Improve time to hire professionals & executives
The number one reason why people turn down job offers is because they are offered another. 26% of candidates say they left the hiring process because it “took too long”. In the competitive market, first-to-offer has the first pick of talent. If you move slowly, you don’t just lose the best candidates – you also lose revenue.
Evaluation that works
Surface the qualities that matter
Interview flexibility
Their timing, on their device
Better job fit
Better fit, longer stay
First to talent
Secure top candidates quicker
Improve time to hire professionals & executives
The number one reason why people turn down job offers is because they are offered another. 26% of candidates say they left the hiring process because it “took too long”. In the competitive market, first-to-offer has the first pick of talent. If you move slowly, you don’t just lose the best candidates – you also lose revenue.
Evaluation that works
Surface the qualities that matter
Interview flexibility
Their timing, on their device
Better job fit
Better fit, longer stay
First to talent
Secure top candidates quicker
Improve time to hire professionals & executives
The number one reason why people turn down job offers is because they are offered another. 26% of candidates say they left the hiring process because it “took too long”. In the competitive market, first-to-offer has the first pick of talent. If you move slowly, you don’t just lose the best candidates – you also lose revenue.
Evaluation that works
Surface the qualities that matter
Interview flexibility
Their timing, on their device
Better job fit
Better fit, longer stay
First to talent
Secure top candidates quicker
7 Tips to Set the Best KPIs for Your Business
- admin
- May 6, 2025
- 2:16 pm
- No Comments
Setting effective Key Performance Indicators (KPIs) is one of the most important steps in improving employee productivity and business performance. For many businesses in Indonesia, KPIs are not just measurement tools, they help align team efforts with business goals, identify performance gaps, and ensure accountability across departments.
However, simply having KPIs isn’t enough. The real challenge lies in setting the right ones, KPIs that are meaningful, measurable, and actionable.
In this article, we will share 7 practical tips to help you set better KPIs for your organization. These tips are suitable for HR teams, business leaders, and operational managers looking to improve performance tracking and decision making.
Why Do KPIs Matter in Business?
KPIs are critical because they provide a clear, objective way to evaluate whether your team or business is on the right path. Without clear KPIs, it’s easy to lose focus, waste time, and make decisions based on assumptions rather than facts.
In Indonesia’s increasingly competitive market, well-defined KPIs help companies stay agile, improve employee accountability, and drive continuous improvement across departments.
When teams understand the purpose behind each KPI, they’re more likely to stay motivated and engaged. KPIs also make it easier to connect day-to-day work to long-term business growth, something many employees value when seeking a sense of purpose in their roles.
1. Align KPIs with Business Objectives
The first rule of setting effective KPIs is making sure they reflect your company’s goals.
Start by asking: What does success look like for our business this year?
Whether your goals are to increase revenue, reduce employee turnover, or improve customer satisfaction, each KPI should directly support a strategic business objective.
For example:
Business goal: Increase sales by 20%
KPI: Monthly revenue growth in percentage
Business goal: Improve customer experience
KPI: Customer satisfaction (CSAT) score
When KPIs are clearly linked to business outcomes, employees understand why they matter—and how their efforts contribute to overall success.
2. Make Your KPIs Specific and Focused
Avoid vague or broad metrics. A good KPI should be specific, so it’s easy to track and act upon.
For example:
Vague: “Improve team productivity”
Specific: “Reduce project turnaround time from 10 days to 7 days”
The more specific your KPI, the easier it is to measure progress and make improvements.
3. Choose Measurable Metrics
A KPI must be quantifiable. It should answer the question: How will we know we’ve succeeded?
Use numbers, percentages, or clear milestones.
Examples of measurable KPIs include:
Employee retention rate (measured annually)
Percentage of customer complaints resolved within 48 hours
Sales conversion rate from new leads
Measurable KPIs also make it easier to track performance over time and compare results across teams or departments.
4. Set Realistic and Achievable Targets
A common mistake is setting KPIs that are too ambitious or disconnected from real business conditions. When KPIs are unreachable, they can demotivate teams instead of inspiring them.
