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 Performance Indicator
- Performance metric
Updated 2026-07-25 · one of 47 terms in the OnJob career glossary
Key takeaways
- A KPI (Key Performance Indicator) is a measurable value that shows how effectively you or a team are achieving a specific objective.
- Also called Key Performance Indicator, Performance metric.
- KPIs in India typically sit inside your KRAs and feed directly into the appraisal rating and any variable-pay payout.
- Knowing your KPIs tells you exactly what is being measured and how your raise or bonus is decided.
What does KPI (Key Performance Indicator) mean?
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.
How does KPI (Key Performance Indicator) work in India?
KPIs in India typically sit inside your KRAs and feed directly into the appraisal rating and any variable-pay payout. A KRA names the area you own, such as client retention; the KPI is the measurable target attached to it, such as the renewal rate on your accounts. Because variable pay is often released against KPI achievement at the end of a quarter or half-year, it is worth confirming at the offer stage which KPIs your payout depends on and who measures them.
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 Performance metric?
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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