OKR: stands for objectives and key results, a goal-setting method in which an objective describes what you want to achieve and three to five key results define how you'll measure it. OKRs are usually set quarterly and shared openly so teams can align their work.
Key takeaways
- An objective is qualitative and inspiring; key results are specific and measurable.
- Andy Grove developed OKRs at Intel, and John Doerr introduced them to Google in 1999.
- Many teams treat around 70% achievement on ambitious OKRs as a good result.
- OKRs work best when they're separate from performance ratings and pay.
How OKR works
Each objective answers "where do we want to go?" and each key result answers "how will we know we got there?" A company sets a few top-level OKRs, and teams write their own that support them. Key results should be outcomes, like "reduce time-to-fill from 48 to 38 days," not tasks, like "launch a new career page."
Teams review progress weekly or biweekly and score OKRs at the end of the quarter, often on a 0 to 1 scale. Ambitious OKRs, sometimes called stretch or aspirational, aren't expected to be fully hit; committed OKRs are.
HR teams use OKRs for their own work and often own the process company-wide, choosing tools, training managers, and keeping the cadence going.
OKR example
An HR team's quarterly OKR:
Objective: Make our first 90 days the best part of joining the company.
- KR1: Raise new hire satisfaction at day 30 from 7.1 to 8.5 out of 10.
- KR2: Get 95% of new hires fully equipped on day one, up from 70%.
- KR3: Cut 90-day voluntary turnover from 9% to 5%.
The team hits 8.2, 96%, and 6%, scoring roughly 0.8 overall: strong progress on an ambitious goal.
Why OKR matters for employers
OKRs help teams focus on a few things that matter and make priorities visible across departments. That matters for engagement: Gallup's latest US figures show 31% of employees engaged (Gallup employee engagement indicator), and knowing what's expected and how your work connects to company goals is a core driver.
The common failure is turning OKRs into a task list or a scorecard for bonuses. Keep them few, outcome-focused, and separate from ratings. Performance management software can host OKRs alongside one-on-ones and reviews.
Common OKR mistakes to avoid
Too many OKRs
Three objectives with three to five key results each is plenty.
Tasks instead of outcomes
Key results should measure results, not activities.
Tying OKRs to pay
People sandbag goals when bonuses depend on hitting them.
Set and forget
Review progress regularly, not just at quarter end.
OKR: questions people also ask
What does OKR stand for?
What is the difference between OKRs and KPIs?
How many OKRs should a team have?
Who invented OKRs?
Should OKRs be tied to performance reviews?
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HRTally glossary entries are written by people who have run US payroll, benefits, and HR operations, then checked line by line against primary sources such as the IRS, Department of Labor, EEOC, and Bureau of Labor Statistics. Dollar limits and rates are for 2026 unless stated. We review every entry at least twice a year and whenever a rule changes. This page explains general rules and isn't legal or tax advice; state law can differ. Read our editorial standards.
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<blockquote>OKR stands for objectives and key results, a goal-setting method in which an objective describes what you want to achieve and three to five key results define how you'll measure it. OKRs are usually set quarterly and shared openly so teams can align their work.</blockquote><p>Source: <a href="https://www.hrtally.com/hr-glossary/okr/">HRTally HR Glossary, OKR</a></p>
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.