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The Human Resources Institute of New Zealand

Human Resources Institute of New Zealand (HRINZ) is the professional body for those involved in Human Resource Management and the development of people.

HRINZ represents the interests of 3,000+ individual members who make up around 45% of the known New Zealand HR market. Read More

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Key Performance Indicators (KPI's)

No matter what organisation or industry you work in you will have heard the term KPI's.
Keith Mackay and Gene Johnson *definition of a KPI is a measure of whether an employee's, team's or business unit's agreed performance goals or results in targets have been achieved or met.

Therefore, most organisations have set key performance indicators for any job based on the skills and competencies required to be demonstrated for that job. The KPI should be incorporated and agreed within the performance planning process, which outlines the areas of accountability, performance objectives, performance standards, performance targets that are required to be met and what KPI's will be used to measure their achievement.

Example of a performance statement:

Accountability: Customer care & satisfaction
Objective: Increase the percentage of customer satisfaction
Standards: 70% Poor, 70-79% Satisfactory, 70-89%- Good, 90+%- Excellent
Target: Achieve an average of 80% or better over the next quarter with our customers
KPI: Response to our annual customer satisfaction report

HR must ensure that accurate information and measurement of this data is collected and analysed. The appropriate competencies and standards are used as performance indicators. Feedback on the employee performance and achievement of these goals, is very important and must be given to the employee.

*The definition used above was from taken Keith Macky and Gene Johnson, Managing the Human Resources in New Zealand, 2nd Edition.

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Disclaimer: This information has been written for and submitted to HRINZ for publication and has been published in good faith for the general information of HRINZ Members of the Institute. HRINZ accepts no legal responsibility for the contents of the Knowledge Base and appropriate professional advice and assistance should be sought in particular cases.

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