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Effective goal-setting (and goal follow through) are foundational for the success of every organization. That’s where Objectives and Key Results (OKRs) come in—they’re a relatively new tactic to set and achieve goals, with transparency and effective measurement.

But they’re not just useful for Sales and creative departments. OKRs for HR professionals can help transform your Human Resources team from a purely administrative department into a serious strategic partner.

Here’s what you need to know about OKRs, how to implement them for your HR team, and the impact they can have on your organization:

What are OKRs for HR?

We’ve written about OKRs a few times before, and for good reason. Originally popularized by Intel and later adopted by companies like Google, OKRs provide one of the most effective frameworks for defining and tracking objectives and their outcomes.

For HR professionals, OKRs offer a structured approach to aligning day-to-day HR initiatives with top-down organizational goals so that they ultimately work together towards strategic success. Unlike older styles of performance metrics, OKRs put extra emphasis on transparency, alignment, and accountability, helping you and your HR team focus on short and long term priorities while accurately measuring their impact on business success.

OKRs can encompass a wide range of HR objectives, from talent acquisition and employee engagement to diversity and inclusion initiatives. They provide HR professionals with a clear roadmap for improving key areas of the employee lifecycle and driving organizational growth. By setting ambitious yet achievable objectives and tracking progress with measurable key results, your team can drive continuous improvement and show just how valuable HR can be as a strategic partner to leadership.

How are OKRs for HR Used By Organizations?

OKRs for HR serve as a powerful tool for aligning human resources initiatives with broader business objectives and driving strategic outcomes. Here's how they are typically used:

Alignment with organizational goals: OKRs for HR should be aligned with the overall strategic objectives of your organization. By setting HR goals that directly contribute to the company's mission, vision, and company values, your HR team can ensure that their efforts are focused on activities that drive business success—and that this contribution can be measured.

Setting priorities: OKRs help HR teams prioritize their initiatives and allocate resources effectively. By identifying key areas of focus and setting clear objectives, you can ensure that your efforts are directed towards the activities that have the greatest positive impact.

Measuring performance: OKRs provide a framework for measuring the success of HR initiatives and tracking progress over time. By defining specific key results that clearly indicate your progress towards the strategic goals you’ve set, your team can monitor its performance and make data-driven decisions to update and modify its strategy as needed.

Driving accountability: With OKRs for HR, you can create a culture of accountability within your team. By assigning ownership of specific objectives and key results to individuals or smaller teams, you can make sure that everyone is responsible for contributing to the achievement of the main goals at your organization.

Continuous improvement: OKRs promote a culture of continuous improvement within the HR function. By regularly reviewing progress against objectives and key results, HR teams can identify areas for optimization and adjust their strategies accordingly to drive better outcomes.

By leveraging OKRs effectively, your HR department can optimize their efforts and work in the most effective, efficient, and transparent way to high-level organizational goals.

Benefits of Setting OKRs

Setting OKRs for HR allows you to enhance the effectiveness of your projects, advance day-to-day priorities all while driving meaningful impact within your organization. Here are some key benefits:

HR Professionals

Strategic alignment: As mentioned above, OKRs align HR initiatives with broader organizational goals and strategic objectives. By setting HR-specific objectives that directly contribute to your company's mission and vision, you and your HR team can ensure that your efforts are perfectly in step with the overall direction of the business. Not only that, demonstrating this alignment and transparently working towards holistic goals gives your HR team an important seat at the strategy-making table.

Improved focus and clarity: OKRs for HR provide you with clear priorities and objectives, helping you focus your efforts on activities that have the greatest impact. By defining specific objectives and key results, your HR team can gain clarity on what needs to be achieved first and foremost, and can direct their resources towards achieving those goals before adding additional tasks or priorities onto their plate.

Data-driven decision making: OKRs promote data-driven decision-making within the HR function. By setting measurable key results that indicate progress towards objectives, HR professionals can track performance, analyze trends, and make informed decisions based on objective data rather than subjective opinions.

Enhanced communication and collaboration: You can facilitate better communication and collaboration among your team and across departments with OKRs for HR. By aligning objectives with teams from across your organization and sharing key results transparently, you can create a culture of collaboration, making sure everyone is working towards common goals and objectives.

Increased motivation and engagement: Setting OKRs can increase employee motivation and engagement for you and your team by offering clear goals and objectives to work towards. When people understand how their work contributes to the organization's success and see their progress towards achieving their goals, they are more motivated and engaged in their work.

