Why choose OKRs for your HR team
OKRs (Objectives and Key Results) are a collaborative management methodology that helps HR teams set and achieve goals. They’re helpful to all business units and individuals because they drive alignment, enhance focus, and inherently promote transparency.
Learn more about what OKRs are and how to use them.
Regardless of how your organization labels it — HR, people & talent, people operations — OKRs elevate the impact of your teams. As the organization’s source for managing and nourishing people and talent, success in the HR profession means improvements in employee satisfaction, performance, and engagement. The HR team has two main challenges:
- Demonstrating the impact of its efforts
- Building a culture that scales
How OKRs solve HR team challenges
It’s the HR professional’s job to ensure consistent improvements in the employee experience, as well as recruit talent that contributes and fits in with that experience. Measuring something as subjective as satisfaction is possible with OKRs and it’s how you can show progress on the impact of your overall HR efforts.
While HR can be seen as an “overhead” business expense rather than a catalyst for driving initiatives, HR professionals can use data from OKRs to better inform decision-making.
OKRs give leadership across the organization a clear look into how HR-specific KRs contribute to company objectives, helping HR teams get buy-in from those who contribute resources. In addition, OKRs help quantify soft skill measurements like engagement, wellness, collaboration, teamwork, and feedback.
By using metrics to inform your HR initiatives, you can measure the work and position decision making around data versus intuition. OKRs are the time-bound framework for your HR teams to consistently test, improve, and even transform your organization.
Setting OKRs for the HR team
Choosing an OKR focus area for HR requires knowing what your organization needs most:
- Bringing up lagging areas inhibiting growth
- Maintaining momentum and ensuring balance
- Going above and beyond in an area for a competitive advantage
The needs of your organization are rarely one-dimensional, but OKRs help HR teams uncover growth opportunities through data collection.
For example, employee experience surveys generate a baseline for understanding which vulnerabilities or opportunities exist.
If employees are happy with compensation and benefits but feel your workplace doesn’t empower development, your OKR focus is clear — creating KRs targeting satisfaction metrics (outcome) or the initiatives that improve satisfaction (output) are the next logical step.
Seeing how the data informed by key results changes from quarter to quarter will help your HR teams see which initiatives are working, where improvement is needed, and how the OKRs may need to adapt.
HR OKR focus areas
There are several areas of focus for HR OKRs:
- Education and training
- Performance management
Check out all our HR OKR examples below.
HR OKR examples
HR OKRs for compensation
- Objective: Significantly improve our benefit program while staying within budget
- Key result 1: Evaluate benefit programs of 5 similar local companies, select and finalize contract with new vendor with best fit
- Key result 2: Ensure >85% participation in benefit program
- Key result 3: Maintain benefits budget below $500 per team member per year
- Objective: Invest in our employees
- Key result 1: Decrease top performer attrition from 18% to 10%
- Key result 2: Increase salary competitiveness ratio from 1.1 to 1.5
- Key result 3: Improve employee satisfaction score for compensation from 60 to 75%
HR OKRs for performance
- Objective: Drastically increase team performance
- Key result 1: Increase the OKR completion rate for team members from 60% to 70%
- Key result 2: Increase the participation on the weekly check-ins from 75% to 90%
- Key result 3: Increase the product teams velocity from 112 to 150
- Objective: Deliver a revised and improved PTO Policy
- Key result 1: Hire an assistant to service employee administrative needs
- Key result 2: Evaluate 3 solutions for leave tracking and select the best one for the team
- Key result 3: Achieve 90% satisfaction rate of the new system
HR OKRs for education and training
- Objective: Implement personal development program for all team members
- Key result 1: Create the career roadmap for all 65 current positions and get approval from team leads
- Key result 2: Create a program for 100% of team members of the PDP
- Key result 3: Achieve 80% completion rate for the PDPs
- Key result 4: Select the tool/system for tracking PDPs and achieve 80% satisfaction rate
- Objective: Achieve OKR adoption in all teams
- Key result 1: 100% of employees scheduled for OKRs training workshops.
