A review is only fair when people knew in advance what they were being measured on.
The core difference
A KPI (key performance indicator) is an ongoing measure of something you want to stay healthy, such as response time or collection rate. An OKR (objective and key results) describes a change you want in a given period, with measurable results that show whether you got there.
Using them together
- Use KPIs for steady, operational roles where the job is to keep a number healthy.
- Use OKRs for goals that stretch the team, such as launching a product or entering a market.
- Keep both lists short. Three to five of each per person is plenty.
Add structured feedback
Numbers do not capture everything. 360-degree feedback, where peers and managers contribute, gives context on collaboration and quality. Collect it on a schedule and use it to inform, not replace, the review conversation.
An example for a support team
A support team might hold KPIs for first-response time and customer satisfaction, which are ongoing health measures. In one quarter they might add an OKR: Objective: make self-service the first choice for customers. Key results: publish 30 help articles, cut repeat tickets on the top five issues by a third, and reach a set share of tickets resolved without an agent.
The KPIs keep the service healthy. The OKR drives a change the team has chosen.
Pitfalls to avoid
- Tying every OKR to pay. People then set safe, easy goals. Use OKRs to stretch, and judge performance with context.
- Too many goals. If everything is a priority, nothing is.
- Setting and forgetting. Review progress regularly, not only at year-end.
- Surprises at review time. Feedback should be ongoing, so the formal review confirms what the employee already knows.
Common questions
How often should we review? Quarterly for OKRs and a lighter monthly check-in works for many teams.
Is 360 feedback necessary? It is most useful for roles that depend on collaboration. Keep it structured and anonymous where appropriate.
How do bonuses fit in? Model them transparently before the cycle begins so expectations are clear.
Keep performance next to the rest of HR data
Reviews are fairer when managers can see attendance, goals and feedback together. Loom supports OKR tracking, 360-degree feedback and bonus allocation modelling in the same system as attendance and payroll.
See also: attendance and payroll in the same workflow.
See Loom HRMS in detail, or talk to the Valueye team about your setup.
