No organization can succeed without a clear understanding of its goals, whether that may be for its employees, teams, or the company as a whole. That’s why OKRs are so crucial to HR departments, they provide a benchmark by which one can measure efficiency and success. So let’s go into more detail about what exactly OKRs are, the essential targets you should aim for, and how best to achieve them.
OKR stands for objective and key results and refers to any number of metrics that are used to ascertain and judge the performance of a corporate entity. It is a collaborative methodology that relies on the creation of clear goals and effective communication with the rest of the team subject to them.
The formula is simple; An objective is set and key results are created to measure success or failure in reaching said objective. The key results therefore need to be simple to understand, concise, and achievable yet ambitious. Objectives may be set for a particular deadline however key results evolve as work is carried out to achieve the company’s target.
These two terms are often either confused or assumed to be the same. KPI stands for key performance indicator, and are primarily focused on strategic objectives, thus they are closely associated with the KR aspect of OKRs.
For example, your objective could be that you want to increase your company’s brand awareness by 50% in a specific market. Your KPI, and therefore your key result, would refer to a specific target that will help you achieve this goal, like expanding your social media followership by 50% in the market you’re targeting.
OKRs are essential to any company with an HR department as they ensure that you can properly track its efficiency and success, allowing you to plan out a strategic vision for your goals. Without OKRs you would be working blindly without any clear idea of what you and your colleagues can achieve through your work.
By using OKRs you can set goals for your team and company that are achievable and yet challenging enough to provide real actionable benefits. You can also better identify inefficiencies, save on costs, and track the progress of your projects to a much greater degree of detail.
As OKRs need to be set according to the specific needs of each team many could be considered to be key to HR teams. However, some of the most commonly encountered include the following;
The company needs to reduce its budget across the board due to an economic downturn. As a result, the HR department would set up key results targets like the following;
Reduce payroll budget from 15% to 10%
Cut the number of HR software used from eight to four
Conduct one internal audit of all HR processes
The company has decided that it wants to expand the number of its employees in the finance department. As the leader of the HR team, it's your job to achieve this via key results like;
Increasing the number of finance specialists from three to five
Increasing the number of career sites used to a maximum of three
Create and post job vacancy notices and post them on all social media channels
Recently, the head of the HR department noticed that the rate of employee churn at your company is unacceptably high. Key result targets you could use to combat this issue include;
Improve overall employee satisfaction by 20%
Create surveys to understand employee concerns and ensure all staff members use them
Increase internal promotion rates by 50%
The best way to manage the OKRs you set for your HR team is by using dedicated OKR software like PeopleForce. This way you can ensure everyone affected by your OKS can access them, share their results and queries, and manage their goals effectively. This is crucial in creating a transparent workplace culture that supports the optimal achievement of your OKR targets.
If you want to learn more about OKRs, how you can deploy them successfully, or how our dedicated OKR tool will help you achieve your key results, drop us a message via our contact form. You can also book a free demo with us today if you want to learn more.