Human Resource OKR Examples
What are HR OKRs?
HR OKRs (Objectives and Key Results) are a strategic framework used by Human Resources departments to align their goals with the overall organizational objectives. They define the desired outcomes (objectives) and measurable key results that indicate progress toward those objectives. HR OKRs help HR teams focus on critical initiatives such as employee engagement, talent acquisition, performance management, and diversity and inclusion, enabling them to track their progress and drive impactful results within the organization. By implementing HR OKRs, companies can enhance their HR practices, foster employee development, and achieve long-term success.
Human Resource departments are the backbone of any organization. They fulfill various functions like implementing effective policies and procedures, building the company culture, recruitment, performance management, compensation & benefits, law compliance, and training.
These functions are generic for any organization, irrespective of the industry they belong to.
As such we bring you some sample OKRs for the HR department that can be used as-is or may need company-specific customization.
How can the Human Resource OKRs increase the HR team performance?
HR OKRs are measurable goals that help the HR team quantify their results within a period. They help the HR team in establishing objectives and tying them with organizational goals by monitoring key results. In turn, they help in increasing the HR team’s performance significantly. Here’s how:
Setting realistic HR goals
OKRs help in creating a systematic plan and provide clarity as to what HR will be achieved in a certain period. These factors aid in setting realistic and achievable goals. The HR department can focus more on priorities that can help reach there faster.
Measuring the progress in HR-related areas
When HR set achievable goals, they will be able to track how their priorities improve the decision-making in the areas of talent acquisition, performance management, compensation and benefits, learning and development, and other areas.
Aligning Performance with organizational growth
By taking data-driven decisions, HR can drive crucial initiatives that effectively improve employee performance. OKRs give a clear look into which employee attributes contribute to organizational success. Ultimately, they will be able to align employee performance with organizational growth.
Building a winning culture
When OKRs are implemented effectively in the HR team, they help uncover issues that inhibit the growth of the employees. This can be done by conducting surveys quarterly, quantifying employee engagement, and using metrics to track HR initiatives.
Increasing employee satisfaction
When employee engagement, wellness programs, teamwork, etc., are quantified, HR can take informed decisions by implementing various initiatives that improve the organization from the inside. OKRs identify vulnerabilities and opportunities.
For example, if the employees are happy with their work but feel like there are no developmental opportunities, the HR can create KRs targeting initiatives that improve satisfaction as the next step.
How to set HR OKRs
Step 1: Break down organizational goals to set HR OKRs.
Step 2: Outline what the HR team wants to achieve.
Step 3: Choose how you are going to track them.
Step 4: Set key results and tie HR goals to organizational goals.
Step 5: Design initiatives that achieve the HR key results.
Step 6: Redesign OKRs if failed to achieve them
Step 1: Break down organizational goals to set HR OKRs.
Understand the organizational goals and break them down into actionable HR goals. These periodical goals will be the HR OKRs that not only fulfill individual goals but also organizational objectives. Articulate these goals to all the HR sub-departments to effectively cross-function.
Step 2: Outline how and what the HR team wants to achieve.
After setting the HR objectives for the quarter or year, the HR team must decide if they want to deal with things that inhibit growth, maintain balance, or adopt initiatives that help gain a competitive advantage. When the team has decided what it wants to achieve, it must create a detailed roadmap to fulfill them.
Step 3: Choose how you are going to track them.
It is critical to have the right tools when tracking OKRs. If not tracked properly, the HR team won’t know if they are falling behind or progressing. When the team has an idea of where they are, they will be able to take appropriate steps to meet the set periodical goals.
One of the best ways to track OKRs is to use an appropriate system that gives you detailed analytics and keeps track of individual goals as well as organizational objectives.
Step 4: Set key results and tie HR goals to the organizational goals.
Key Results are outcomes that need to be achieved to accomplish the set objective. They require metrics and target values. Weigh each KRs using percentages. When all the Key Results are achieved, the main objective would naturally be accomplished.
For example, if the objective is to increase developmental opportunities in the organization, one of the Key Results can be to increase internal promotions where required and provide more career opportunities.
Step 5: Design initiatives that achieve the HR key results.
After writing down the Key Results, the HR team should develop initiatives that achieve them within a timeframe. Prioritize the daily efforts of the employees to achieve the set KRs.
