By Lori Eberly
Key Performance Indicators—or KPIs—tend to spark a strong reaction: Some leaders swear by them, others shy away, and many simply don’t know where to start. I’m a firm believer in the value of KPIs, but after more than two decades in home care, I understand why they can feel overwhelming or even off-putting to others.
Most of us entered this field because we’re driven by human connection—we want to make a difference in people’s lives. So, when words like “data” and “performance metrics” enter the conversation, it can feel like we’re moving away from that purpose. But if you’re reading this, you’re at least open to the power of measurement. Whether you’ve fully adopted KPIs or are just beginning to explore them, this article will help demystify the process and reframe KPIs through the lens of leadership.
It’s not just about measuring numbers—it’s about leading with intention. Think of KPIs as a modern leadership tool with a new, people-focused definition that aims to keep people interested, involved, informed and inspired.
What Exactly Are KPIs?
KPIs are performance metrics that show how your business is doing in relation to your goals or industry benchmarks. Think of them as the dashboard on your car—they highlight progress, efficiency and warning signs.
You should have KPIs for the overall business and for each team member. Ideally, individual KPIs roll up into your companywide objectives. If you’re just starting out, the HCP Benchmarking Report (which is put out by HCP, which leads the post-acute care industry in experience management, training and reputation management) is a great foundation to help you build your first set of KPIs.
KPIs typically fall into two categories:
- Financial KPIs track revenue, profit, and both direct and indirect costs.
- Operational KPIs focus on performance and efficiency, such as turnover rates, conversion rates, hours per client/caregiver, and scheduled versus billed hours.
You can find common home care KPIs in Figure 1, but don’t try to measure everything at once. Begin with a handful of key metrics and build from there.
You Can’t Improve What You Don’t Measure
Your profit and loss statement shows where you ended up, but KPIs show how you got there—and how you can do better. They help uncover hidden opportunities and spot trouble early.
Introducing KPIs With a People-First Approach
To make KPIs a meaningful part of your culture, they must do more than measure performance—they must engage and inspire your team.
Keep People Interested
KPIs may be completely new to some team members. If you simply present a list of things you plan to monitor, it can feel like micromanagement. Instead, build curiosity and purpose. Explain how KPIs help the team achieve shared goals and how they’ll serve as a roadmap to success.
Bring everyone together and outline your vision for the business. When your team understands the destination, they’re more motivated to help you get there.
Keep People Involved
Don’t dictate KPIs—create them with your team. After sharing your goals, ask each person to identify the key areas they manage. Collaborate to turn these into SMART (Specific, Measurable, Achievable, Realistic, Timebound) KPI goals.
When employees take part in setting their own KPIs, they feel ownership and are more likely to engage meaningfully.
Keep People Informed
Once KPIs are in place, clarity is essential. Everyone should understand what they’re tracking, why it matters, and how success will be evaluated.
Create a rhythm of communication: team members should report on their KPIs weekly or monthly, and you should hold regular reviews to assess progress. Use these check-ins not just to monitor results, but to identify barriers and brainstorm solutions together.
Keep People Inspired
Use team meetings to highlight successes, share struggles, and support each other. Show your KPI dashboard at every results meeting and give each team member a chance to speak about their metrics.
Be sure to track results over time, not just for a single period. This allows your team to spot trends, take accountability, and celebrate progress, which keeps motivation high.
The Takeaway
A healthy bottom line isn’t just about numbers—it’s about the systems and people behind them. KPIs are more than data points; they’re a dynamic leadership tool that helps guide decisions, encourage accountability, and highlight success.
But they’re only useful if you act on what they reveal. Like a dashboard warning light, a KPI trend won’t fix itself. Use what you learn to course-correct, fuel growth, and support your team every step of the way.
Celebrate the wins—but don’t ignore the signals.
Lori Eberly is a college professor and program director of health sciences at Appalachian State University. She is also the founder of Senior Care Strategy, a consulting and coaching firm dedicated to helping home care agency owners and senior living leaders grow their businesses with purpose, efficiency and heart. With nearly two decades of experience as a multi-unit home care franchise owner, she blends academic insight with real-world expertise to shape the future of health care leadership and senior care.
