unit.
Conducting an interview with the head of the personnel management service in order to form a holistic understanding of the work of the department.
Analysis of the workflow for the formation of areas of responsibility in relation to the basic areas of responsibility of the functions of personnel management (clause 1).
Having formed a list of tasks of the personnel management department at the first stage of work, it is necessary to determine the meters for each of these functions. This work is purely analytical and at the initial stage does not require interaction with the personnel of the service.
The only documentation required here is the reporting forms that the head of human resources fills out when he sends the report to his manager. These forms will help to seamlessly integrate the KPI system into the existing reporting system.

Personal data

To determine the measurers of functions, it is necessary to decide how the execution of each task in the company's personnel management service is fixed. Based on the results of the analysis, for each organization, the names of indicators should be obtained, in accordance with which the HR department will report.
The totality of KPI should, on the one hand, reflect the amount of work performed, and on the other hand, give this volume quality assessment. At the same time, the list of criteria should not be redundant.
Thus, if we take from the results of the first stage a list of functions and tasks for each of the companies under consideration, the set of indicators will look like this.
Company "A"
- recruitment - not exceeding the deadlines for closing vacancies (percentage, the ratio of vacancies with exceeding the deadlines for closing to the total number of announced vacancies for the period);

- discipline at the enterprise - the dynamics of changes in the number of identified violations of production discipline (percentage, the ratio of violations detected to the inspections carried out in accordance with the current mandatory inspection regulations);
- personnel document flow - dynamics of the number of identified violations of personnel document management during the annual independent audit of personnel documentation (number of violations).
Company "B"
- staff turnover - the level of average annual staff turnover;
- staff qualification level - the share of personnel who reduced the indicators of professional compliance as part of the annual certification (percentage, the ratio of those who lowered the indicator of professional compliance to the total number of those being certified);
- the level of staff satisfaction with working conditions - the share of personnel dissatisfied with working conditions (percentage, the ratio of dissatisfied employees according to the annual survey to the total number of respondents);
- the level of staff motivation - the share of staff with a low level of motivation (percentage, the ratio of employees with a low level of motivation indicator according to the annual survey to the total number of respondents).
Company "B"
- selection of personnel - not exceeding the deadlines for closing vacancies;
- personnel document flow - the dynamics of identified violations of personnel document management during the annual independent audit of personnel documentation;
- Compliance of wages with the market average - the total wages of employees in the range of deviations "plus 30% - minus 20%" from the average value in the market (in percent);
- compliance of the actual payroll fund with planned values - correspondence of the actual payroll amount for the reporting period to its planned value (in percent).

Who is responsible

After receiving the primary result according to KPI, it must be agreed with the head of the personnel service and with the supervising head of the enterprise. It is necessary to evaluate how it corresponds to the tasks, whether it is convenient to use it, whether it fully provides information on which indicators can be calculated.
Typically, the number of KPIs is in the range of 3 - 5 units and almost never exceeds 6. It is extremely difficult to manage a large amount of data. Yes, and it is inappropriate.
Thus, to develop a list of KPIs, it is necessary:
- refer to the previously formed list of tasks of the personnel management service;
- get a reporting form for senior management in the service (if any);
- for each function, determine the result and the meter.
After the indicators are formed, it is necessary to systematize the data for their calculation.
Determine the formula for each KPI, the source from which you will take the data, and the update period for the indicator (once a week, month, quarter or year).
The next step is to determine the current target values of indicators. Here, the main responsibility of the developer will be the compliance of the target values with the planned indicators for the company.
Separately, it is necessary to pay attention to the fact that as part of the development of the KPI system, it is not expected to change any of the accounting or planning systems in the enterprise - this is not the task of the KPI system development process.
An attempt to combine system development and adjustment of the processes in the company will significantly reduce the likelihood of a successful implementation of the KPI system in the company.
To determine the target KPI values, you need to:
- determine the current value of each indicator;
- obtain complete information on all plans in force at the enterprise (financial, production, marketing, etc.) in relation to each indicator;
- identify the target value of the indicator, based on the current plans at the enterprise;
- determine the person responsible for working with the indicator in the personnel management service.
In the absolute majority of cases, the number of plans in the enterprise is huge, and the difference in the target values of indicators in these plans makes the work extremely difficult. Moreover, sometimes differences are revealed not in 3 - 5%, which could be explained by the error in the calculations, but many times higher.
In this case, the developer does not have the opportunity to independently determine which of the plans is more important. To do this, it is necessary to involve the functional management of the company, as well as get an answer to the question: what data should be used from the top manager in charge of the personnel management service?
If it is impossible to determine indicators based on existing plans (for example, when such plans simply do not exist), it is necessary to involve the head of the personnel department and his immediate supervisor-curator in the process of determining the target KPI values. After that, the result should be agreed with each top manager.
This step is extremely important, because in the absence of formalized plans, each of the top managers has own plan"in the head", which is not agreed with anyone. But at the same time, the manager acts in accordance with him, and the developed KPI system of the personnel management service may well not correspond to his vision, which will greatly complicate the subsequent work of the unit.
Ultimately, the KPI system should be organized in a table with the following columns:
- Name;
- units;
- updating period;
- present value;
- target value;
- service employee responsible for KPI calculation.
An employee of the personnel management service responsible for the indicator is a person whose duties include monitoring the current level of KPI, regularly analyzing the achievability of its target level, initiating questions related to accelerating any processes that affect the achievement of one or another criterion. At the same time, this specialist is not the person responsible for achieving the target value of the reportable indicator.
The head of the service is responsible for achieving the target level of all indicators of the personnel management service.