Use historical performance data or industry benchmarks to set realistic targets. Involve team members during the goal-setting process to ensure buy-in and feasibility.
Example:
Unrealistic: “Reduce production costs by 50% in one quarter”
Realistic: “Reduce production costs by 10% over six months through process improvements”
When employees are involved in setting their targets, they feel more ownership over the results. This also promotes collaboration and open communication between teams and their managers.
4. Set Realistic and Achievable Targets
A common mistake is setting KPIs that are too ambitious or disconnected from real business conditions. When KPIs are unreachable, they can demotivate teams instead of inspiring them.
Use historical performance data or industry benchmarks to set realistic targets. Involve team members during the goal-setting process to ensure buy-in and feasibility.
Example:
Unrealistic: “Reduce production costs by 50% in one quarter”
Realistic: “Reduce production costs by 10% over six months through process improvements”
When employees are involved in setting their targets, they feel more ownership over the results. This also promotes collaboration and open communication between teams and their managers.
5. Keep KPIs Relevant to Roles and Departments
Different teams should have different KPIs that match their responsibilities.
For example:
HR: Time-to-hire, employee engagement index
Marketing: Website traffic growth, conversion rate
Operations: Order fulfillment time, quality defect rate
Finance: Budget variance, accounts receivable turnover
Relevant KPIs help teams focus on what they can control and improve, leading to more effective performance management. It’s also important to ensure that team-level KPIs contribute to department-wide or company-wide objectives. This way, there is alignment across the organization, and individual achievements help push the company forward.
6. Monitor and Review KPIs Regularly
KPIs are not set in stone. Business environments change, and so should your performance indicators.
Set regular review cycles, monthly or quarterly to assess if your KPIs are still aligned with your goals. During these reviews, ask:
Are we on track to meet our targets?
Are these KPIs still relevant?
What challenges are we facing?
Don’t be afraid to adjust KPIs based on feedback or new business developments. A flexible approach ensures your metrics remain actionable and relevant.
Reviews are also a chance to celebrate wins, recognize top performers, and re-align your team when priorities shift.
7. Communicate KPIs Clearly Across the Organization
Even the best KPIs are ineffective if employees don’t understand them.
Ensure every employee knows:
What the KPIs are
Why they were chosen
How performance is measured
What success looks like
Use visual dashboards, team meetings, and progress updates to keep everyone informed and aligned. This encourages transparency, accountability, and motivation. Communicating KPIs clearly also reduces confusion and helps team members see how their work connects to broader company goals, building a more engaged and focused workforce.
Moving Beyond Manual KPI Management
Setting the right KPIs is only the first step in effective KPI management. Managing them efficiently, especially in growing organizations, can be time-consuming and prone to inconsistency if done manually.
To support continuous improvement, many companies are turning to digital tools that make it easier to track, analyze, and act on KPI data. These tools help teams save time, reduce subjectivity in performance reviews, and create more consistent appraisal processes.
Supporting Smarter KPI Program Management with Digital Tools
One platform that supports smarter KPI program management is DEUS Enhance, a performance evaluation solution designed to improve how businesses manage performance metrics.
Rather than relying on spreadsheets or manual input, structured platforms provide a more efficient way to:
Align KPIs with performance reviews
Track progress with measurable data
Identify training needs
Support performance-based rewards
Such features help organizations conduct more objective evaluations while reducing administrative overhead. For teams looking to move from manual to digital processes, adopting structured tools can offer long-term value.
Conclusion: Turn KPI Planning Into Performance Action
KPI management is powerful when it is tied to clear goals, supported by data, and consistently communicated across the organization. By applying these 7 tips, you can create a performance management system that not only tracks progress, but also drives meaningful results.
If your business is looking to improve how to implement KPI in an organisation, it may be worth exploring tools that simplify the process while ensuring fairness and transparency. A structured platform can help you make better decisions, reward excellence, and keep your teams aligned with your long-term vision.
Effective KPI program management isn’t just about numbers. It’s about creating focus, clarity, and motivation for everyone involved.
Check out DEUS HCS for more information about better human resource management strategies!
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