OKR usage in human resources?
Today, Human Resources (HR) departments are strategic partners in the company. They are not simply administrative tasks like payroll or paperwork; they play a key role in motivating human potential and directly impacting the company's success.
Success in HR is measured by investment in employee happiness, performance, and commitment to the company. In this regard, the OKR (Objectives and Key Results) methodology offers HR two significant strengths: It makes operational processes more efficient and establishes a strong and meaningful connection between the company's larger goals and the individual goals of employees.
Key steps to successfully implementing OKR in HR
The OKR system offers Human Resources a powerful strategic tool. It enables management of all HR processes, from improving employee satisfaction to recruiting and retaining talented individuals, with clear goals and measurable results. This allows the HR department to go beyond operational tasks and become an effective strategic partner, making data-backed decisions that align fully with the company's core objectives and directly contributing to business results.
1. Set Strategic HR Goals (Objective)
The OKR journey for HR begins with ambitious, qualitative goals that serve the company's bigger picture and motivate employees. These goals answer the questions, "What is our ultimate goal?" and "What do we want to achieve?"
For example:
"To make the company the first choice for the most talented employees in the industry."
"To create a work environment where employees feel valued and can thrive."
2. Define Measurable Results (Key Results)
Break down your inspiring goal into concrete, measurable steps. We call these "Key Results." Key Results are the numerical answers to the question, "How will we know for sure that we've achieved our goal?"
Each Key Results should be clear and measurable, leaving no room for debate. Demonstrate success with numbers.
For example, for the goal of "Increasing employee belonging," Key Results might be:
• Increase the average score on the employee satisfaction survey from 75% to 85% this quarter.
• Reduce the voluntary turnover rate from 15% to less than 10%.
3. Track OKRs
OKRs are a "living process," not a "plan on paper." HR's OKRs should be shared for everyone in the company to see. This creates a shared sense of purpose and encourages teamwork.
Hold brief weekly or biweekly check-ins (progress) to review progress and any obstacles encountered, keeping goals current and revising them as needed. Recognize team members' contributions and evaluate employee feedback.
Benefits of Using OKR in HR:
It synchronizes with the strategy. OKRs align everything HR does with the company's core objectives. HR is no longer just a management unit; it becomes a strategic partner who directly shapes the company's success.
Speaks with Evidence. The feeling of "it's going well" is replaced by concrete data and figures. With Key Results, HR can demonstrate the impact of its work with graphs and measurable achievements. This strengthens your budget and resource requests and solidifies your decision-making processes.
Builds Trust. OKRs open HR's doors to the entire company. They allow everyone to see "What are we doing, where are we heading?" This openness is the most effective way to gain trust and accountability from management and employees. It Inspires Team Spirit. OKRs unite the entire HR team around the same goal. Everyone clearly sees how their contributions contribute to this shared goal. This strengthens a sense of belonging and ignites teamwork.
Strengthens Success
Reviewing OKRs weekly or biweekly ensures progress is tracked and goals remain viable. OKRs are guidelines, not rigid rules. It's important to remember that goals can be revised if necessary. Leaders' adoption and leadership of OKRs are crucial to the success of the process.
HR use cases and OKR use cases
The areas most commonly focused on OKRs for HR teams are compensation, performance, training and education, company culture, employee retention, and recruiting.
Example of an OKR in the recruitment process:
Goal: Hire the most suitable person and create an effective recruitment mechanism.
• Key Result 1: Increase the candidate application pool by 25%.
• Key Result 2: Increase the satisfaction rate of new hires to over 85%.
• Key Result 3: Reduce the average time to fill a vacant position from 2 months to 1 month.
In short, the OKR framework gives the Human Resources department a new identity. HR is now elevated to a position not only of management but also of direction, as a strategic partner of the company. This system allows HR to transparently announce its goals to the entire company, track progress towards these goals in real time, and instantly adapt to changing priorities.
HR is no longer a cost center, but a value creation center that directly contributes to the growth of the company.
Ready to Get Started with DevOKR?
Discover how DevOKR can help your organization achieve its goals with our powerful OKR management platform.