Step 6: Redesign OKRs if failed to achieve them
When the team fails to achieve its OKRs, it’s not because of the team’s performance but because the OKRs weren’t set properly. If OKRs are not set realistically, the team may fail to achieve them. Redesign them clearly and meaningfully next time. They should be such that everyone should believe they can achieve them while also challenging themselves.
HR focus OKR roles:
- Performance Management
- Compensation and Benefits
- HR Compliance
- Learning and Development
- Talent Acquisition
- Talent Management
- Workplace Safety
- Organizational Culture
- Employee Retention
- Employee Engagement
- Employee Wellness
- DEI (Diversity, Equity, and Inclusion)
Sample HR OKRs For Compensation And Benefits:
A major role of the HR department is to balance the compensation and benefits of employees with both the organizational budget and employee expectations. OKRs for this function usually focus on improving employee satisfaction, streamlining payroll systems, etc.
The participants for this OKR can be HR Head, HR Manager, and Payroll Manager.
Objective – Align The Compensation System With Industry Standards |
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| Key Result 1: Have a clear salary structure for a minimum of 75% of the employees. |
| Key Result 2: Make a comparative study of 3 additional industrial salary reports. |
| Key Result 3: Make appraisals into quarterly cycles from yearly cycles. |
Objective – Improve Benefits Gratification |
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| Key Result 1: 60% improvement in the ‘Benefits’ category in the survey for Employee Satisfaction. |
| Key Result 2: Compare the current employee benefits with industry standards and recommend better ones. |
Sample OKRs For Performance Improvement:
Though every individual employee comes with his/her strengths and weaknesses, the organization also plays a great role in improving the performance of employees. HR department ensures this by improving processes, creating training programs for managers, and identifying areas for improvement.
The participants for this OKR could be HR Manager and HR Assistant.
Objective – Improve Performance Of Newly Recruited Employees |
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| Key Result 1: Decrease the onboarding process time from 10 days to 1 week. |
| Key Result 2: Reduce recruits’ performance evaluation period to 30 days. |
| Key Result 3: Increase trainer-to-new recruit ratio to 1:3 |
Objective – Make Managers More Effective And Successful |
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| Key Result 1: Ensure that managers participate in management training programs twice a year. |
| Key Result 2: Ensure every manager is participating in regular one-on-one meetings with 2-way feedback. |
| Key Result 3: Perform anonymous employee surveys to gather feedback on managerial effectiveness every quarter. |
Sample OKRs For Culture Change:
Progress in an organization is possible only when it has a healthy culture. To promote good culture, the HR department needs to pump in efforts to ensure that the employees have a good work-life balance and also have a satisfactory engagement with the organization.
The participants for this OKR could be HR Culture Manager and HR Assistant.
Objective – Improve Work-Life Balance For Associates. |
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| Key Result 1: Ensure 75% of employees use at least 50% leave at the end of the year. |
| Key Result 2: Increase participation of employees in company activities by 50%. |
| Key Result 3: Initiate 1 Corporate social responsibility activity per quarter. |
Objective – Improve Employee Engagement |
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| Key Result 1: Ensure all managers are taking continuous two-way feedback through your performance management system. |
| Key Result 2: Perform monthly surveys to check employee satisfaction. |
| Key Result 3: Ensure clarity of work with goals to boost engagement |
Sample OKR For Employee Retention:
Retaining existing employees is more cost-effective than hiring new ones. The HR department can ensure that employees are retained for a longer period by increasing internal promotions, having satisfactory compensations, etc.
The participants for this OKR could be HR Head and HR Manager.
Objective – Increase Average Employee Tenure |
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| Key Result 1: Ensure a 15% increase in positive feedback during employee surveys. |
| Key Result 2: Increase internal promotion rate by 20%. |
| Key Result 3: Increase average employee tenure from 18 months to 24 months. |
Sample OKRs For Learning And Development:
Ongoing learning and development programs are critical for the growth of an organization. Training programs should be promoted by managers and should be part of every employee’s growth cycle.
The participants for this OKR could be HR Head, Learning and Development Manager, and Learning and Development, Coordinator.
Objective – Design And Launch the Internal Employee Academy |
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| Key Result 1: Engage in talks with at least 3 other HR Directors to understand their strategies for deploying internal education. |
| Key Result 2: Define 10 training modules and design content for each. |
Objective – Improve Awareness About Training Needs And Training Programs Among Senior Managers. |
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| Key Result 1: Organise 3 training sessions per quarter for the management team. |
| Key Result 2: Increase response to feedback about internal training activities by 15%. |
Sample OKRs For Recruitment:
Recruitment is a challenging HR activity. Hiring top talents among freshers and experienced individuals is an important task, which gives any project a good head start. Various OKRs around hiring can help improve the quality of new hires, as well as help source better talent through the employee referral program.