- Key result 2: Achieve an 80% approval rating on employee survey on OKR effectiveness
- Key result 3: Achieve at least 60% completion rate for the first OKRs cycle
- Objective: Create a training program for each department
- Key result 1: Create and get approval from team leads for the training program for 7 departments
- Key result 2: Achieve 80% attendance for the training programs
- Key result 3: Achieve 9.0 eNPS score for the training events
HR OKRs for culture
- Objective: Increase team engagement and motivation
- Key result 1: Increase the team member engagement score from 75% to 90%
- Key result 2: Reduce the number of complaints per month from 4 to 1
- Key result 3: 100% of team members receive feedback this quarter
- Objective: Improve employee wellness
- Key result 1: Interview 15 team members on how to improve work-life balance in the team
- Key result 2: Review food offerings with a professional, roll out 100% health snacks
- Key result 3: Decrease the sick day leaves per month per employee from 2 to 1
- Key result 4: Ensure that a minimum 70% of employees get annual flu vaccine through on-site facilitation
- Objective: Hold an amazing 10th anniversary event
- Key result 1: Achieve >85% attendance of the event
- Key result 2: Achieve >8.5 NPS of the event
- Key result 3: Involve at least 1 representative of each department for team building & organizational preparation activities for the event
HR OKRs for retention
- Objective: Significantly improve employee retention
- Key result 1: Reduce attrition rate to <3%
- Key result 2: Improve employee employee satisfaction score to 9 or above
- Key result 3: 99% of employees complete an Engagement survey to determine methods to improve transparency and alignment
- Key result 4: Complete report comparing current compensation & benefits to market rates
- Objective: Refine and promote company values
- Key result 1: Interview 25 members of the team (15% of total) on our culture and values
- Key result 2: Update values, description, and examples based on the interview
- Key result 3: Conduct 5 talks during the weekly team meetings on the examples of how we use our values
HR OKRs for hiring/recruiting
- Objective: Create an effective recruiting machine
- Key result 1: Reduce the average lead time for the vacancy from 45 to 30 days
- Key result 2: Increase the % off offers accepted from 80% to 90%
- Key result 3: Reduce the cost of hire from $1,250 to <$1,000
- Key result 4: Increase the % of closed positions from internal recommendations from 10% to 25%
- Key result 5: 15 new hires attributed to current employee referrals
- Objective: Improve the onboarding process
- Key result 1: Conduct 10 interviews to identify issues with the onboarding process
- Key result 2: Increase pass rate for new employees from 85% to 95%
- Key result 3: Achieve 90% satisfaction rate of the onboarding process
- Objective: Hire and onboard amazing new team members
- Key result 1: Hire 3 new team members (2 devs, 1 marketer)
- Key result 2: Interview 10 team members about their hiring and onboarding experience and create an improvement plan
- Key result 3: Create an onboarding program & presentation for each of the 5 new positions
HR OKRs for performance management
- Objective: Transition to ongoing performance management
- Key result 1: Implement a new 2-way closed-loop feedback process for 100% of employees
- Key result 2: 100% of current employees migrated to quarterly performance reviews
- Key result 3: Receive 90% positive employee engagement score for new process
- Key result 4: Ensure that >80% of managers implement a weekly check in process utilizing Quantive
- Objective: Make all of our managers more effective and successful
- Key result 1: Implement management training with >80% participation
- Key result 2: Ensure every manager is doing regular 1-on-1 meetings with 2-way feedback
- Key result 3: Do monthly anonymous employee surveys to get feedback on managerial effectiveness
- Key result 4: Implement 360 review process for all managers, delivering report to Executive team
How Quantive simplifies OKRs for HR teams
Quantive is your bridge between strategy and execution. Founded on the objectives and key results (OKR) methodology, our Strategy Execution Platform is where businesses plan successful strategy, focus and align teams to it, and stay on the leading edge of progress.
As your company looks to achieve the best possible results, you need a modern approach to run your business and change your business. The Modern Operating Model brings strategy, teams, and data together to help make decisions faster, optimize operations, and drive better business outcomes.
Whether you’re a large enterprise facing competitive disruption or a small business leading the innovative charge, Quantive helps get you where you want to go.
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