Employee KPI is a type of performance measurement that shows the employer how well the organization has been performing. The managers can figure out the direction they are taking towards the achievement of the strategic goals. By evaluating the employees, managers understand the skills or training the employees need to improve their performance.
The employee KPI may differ depending on the organization, the services you offer to the client and the quality of work. The area you choose to use as the performance indicator should relate to the daily activity of the employee. Here are some examples of employee KPI:
- Profits- This goes without saying. Profits made by the company in a particular duration is an employee KPI. As a manager, it is better to analyze the profit monthly to assist you to determine whether your employee is working towards the company objectives. Keep in mind to look at both gross and net profit.
- Accomplishments of company's goals- meeting of targets are the key aspect to measuring the performance of employees. When evaluating, employees weigh whether the employee has met his goals if so, the employee is highly productive. Employees who respond to their goals aids the company to achieve the overall strategic goal.
- The cost and quantity of goods sold- keep track of the products sold by your business. The record you obtain will help you compare your performance among the competitors.
- Sales sold per region- when analyzing sales sold per region, you may find that some of the areas sell more than others. The sales help takes advice from the performing areas and gives the underperforming employees.
- Retention and satisfaction of customers- the rate at which you retain you a customer and how often they return to make another purchase is an indicator that they are satisfied. Customer satisfaction score is also an indicator of performance.
- Employee turnover rate- employee will quit jobs if they are not happy or compensated fairly. This quitting will reduce the performance of the organization hence not achieving desired goals.
- The number of customers- just like the satisfaction of clients, the number of customers lost or gained in a duration can serve as an indicator of performance.
- Complaints- the complaints received in an organization is an employee KPI. Minimum charges show employee work is good, while more complaints mean you are underperforming as a company.
- Customer Referral- If you get customer referrals, that means the customers like your organization's services. Referrals are part of employee KPI.
- Time management- The duration taken to perform a particular task is an employee KPI. Also, how the staff schedules his daily tasks.