The Power of HR OKRs: Practical Examples for Business Success

HR professionals are the conductors of your business's symphony: They give direction, set the tempo, and provide clarity. 

But that also means they often wear many hats—from recruitment and policy implementation to fostering positive company culture and keeping employees engaged. The responsibilities can be overwhelming and, at times, downright confusing. 

Creating HR OKRs can set the framework for alignment, impact, and long-term vision, a clear path, ensuring everyone is on the same page and working together to achieve a common goal.

This article will: 

• Define HR OKRs. 
• Highlight the benefits of implementing the OKR framework in your HR department. 
• Share practical hr okr examples categorized by HR function to help you get started.

📊 What are human resources OKRs?

Human resources OKRs (Objectives and Key Results) are specific targets for the HR department to achieve within a particular time frame. The "Objective" represents a clear and inspirational goal, while the "Key Results" are specific metrics or outcomes that measure progress toward achieving that objective. 

 By using OKRs, HR teams can align their strategies with broader organizational goals, drive performance, and foster accountability.

Let's break down OKRs further.

When there's a clear system in place, you can think of better initiatives that will drive employee engagement, collaboration, and performance within the HR Team. That's what HR OKRs are for.

What are the key differences between HR OKRs and KPIs?

Both OKRs and KPIs (Key Performance Indicators) are frameworks organizations use to measure company performance, but the two have stark differences. OKRs use a goal-setting approach to produce a desirable result. In contrast, KPIs have performance metrics that measure how well your organization functions. 

Another thing about KPIs is that they are standalone numbers, while OKRs are more strategic to help your company move forward. KPIs usually track progress from the status quo, while OKRs focus on path, progress, or purpose.

Here's a summary table to help you distinguish OKRs and KPIs: 

Ultimately, KPIs and OKRs enable data-driven HR processes that help you stay on track, be proactive, and be ready to face possible challenges in the company. While the two approaches are different, nothing is greater than the other. In fact, the data you get from KPIs and OKRs can be an excellent foundation for your people strategy in adapting to workforce changes.  

"HR OKRs are all about setting ambitious goals and tracking progress toward achieving them, while KPIs are about measuring specific HR metrics. When used together effectively, they can help HR teams thrive in today's dynamic business environment." Olivia Langford, Senior Editor at nycrosswordtoday.com.

🎯 12 Human resources OKR examples (grouped by HR function)

HR professionals have many roles to play in managing talent and ensuring positive employee experiences, such as employee engagement,  performance management, and the onboarding process, to name a few. 

The goal is to see improvements in these areas and significantly impact the company's overall performance. To achieve this, HR teams set up OKRs.

This can be overwhelming at first, so here are some examples of OKRs categorized according to HR function. 

HR function: Talent acquisition

Objective: Become a top employer of choice 

Key results:  

• Increase compensation by 50% more than the industry standard.
• Increase brand awareness by 10% compared to the previous year. 
• Increase offer acceptance rate by 5% compared with last quarter. 

HR function: Talent management

Objective: Encourage employees to stay long-term in the company.

Key results:

• Increase overall employee net promoter score (eNPS) from 10 to 15.
• Decrease employee turnover by 25%.
• Increase employee engagement by 10 points more based on your employee survey.
• Improve employer brand recognition by 10% compared to the previous year.
• Enhance the onboarding program: improve the feedback scores from new hires after completing the onboarding process with 10 points.

HR function: Performance management

Objective: Maintain continuous internal communication and feedback with the team.

Key results:

• Organize regular check-ins with managers 2-3 times per quarter. 
• Achieve a 50% completion of the personal development program for the 2nd quarter using a performance management system.
• Accomplish employee performance reviews by 90% at the end of the fiscal year.

🤝🏻 Make setting up check-ins a breeze with our collection of one-on-one meeting templates. With 17 different options, we can guarantee there is something for you.

HR function: Learning and development

Objective: Train current leaders and create learning and development programs for employees with leadership potential.

