7 of April, 2025

If an organization has poorly defined KPIs, these can directly affect its revenue, strategies, costs, or investments. We need to consider that these performance metrics have become a critical aspect for business success. Here, you will learn how to implement KPIs in your company properly and aptly.

What are KPIs for?

Basically, a KPI is a value that can be measured and shows the effectiveness of an action focused on reaching a specific objective. The key performance indicators can be implemented in different areas of a company. They are used to calculate the level of progress regarding a set goal.

On the other hand, high-level metrics can focus on the overall performance of the company. Lower-level ones could be directed to specific areas or departments, for example, marketing, customer service, accounting, among others.

How to implement KPIs?

As we mentioned earlier, they are essential for any company; therefore, it is important that we know how to implement KPIs. In summary, the key is in control; control always requires measurement. In many cases, success is a lover of speed, not rush.

With much more agile, controlled, and faster processes, your customer will have much greater satisfaction. Also, your operation costs will be reduced by optimizing each of your current resources. However, we should mention that we can constantly find metrics and indicators disguised as KPIs.

It’s time to mention some steps for proper and efficient design, development, and implementation:

Direction and control.
Deployment.
Description and details of the operation in 6 dimensions: Customers, process, technology, human resources, and financial resources.
Definition and collection.
Data processing.
Data analysis.
Design and development of each of the indicators.
Verification and validation.
Implementation of KPIs.

Meeting with the executives and asking them certain questions is the last stage that should be considered for structuring a correct organizational structure. These questions are: What is expected to be achieved? And what do they want to achieve?

Based on these questions and the initial analysis, we will get a set of data that will allow us to use these questions as guidelines. This way, we will determine what is expected to be measured. Thus, we can now know how to implement human resources KPIs as often as we need.

The importance of knowing how to implement KPIs to achieve success

The main importance lies in that you can have a metric system that objectively tells you if each of your actions is well-directed towards the success of organizational goals.

No matter if you decide to define the key performance indicators monthly, quarterly or even annually. If you want to achieve success and a progressive evolution in your company, there are certain things you need to do. These tasks are nothing more than aligning the business strategy starting from top management and ending with all employees, regardless of their position in the company.

What are HR KPIs?

A KPI, or also called, performance indicator, is a unit of metric that is in charge of measuring the performance of a specific activity. The aim is to use it as a reference when analyzing processes or activities based on the goals to be achieved. In other words, HR KPIs allow us to measure the success of the actions carried out, find possible failures, and help us make good decisions.

Currently, we can find a very extensive list of indicators for human resources. Below, we mention some of the most outstanding ones in any company:

Labor turnover rate

It is essential to know the company’s stability. It calculates the time that workers remain or want to remain working in it. Ideally, labor turnover should be below 5%.

Effectiveness of different selection processes

Thanks to knowing how to implement KPIs like this, we can know the effectiveness and efficiency of advertisements, for example, to know if they really are targeting the correct audience. In this way, we will provide attraction and retention of the ideal candidates for the job.

Cost and time of hiring

This indicator is especially necessary when companies are immersed in selection processes. Basically, it will allow you to know the hiring cost of each new employee.

Average time to reach goals

If we work for a commercial network and we need to know how long it takes to achieve the objectives, this is exactly the indicator we should implement. Through this KPI, the human resources team will know the efficacy of the sales force.

Average time to fill vacancies

This indicator is designed to measure the difficulties that the company faces when looking for new talents.

What are the most important HR KPIs?

Talent retention

Talent retention allows us to know the job stability of a company. In other words, it helps us to know the average willingness of an employee to stay in the company. This KPI is linked to other factors such as the work environment or the remuneration.

In addition to what it costs the company to lose a worker, talent leakage requires time to recruit a new person and train them. In theory, a high turnover rate implies huge costs for the employing organization.

Time in position

Many of the resignations by employees are related to the time a worker occupies the same position. If the times are too long, many employees tend to look for new opportunities and leave the company.