The participants for this OKR can be HR Recruitment Manager and Recruitment Coordinator.
Objective – Grow Our Team With A-Players |
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| Key Result 1: Increase referral fees for the Employee referral program by 10%. |
| Key Result 2: Hire 25 new employees this quarter for the 5 requesting departments. |
| Key Result 3: Improve positive feedback on the conducted interviews by 25%. |
| Key Result 4: Achieve a ratio of 4:1 between interviewed and hired candidates. |
Objective – Shorten The Duration Of the Recruitment Process |
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| Key Result 1: Reduce the duration of requirement gathering and JD creation to 7 days |
| Key Result 2: Increase the database of potential candidates by 25%. |
| Key Result 3: Decrease interview dates allotment cycle duration by 10%. |
Objective – Hire Top Talent In Freshers |
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| Key Result 1: Increase company visibility in top colleges by 75% |
| Key Result 2: Achieve a 10% increase in job offer acceptance rate. |
| Key Result 3: Reduce contractors to 10% of the workforce. |
Sample OKRs For Performance Management:
Performance management is an essential part of an organization as it fosters growth. Having a good performance management system is very critical for any organization.
The participants for this OKR can be Manager- Performance Management and Coordinator – Performance Management.
Objective – Implement A New Performance Management System |
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| Key Result 1: Analyse and present at least 3 performance management models that can be considered. |
| Key Result 2: Decide and communicate the chosen performance management system. |
| Key Result 3: Ensure 100% participation in implementation training of the new system. |
| Key Result 4: Ensure 70% positive feedback after 3 months. |
Objective – Transition To Ongoing Performance Management |
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| Key Result 1: Implement the ongoing 2-way closed-loop feedback with light check-ins. |
| Key Result 2: Institute quarterly performance reviews. |
| Key Result 3: Implement a new annual review process to serve as a summary of the ongoing process. |
How To Score OKRs?
Not every OKR can be evaluated similarly. The difficulty of each OKR needs to be taken into consideration while evaluating it. The general practice is to evaluate each KR on a scale of 0-1 with 0 being the lowest and 1 being the highest. Since OKRs are meant to be ambitious, a grading of 0.6-0.7 is considered ideal. Grade each KR and add the total. If the total is less than 0.4, it is a case of concern. It is time to re-evaluate the benefits of having the OKR in the first place.
OKRs are one of the best-known methods of improving performance in an organization. Check out more information on OKRs here.
Conclusion
Reaching New Levels
Ultimately, HR OKRs are the perfect way to channel your team’s commitment and efforts to reach new heights. They facilitate data-driven decisions at an organizational level to achieve new levels of success. Whether a startup or an innovative company, when HRs implement OKRs effectively the individual goals are perfectly aligned with overall organizational growth.
FAQs
1. Why should HR departments use OKRs?
HR departments use OKRs to focus their efforts, measure progress, and drive alignment with the organization’s goals. OKRs provide a clear direction and help HR teams prioritize their initiatives and allocate resources effectively.
2. How are HR OKRs different from individual employee goals?
HR OKRs are broader organizational objectives set by the HR department to drive employee engagement, talent management, and HR process improvements. Individual employee goals, on the other hand, are specific targets set by employees to contribute to the HR department’s objectives.
3. What are some examples of HR OKRs?
Examples of HR OKRs include improving employee retention, increasing employee satisfaction scores, developing leadership pipelines, enhancing diversity and inclusion initiatives, optimizing recruitment processes, implementing employee training programs, and fostering a culture of continuous learning.
4. How do you set effective HR OKRs?
Effective HR OKRs should be aligned with the organization’s strategic goals, specific and measurable, time-bound, and achievable. They should be ambitious yet realistic, and provide a clear focus for HR initiatives and activities.
5. How often should HR OKRs be reviewed?
HR OKRs should be reviewed regularly, typically on a quarterly basis. Regular reviews allow HR teams to track progress, make adjustments, and ensure alignment with the organization’s evolving needs.
6. How do HR OKRs support data-driven decision-making?
HR OKRs promote data-driven decision-making by establishing measurable key results. By tracking relevant metrics and progress towards those results, HR departments can gather valuable insights and make informed decisions to drive organizational success.