Key results:

• Establish a leadership development program using an AI tool for HR.
• Increase enrollments by 5% in the training programs by the end of the year.
• Onboard 70% of senior executives to mentorship or coaching programs.

HR function: Organizational culture

Objective: Promote an ideal workplace culture for existing employees. 

Key results:

• Organize quarterly culture sessions to refine the current organizational structure 
• Increase employee satisfaction rating by 20% in Q3
• Encourage employee referrals by an additional 10% compared to the previous year

HR function: People operations

Objective: Improve processes of the people operations team to increase overall employee satisfaction and engagement.

Key results:

• Minimize delays and turnaround time when addressing concerns from two weeks to one week.
• Achieve 100% completion of employees receiving workplace safety training programs by the end of the year.
• Maximize the use of people analytics and data to create a workplace performance management plan by the end of the year.

HR function: Employee retention

Objective: Improve internal employee satisfaction.

Key results:

• Decrease the employee attrition rate by 25%.
• Define core competencies and career paths for 50% of employees by Q3.
• Achieve 100% compliance for feedback during exit interviews among resigned employees.

HR function: HR compliance

Objective: Prepare for possible risks and problems.

Key results:

• Achieve an 80% completion rate of all HR compliance training by Q4.
• Receive an 80% rating in the annual HR audit.
• Onboard all HR staff on General Data Protection Regulation (GDPR) training.

HR function: Employee wellness

Objective: Make a positive company culture. 

Key results:

• Earn a Great Place to Work certification by Q4.
• Increase enrolled employees in fitness and wellness training programs by 10%.
• Promote a healthy food policy in the workplace.

HR function: Career development

Objective: Elevate employees' professional growth by enhancing career development opportunities within the organization.

Key results:

1. Implement a mentorship program where 80% of interested employees are paired with mentors from senior roles within six months.
2. Launch a series of monthly career workshops, achieving at least 90% attendance from middle management and below over the next quarter.
3. Increase the utilization of internal job rotation and shadowing opportunities by 50% in the next year, ensuring employees gain exposure to different roles and departments.

🚀 Check out our analysis of 8 effective career development tools that can help your team meet their objectives.

HR function: Diversity, equity, inclusion and belonging

Objective: Promote an inclusive work environment.

Key results:

• Review and ensure equal gender pay.
• Achieve a 100% participation rate during DEI-related training events.
• Ensure equal representation and reduce biases in the recruitment process.

HR function: Compensation and benefits

Objective: Create a competitive salary and benefits package to attract more talent.

Key results:

• Align 80% of jobs to the industry standard by Q4.
• Achieve gender pay equity by Q4.
• Achieve salary satisfaction rate increase by 20% in Q4.
• Increase salary competitiveness ratio by 50%.

🪜 5 Steps to design HR OKRs and avoiding common challenges

When creating your OKRs, don't just leave it up to the executives to decide where the company is headed. If you want to stay on track, get team members' input to understand how to make your OKRs work for the team. But sometimes, challenges such as setting unrealistic or misaligned goals can happen, which can hinder in achieving your key results. 

To help avoid roadblocks along the way, here are five steps to design your OKRs.

Setting your objectives 

Take a step back and look at your company vision. 

How can you reach this vision with your HR objectives? 

HR OKRs help you see the big picture so you can start with a broad set of goals leading up to how the company should run in a given time. Then, create a step-by-step process and key results to determine whether it aligns with your company's vision. 

Let's say you envision your company expanding overseas or increasing global operations. You can start developing quarterly and measurable goals to help achieve them. 

HR OKRs are meant to be bold and challenging, but there must be actionable next steps to reach your company's vision.

Developing key results

A common challenge HR managers encounter is focusing too much on big and ambitious goals and forgetting to set metrics, which are your key results. 

Your key results are there so you can determine the success of your objectives. This means you need to have your stats regularly monitored until you reach the goals you have set in a period. To do this, break them down into smaller goals and make sure they are measurable. 

