What is KPI (Key Performance Indicator)?
A KPI (Key Performance Indicator) is a measurable value that shows how effectively you or a team are achieving a specific objective.
Key takeaways
- A KPI (Key Performance Indicator) is a measurable value that shows how effectively you or a team are achieving a specific objective.
- KPI (Key Performance Indicator) matters when you read a salary slip, compare job offers, or plan your career.
- Knowing how KPI (Key Performance Indicator) works helps you make sharper, better-informed job decisions.
KPI (Key Performance Indicator) — meaning & explanation
A Key Performance Indicator is a quantifiable metric used to track progress toward a goal. KPIs put numbers on performance — for example, deals closed, tickets resolved or uptime maintained — depending on the role.
In India, KPIs typically sit within your KRAs and feed directly into appraisals and variable-pay decisions. Clear KPIs make performance objective and comparable across a team.
Knowing your KPIs tells you exactly what is being measured and how your raise or bonus is decided. Tracking them through the year helps you demonstrate impact at appraisal time.
Related glossary terms
KRA (Key Result Area)
A KRA (Key Result Area) is a broad area of responsibility in your role where results are expected, defining wh…
Appraisal / Increment
An appraisal is a periodic review of your performance that often determines your salary increment, bonus and p…
Variable Pay
Variable pay is the part of your compensation that depends on performance or targets, paid on top of fixed sal…
Onboarding
Onboarding is the process of integrating a new hire into a company — paperwork, access setup, training and int…
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More glossary terms
KPI (Key Performance Indicator) — FAQs
What does KPI (Key Performance Indicator) mean?
A KPI (Key Performance Indicator) is a measurable value that shows how effectively you or a team are achieving a specific objective.
Why does KPI (Key Performance Indicator) matter to a jobseeker?
Knowing your KPIs tells you exactly what is being measured and how your raise or bonus is decided. Tracking them through the year helps you demonstrate impact at appraisal time.
Is KPI (Key Performance Indicator) the same as Key Performance Indicator?
Yes — KPI (Key Performance Indicator) is also commonly called Key Performance Indicator, Performance metric. A KPI (Key Performance Indicator) is a measurable value that shows how effectively you or a team are achieving a specific objective.
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