How to Use OKRs and KPIs to Improve HR and Business Performance
If your company is growing or facing new challenges, knowing how to set the right goals and track them matters more than ever.
Many business owners hear terms like “OKRs” and “KPIs” but are unsure what they actually mean or how to use them in daily operations.
In this guide, we explain what OKRs and KPIs are, how they are different, and how they can work together to help your business set goals, measure progress, and improve results. You do not need to be an expert in HR to get started. You just need a clear system that helps your team focus on what matters most.
What Are OKRs and How Do They Work?
OKR stands for Objectives and Key Results. It is a way to set clear, action-oriented goals and track whether your team is moving in the right direction.
The Objective is what you want to achieve
The Key Results are how you will measure success
Each objective should be meaningful and ambitious. Key results are the specific, measurable steps that show progress.
For example:
Objective: Improve customer service response times
Key Results:
Respond to all tickets within 2 hours
Increase customer satisfaction scores by 10 percent
Reduce complaint resolution time to under 24 hours
OKRs can be set for individuals, teams, or departments. You can use them for leadership goals (top-down), team goals (bottom-up), learning goals, or personal growth.
Real OKR Examples
A top-down OKR might be set by leadership to increase market share. The marketing team could then focus on raising brand awareness or launching new campaigns.
A bottom-up OKR might come from the front-line team noticing a pattern in customer requests. They could suggest a new system for tracking those requests to improve service.
A learning OKR could involve training all employees on a new payroll system, with clear steps to test knowledge and roll out the tool across departments.
When used consistently, OKRs help your organization stay focused on its bigger goals while tracking small, manageable steps.
What Are KPIs and How Are They Different
KPI stands for Key Performance Indicator. Unlike OKRs, KPIs are not goal-setting tools — they are metrics. They measure how well your business or team is performing in a specific area over time.
KPIs are usually tied to long-term performance goals, such as:
Revenue per employee
Average response time
Customer retention rate
Employee turnover rate
Number of hires per quarter
KPIs work best when they are specific and easy to track. They are often included in dashboards or reports to show trends, patterns, and outcomes.
Types of KPIs
There are several types of KPIs to be aware of. You can use them individually or together depending on what you are trying to measure.
Lagging KPIs — These show outcomes that have already happened. Example: Quarterly revenue, customer churn, completed hires.
Leading KPIs — These help predict future outcomes. Example: New leads generated, training completion rate, number of job applications.
Quantitative KPIs — These are number-based. Example: Sales volume, hours worked, time-to-hire.
Qualitative KPIs — These involve feedback and perception. Example: Employee satisfaction survey results, customer reviews.
Financial KPIs — These track your business’s financial health. Example: Net profit margin, cost per hire, return on investment.
All of these indicators help you answer questions like: Are we improving? Where do we need to adjust? What is working well?
How to Use OKRs and KPIs Together?
OKRs and KPIs are not the same thing, but they work very well together.
Think of it this way:
OKRs tell you what you want to achieve
KPIs tell you how you are doing along the way
Let’s say your objective is to improve employee engagement.
Your key results might be:
Launch an employee feedback survey
Hold monthly team check-ins
Offer quarterly performance reviews
Your KPIs might include:
Employee satisfaction score
Participation rate in check-ins
Turnover rate
Together, these metrics give you a full view of what your company is trying to accomplish and how close you are to achieving it.
Where to Start?
If you are new to performance tracking, start small:
Pick one objective that matters this quarter
Set three measurable key results that support it
Choose one or two KPIs to monitor progress
Track results weekly or monthly and adjust as needed
Share updates with your team to keep momentum
The key is not perfection. It is about creating consistency in how you plan, measure, and improve.
Final Thought
Setting goals without tracking them can lead to confusion and missed opportunities. Using OKRs and KPIs together helps you stay organized, accountable, and ready to grow. These systems are not just for large companies — they are useful for any business that wants to create a stronger team, improve results, and stay on track.
If you want help building a system for goal setting or performance tracking, visit us online. The Buzz HR provides practical tools and expert support to help your business measure what matters most.