Aligning HR OKRs with the overall company business goals

A common pitfall in the OKR-setting process is when HR professionals become overly focused on their departmental goals, overlooking their alignment with the broader company objectives. To avoid this, chat with team leads and upper management. It will help you see where your team fits into the overall company jigsaw and how your OKRs can boost the bigger goals.

 By keeping the lines of communication open and getting everyone on the same page, you can ensure HR OKRs are in sync and working in harmony with the whole company's direction.

Reviewing and tracking progress

Since setting HR OKRs is time-bound, the key to preventing your goals from derailing is periodically reviewing and making adjustments as needed. Some HR teams can be so focused on the execution and initiatives that they fail to regularly review their OKRs and determine if there should be changes along the way. 

Ideally, you should set a brief weekly, monthly, or quarterly review. 

For example, suppose you aim to achieve quarterly OKRs. In that case, you can start by challenging your team members to achieve 15% completion each week. This creates a sense of urgency for them and allows you to stay on track with its feasibility and possible challenges with regular updates.

Recognizing quarterly or regular OKR achievements

Remember that your team members are working together to help achieve key results, so the best way to keep them motivated is to recognize their small wins and the team's progress in attaining OKRs. 

You can set up regular check-ins and plan rewards based on their achievements for a given period.

📈 Why OKRs are crucial for HR functions: 6 Strategic considerations

HR OKRs are crucial in ensuring HR effectiveness. They set the pace for HR teams, enabling them to bring a strategic contribution to reaching organization-wide goals.

They help align HR goals with company strategy 

When you have specific HR goals, you can easily identify how they fit into the grander scheme of your company strategy and help you strategize better. 

They enhance HR performance

By setting specific objectives and key results aligned with the organization's goals, HR teams can streamline their efforts, improve efficiency, and measure their success more precisely. This empowers HR teams to optimize their strategies, ultimately contributing to the entire organization's enhanced performance, which can increase employee satisfaction. 

They ensure actionable outcomes 

HR OKRs are more than just goals; they are a blueprint for success. HR OKRs are structured to be specific, measurable, and time-bound, making them clear and easy to act upon.

They promote transparency and accountability for HR managers

With clear objectives, you will be more inclined to communicate with your team members about how to achieve them. This promotes a collaborative company culture while taking ownership of the OKRs you have set for your team. 

They frame a proactive approach to prepare for future challenges

HR OKRs are not just about addressing current challenges; they also let you prepare for future challenges. By setting clear objectives and key results, HR teams can anticipate roadblocks, identify skill gaps, and plan your company's next move in case unforeseeable challenges occur. 

They drive focus, keeping top priorities center stage

When you set a few objectives, you can prioritize what matters the most, identify which goals are most important, and stick to a timeline to achieve key results.

Ideally, keep OKRs to a minimum of three or four so it's easier for your HR team to focus. 

➡️ Guess what? You don't have to build HR OKRs from scratch! Check out the best talent management systems to guide you.

➡️ Track OKRs and drive performance with Zavvy

OKRs are the driving force that can guide you in making better talent decisions and contributing to your company's success. 

But with all things considered, it isn't easy to keep track of your OKRs on your own.

🎯 Zavvy's goal management software can help you. Collaborate on clear OKRs and goals, aligning the company and prioritizing performance. 

But you can do much more with Zavvy. 

More than an HR tool, Zavvy is a strategic HR buddy assisting you in hitting those company targets and key results. 

Whether you're aiming to boost employee engagement or career development in your organization, Zavvy can make HR teams' lives easier:

• 🧭 Create meaningful career frameworks through the career pathing software to meet those career development key results.
• 🌱 Provide data-based development plans using Zavvy's employee development software that defines focus areas and career progression so you can boost retention. 
• 🧮 Identify skill gaps with Zavvy's skills matrix software and define clear action plans to meet your objective of bridging skill gaps.
• 🤩 Track whether your engagement initiatives are yielding results. Use our employee engagement software to track key metrics like eNPS and well-being scores. 

📅 Ready to meet your OKRs and make a lasting impact on your company? See the power of Zavvy for yourself by booking a demo today.