Are your HSE Key Performance Indicators (KPIs) actually improving safety—or just ticking boxes?
In contractor-heavy environments like oil and gas operations, KPIs are more than dashboards. According to IOGP Report 423, they must be relevant, transparent, and actionable, creating real accountability between operators and contractors. Poorly selected KPIs can mask risk, while meaningful ones drive change.
At PLC Group Malaysia, we help operators and contractors implement smart KPI systems that reflect true HSE performance—whether on offshore rigs or inland refineries.
Why HSE KPIs Are Essential in Contractor Management
- Enable proactive oversight of contractor safety practices
- Build a culture of continuous improvement and collaboration
- Identify weak signals before they become major incidents
- Align contractor actions with operator expectations and standards
Types of Contractor HSE KPIs Recommended by IOGP 423
1. Leading Indicators (Proactive)
- % of planned HSE training completed
- Number of safety observations reported
- Frequency of Toolbox Talks conducted
- Close-out rate for safety-related corrective actions
2. Lagging Indicators (Reactive)
- Total Recordable Injury Rate (TRIR)
- Lost Time Injury Frequency (LTIF)
- Number of regulatory non-compliances
- Equipment damage and environmental incidents
3. Project-Specific Indicators
- Induction completion rates for new hires
- Emergency drill participation rates
- Competency assessments for high-risk roles
Best Practices for KPI Implementation
- Set clear targets upfront in contracts and onboarding
- Use shared dashboards accessible to both operator and contractor
- Regularly review KPI relevance based on work scope and incident trends
- Balance leading and lagging indicators for full-picture safety performance
- Include qualitative feedback, not just numbers—context matters
Common Mistakes to Avoid
- Relying solely on lagging indicators (e.g., injury counts)
- Overloading contractors with too many KPIs
- Failing to act on KPI trends or anomalies
- Using KPIs as punitive rather than developmental tools
How PLC Group Malaysia Can Help
We offer:
- Contractor HSE KPI System Reviews & Design
- HSE Performance Dashboards for site and corporate levels
- Training for both operators and contractors on KPI understanding, reporting, and response
- Audits to assess effectiveness of existing HSE metrics
📊 Turn your numbers into safety results.
Schedule a consultation with PLC Group Malaysia to improve how you measure—and manage—contractor HSE performance.