The Organization

OKRs for HR aren’t just good for human resources—effectively implemented, their downstream effects will be a boost to any organization’s bottom line. This includes:

Improved employee performance: By setting clear objectives and key results aligned with organizational goals, OKRs for HR help improve employee performance. When your HR team understands what is expected of them and how their work contributes to overall success, they are more motivated to perform at their best.

Learn more: A Guide to Mastering Performance Management

Enhanced talent acquisition: Organizations with well-defined OKRs and foster a culture of goal-setting are more attractive to top talent. A defined vision and purpose make it easier to attract and hire the best candidates.

Reduced talent costs: Effective OKRs for HR can lead to reduced turnover in the department and increased employee retention. When employees are engaged, motivated, and aligned with organizational goals, they are less likely to leave the company, reducing cost of recruitment, onboarding process, and training new employees, and maintaining an unbroken chain of organizational and personnel knowledge in your HR department.

Stronger employer brand: Organizations that set and achieve meaningful OKRs are seen as more successful and desirable places to work. A strong track record of goal achievement can enhance your organization's reputation as an employer of choice, leading to increased interest from potential candidates and improved employer branding.

Increased profitability: Ultimately, the successful implementation of OKRs should drive increased profitability for your organization. By aligning HR efforts with strategic objectives, your organization can improve efficiency, productivity, and performance, leading to higher revenues and a better bottom line.

HR OKR Examples

Now that we’ve made it clear what OKRs for HR means and why they’re important for HR professionals and the organization, it’s time to dive into exactly what those OKRs might look like. Here are a few examples of what how an OKR might look at your organization:

For company culture

Objective: Foster a positive and inclusive company culture.

Key Results:

Increase employee satisfaction scores by 10% in the annual engagement survey.
Launch three company-wide culture initiatives focused on diversity, equity, and inclusion.
Achieve a Glassdoor rating of 4.5 stars or higher based on employee reviews.

For employee engagement

Objective: Improve employee engagement and morale.

Key Results:

Increase employee participation in company-sponsored events by 20%.
Implement regular pulse surveys to measure employee satisfaction and engagement, with a target score of 80%.
Reduce employee turnover rate by 15% compared to the previous year.

For recruitment

Objective: Attract and hire top talent efficiently.

Key Results:

Decrease time-to-hire for key positions by 20%.
Increase the diversity of the candidate pool by implementing targeted recruitment strategies.
Achieve a candidate satisfaction rating of 4 out of 5 based on post-interview feedback.

For employee retention

Objective: Improve employee retention rates.

Key Results:

Reduce voluntary turnover rate by 10% within the next six months.
Implement retention initiatives such as career development programs and mentorship opportunities.
Conduct exit interviews with departing employees to identify trends and areas for improvement.

For employee wellness

Objective: Promote employee health and well-being.

Key Results:

Increase participation in wellness programs by 25%.
Reduce absenteeism rates by 15% through wellness initiatives and incentives.
Implement flexible work arrangements to support work-life balance.

For performance management

Objective: Enhance performance management processes.

Key Results:

Implement a new performance management system and train managers on its use.
Increase the frequency of performance feedback sessions to bi-monthly for all employees.
Improve the completion rate of performance evaluations to 100%.

For training and development

Objective: Invest in employee growth and development.

Key Results:

Increase participation in training programs by 30%.
Develop individualized development plans for all employees based on their career goals and aspirations.
Achieve a 90% satisfaction rate among employees who participate in training and development activities.

For ensuring compliance

Objective: Ensure compliance with relevant labor laws and regulations.

Key Results:

Conduct regular audits to ensure HR policies and practices align with legal requirements.
Provide ongoing training to HR staff and managers on compliance-related topics.
Achieve a 100% compliance rate with all labor laws and regulations.

Grow Your HR Team with Omni

OKRs offer a powerful framework for HR to align employee goals with organizational objectives, increasing employee performance and engagement. OKR software can streamline the process, making it easier for HR to set, track, and manage objectives, fostering a culture of transparency and accountability.

Omni’s performance management system powers your business with access to reports and analytics that provide valuable insights for measuring key results. Easily set, track, and measure OKRs across your teams within one, intuitive dashboard.

To learn more about how Omni can help you unlock your business’ potential, schedule a demo with our team today.

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