OKRs verse KPIs

by Jun 29, 2023Human Resources, View All

OKRs and KPIs, what are they and why are they necessary for business? It basically comes down to the age old saying, ‘work smarter, not harder’, with little adjustments leading to big rewards. If you were to correctly implement these tools within your business, they would save you time and money, whilst increasing overall workplace performance, satisfaction and culture.   


Most of you have heard of KPIs (Key Performance Indicators) and know it as a common sales term. KPIs are usually implemented as a tool to see employees manage their own performance via targets, setting clear expectations of an employee’s role and measurable goals. Very few employers understand the versatility of this tool and how it can be applied to almost any area of a business. For example, KPIs can be used to measure employee productivity and sales, quality of work in relation to customer satisfaction and work-related errors, attendance, and financial performance. The greatest benefit of KPIs for employers, is the ability to improve employee work efforts in response to measured feedback, as the results can be used constructively and effectively to scaffold achievement. 


OKRs (Objectives ad Key Results) are not as commonly known as KPIs, with the main point of difference being the approach of measured individual and team goals. They provide greater structure, with objectives given to multiple individuals within a team as they work towards a joint goal. This process is incredibly flexible, with objectives and deadlines evolving in response to team efforts and feedback, reducing workplace stress and increasing creativity and productivity. The number one benefit of OKRs is the potential to develop and improve employee engagement and purpose, as they recognise their contributions to the overall goals and achievements of the business.  

At AHR we believe that there is a place for both OKRs and KPIs in every workplace. We feel it essential that KPIs be included within Position Descriptions upon the initial hiring of employees. Increasing the efficiency of the Performance Management Process via established targets that measure employee performance and assist in the development of Performance Management Plans. Whereas, we see OKRs as a useful tool for increasing employee performance via motivation and engagement, as they promote inspiring, innovative and flexible objectives that encourage teamwork and big-picture goals.  

If you are looking to simplify your performance management processes, then we urge you to make modest changes. The AHR Team acknowledge that small changes add up and can very quickly become timely efforts. This is where we can help. We are only a phone call away and with a few simple adjustments and some professional guidance, you will find the Performance Management Process much easier to measure and to respond to. Call us today on 1800 577 515 and we can talk you through it, show you how to do it, or implement these changes on your behalf.  We acknowledge that you are busy and need to implement efficient processes, it is time that you acknowledge this too.  

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