The average time it takes for an employee to be promoted can be calculated by adding the number of months each worker has been with the same position and then dividing the result by the total number of employees in the company.

Training and capacity building

Training for workers directly affects the development of the company’s professional activity. This HR KPI allows us to improve the productivity of each employee individually. Through subsidized training for organizations, the company’s employer branding can be improved.

It also gives motivation to the workers, increases employees’ level of satisfaction with the company, and the time it takes for a worker to perform an activity.

KPIs will only be effective when they provoke the right actions to achieve the company’s set goals. Since they are also a form of communication, they need to be concise, clear, and relevant for their correct assimilation.

As a business strategy, it should be a process full of feedback for each department of the company. If you dedicate part of your time to looking for the right data, you will greatly understand what kind of process needs to be measured. For this and much more, it is necessary to learn how to implement KPIs in the company.

How does Sesame HR help with managing HR KPIs?

Sesame HR is an advanced tool that enables companies to effectively control HR KPIs (Key Performance Indicators), facilitating strategic decision-making based on data. With specific functionalities to gather, analyze, and visualize information in real-time, Sesame HR assists HR teams in optimizing processes, measuring results, and aligning operations with organizational objectives. Below are the details of how Sesame HR can aid you in managing HR KPIs efficiently:

Automated Data Collection

Sesame HR consolidates key human resources data, such as time tracking, turnover, absenteeism, and performance evaluations, in one place. Its automation capabilities reduce common data collection errors, ensuring accurate and reliable information.

Real-time tracking of KPIs

It provides interactive dashboards that display key indicators in real-time, allowing for the monitoring of each metric’s evolution. Setup alerts to identify significant deviations in KPIs and act promptly.

Management of HR specific KPIs

Personnel turnover: analyzes turnover and talent retention rates, identifying patterns and areas that require attention.
Labor absenteeism: records and analyzes absences to identify potential causes and take corrective actions.
Satisfaction and commitment: integrates work climate and engagement surveys to measure the perception and motivation of employees.
Productivity: relates the time worked with the results obtained, evaluating team efficiency.
Training costs: controls investment in training and measures its impact on improving competences and performance.

Customization of indicators

Allows the creation of specific KPIs according to each organization’s objectives and priorities. It also analyzes indicators by departments, locations, or professional profiles to obtain detailed insights.

Detailed report generation

Generates visual and ready-to-present reports with clear graphs, tables, and statistics. Evaluates the evolution of KPIs over time to measure the impact of implemented strategies.

Facilitates strategic decision making

Provides data-based analyses that allow for informed decisions to improve processes and optimize resources. The KPIs managed with Sesame HR help set realistic and measurable objectives, aligned with organizational goals.

Integration with other functionalities

Performance evaluations: connects the results of the evaluations with KPIs such as productivity, commitment, or objective fulfillment.
Time tracking and shifts: ties work time metrics with efficiency and performance.
Training management: associates the impact of training programs with the improvement in performance KPIs.

Promotes transparency and monitoring

Team leaders can consult the relevant KPIs for their areas, improving supervision and management. Also monitors indicators regularly to ensure the achievement of set goals.

Regulatory compliance and audits

Sesame HR ensures that all KPI-related data is securely stored and fully compliant with current regulations. It also simplifies the process of presenting detailed reports during inspections or internal audits.

With Sesame HR, managing Human Resources KPIs becomes a simpler, faster, and more strategic process. Its ability to collect, analyze, and visualize data in real time allows companies to identify areas for improvement, make informed decisions, and measure the impact of their actions.

It’s the ideal tool to turn HR data into a driver of business growth.

See it for yourself—sign up now and get a 14-day free trial.

Customer-oriented, both internally and externally, specializing in the definition and implementation of HR policies, as well as talent management, recruitment, and retention. Strong leadership, communication, negotiation, organization, and team coordination skills. Over 12 years of experience in Human Resources.

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iriserrador

HR Content Specialist

Step by step to implement KPIs in the company