Controlling stake

When implementing a KPI system in the personnel management service, an enterprise inevitably faces two questions - how to control indicators and how to motivate the department to achieve target values.
Control over KPI must be established systematically. For example, in the plan of meetings at the level of the company's management, include a quarterly meeting, the main issue of which will be the analysis of the work of the personnel management service. As part of this meeting, the head of the service will be required to report on the achievement of the target values for each of the indicators.
If any of the target values could not be achieved, the head of the department needs a comprehensive analysis of the current situation. Here you should determine the reason that did not allow reaching the specified level of the indicator (for example, an employee wrote applications to the financial department, but they were not fulfilled).
Within the framework of the same meeting, it is necessary to identify the main problem that prevented the achievement of a given level of criterion, and find ways to systematically solve it. It is also necessary that the head of the service each time send a report on the implementation of KPI plans to top managers participating in the meeting in advance.
To motivate the personnel of the service, it is extremely important to involve all its employees in the process of achieving the target values of the KPI system. Usually, for this, changes are made to the motivation package - the achievement of target KPI values becomes one of the main factors affecting the level of bonus payments to these employees. So, for the head of the service, the share of the KPI system in the total amount of bonus payments averages 35 - 60%, and the line staff of the department responsible for maintaining a particular indicator is 15 - 35%.
Thus, we found that the implementation of the KPI system in the personnel management service is not such a difficult process. It includes only two main stages:
- formation of a reporting system according to KPI (approval of reporting forms, frequency and form of presentation of material).
- development of a motivation system that guides all employees of the personnel management service to achieve the target KPI values.

Good advice

In conclusion, we list simple recommendations that will allow you to quickly and easily minimal cost develop and implement a KPI system in the personnel management service.
Decide on the objectives of the KPI system.
Appoint experienced professionals responsible for performance in the unit.
Form a list of KPIs of no more than 3 - 5 units.
If there are no plans in the company, organize their development immediately after the implementation of the KPI system in the personnel management service.
The importance of these indicators should not be underestimated. On the contrary, motivate the responsible specialists of the department to achieve the KPI targets with an essential part of their compensation package.
Involve the top manager in charge of the HR department in the development process.
Do not neglect intermediate agreements with managers after developing a list of indicators, their current and target values.
In addition, do not stop at developing a KPI system in the personnel management service, involve other departments.
Finally, the last. Don't demonize or canonize the KPI system. This is a simple and completely logical approach. It focuses the activities of departments on goals that are significant for the entire company.

In order for the activity of one or another division of the company to be effective, it is necessary to be able to evaluate it. This can be done using a system of key performance indicators (KPIs).

KPI principles

The essence of the management method using KPI (from the English. Key Performance Indicator) consists in building a "tree of goals" (in other words - "standards"), closely linked to the business objectives of the company (or a separate division, or even an individual employee) and monitoring the implementation of each standard. The method allows you to control the key parameters in a given corridor, build an effective system of employee motivation, timely find critical points and bottlenecks in the work of departments or the organization as a whole.

It must be remembered that for each company, the set of KPIs can be completely different, just as the global goals and objectives of enterprises will be different. For example, if the main goal is “to become the most profitable company in our market segment”, then KPIs will primarily focus on measuring profitability and related values. And, let's say, a secondary school, which is not a commercial organization, will have a completely different set of KPIs (one of the indicators may be the number of students who entered the university after graduation).

It is very important to consider the measurability of indicators. For example, formulating KPIs in the form of “attract more orders from regular customers” is not worth it if it is difficult for us to separate new orders from repeat ones.

The implementation of KPI is not an easy task, it requires the participation of both top management and department heads and employees, that is, in fact, the entire organization.

Using the method for the personnel management service

The main goal of the HR service is the effective use of the employees of the organization. It includes activities for planning, recruitment, selection, adaptation, training, personnel assessment, as well as remuneration, compensation, benefits and labor safety.

When building KPIs, you can focus on the following indicators:

staff turnover - the ratio of employees who left the organization to the total number of employees;

labor and performance discipline (the number of violations, penalties, the number of dismissed as a result of this);

attestation (the number of those subject to attestation who have passed it);

the number of those trained in the reporting period;

the state and structure of the personnel reserve, the number of reservists;

labor productivity;

staffing (speed of filling vacancies, the percentage of those who did not pass the probationary period, the cost of hiring one employee).

Separately, I want to say about personnel records. This is a large area at the intersection of HR and accounting, and here you can focus on the success of labor inspection inspections, as well as the frequency of complaints from employees about the preparation of personnel documentation.