What is a KPI?

A KPI (Key Performance Indicator) is a quantifiable measure used to evaluate how effectively an individual, team or organisation is achieving stated business objectives.

Last updated: June 2026

Definition

A KPI is a measurable value. It quantifies progress toward an intended outcome and answers the question "are we moving in the right direction?". Good KPIs are specific, measurable, time-bound and tied to a business outcome.

Types of KPIs

  • Leading KPIs — predict future performance (e.g., qualified leads, NPS).
  • Lagging KPIs — measure past performance (e.g., revenue, attrition).
  • Quantitative KPIs — pure numbers (sales, time-to-hire, CSAT).
  • Qualitative KPIs — directional measures (engagement, culture index).

HR KPI examples

  • Time to hire (days from req open to offer accepted).
  • Cost per hire.
  • Annual attrition rate (voluntary + involuntary).
  • Employee Net Promoter Score (eNPS).
  • Training hours per employee.
  • Internal mobility rate.

KPI vs KRA vs OKR

KRA = the area of responsibility (e.g., "hiring quality"). KPI = the metric within that area (e.g., 90-day retention rate). OKR = an objective with measurable key results, often more ambitious and time-boxed.

KPIs in Texlaculture

Set KPIs at org, team and individual levels, link them to KRAs and OKRs, and track real-time progress with weighted dashboards directly inside the performance module.


Related
KRA (Key Result Area)OKR vs KPIPerformance AppraisalPerformance Management Software
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Texlaculture performance management tracks KPIs, KRAs and OKRs alongside reviews and feedback.

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