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How to Set KPI for Staff

KPI

Let's say you have a great team in your company, but you've noticed a few inconsistencies in their work. Some are frequently late and you want them to use a new time tracking software. Others are not putting in all their effort. How do you get them to work harder?

Utilising key performance indicators (KPI) is a method to measure and evaluate your team. KPI's develop company goals and get your team on track towards improvement. Some KPI's are easy to identify, such as tracking revenue, customer attainment, expenses, and so on. Other KPI's require creativity to measure, like staff engagement and satisfaction in the workplace. 

KPI's can be used at all company levels, from overarching strategic goals to staff development. The structure of a KPI should involve the long-term goal as well as smaller target goals to track progress over time. 

KPI's operate as a way to communicate goals. They adhere to purpose and objective, and, if done well, help to limit confusion and conflict. To be effective, KPIs should be clear and structured. This helps staff understand what their employer expects of them.

So, how does one structure a set of strong KPI's for staff? 

There are many elements to strong KPI's. However a few traits will help the KPI stand strong. Some of these components include: 

Simplicity is Key 

KPI's should be easy to understand and measure. A KPI should prompt an answer or decision. It shouldn't spur more questions. A simple, straightforward KPI makes it easier for staff to incorporate team goals into their work. A clear objective helps employees identify how to adjust their work to influence outcome and achieve goals.

Business Objective

It Should Align with the Work 

This might be obvious, but it's overlooked. Strategic and operational goals should align with the overall business strategy. For example, a customer-based company should have customer retention and satisfaction as part of its mission. KPI's should align with overall objectives. This leads to progress towards organisation goals.

Be S.M.A.R.T. 

A solid framework to follow when structuring KPI's is the S.M.A.R.T. criteria. This acronym is a baseline used by many businesses to help write out goals and KPI's. S.M.A.R.T. is a way to ensure that goals are purposeful, relevant, and ultimately successful. 

Specific – is the objective specific? 

Measureable – how will you measure progress towards the goal? 

Attainable - Is the goal realistic based on means, company structure, and so on? 

Relevant - Is the goal relevant to the organisational purpose and mission? 

Time – what is the time frame to achieve the goal? 

S.M.A.R.T. goals utilise this framework to create goals that will work for any situation. Each factor is important and shouldn't be overlooked. Having S.M.A.R.T. goals keeps you on track with your company's mission. 

Execute with Efficiency

Once the vision has been quantified and KPI's established, it's critical to execute the goals. Staff will be the drivers behind KPIs and achievement of goals. They have the ability to make the changes needed for success. However, they need a strong authority figure to keep them focused.

Time Management

Get Your Team Excited About KPI's

If you are changing the workplace, employees need to understand what those changes are going to be. “Improving customer service” isn’t as clear as deciding to “create an engaging social media platform to respond to customer service online in a three-hour timeframe.” One leaves room for interpretation. The other details an achievable goal.

More important than the “what” of KPI’s, is the “why” behind each. Creating long-term vision with short-term indicators is all well and good. However, this will be wishful thinking if staff does not understand why those changes are important. 

Why does the company want to use new time and attendance software? Is it because staff will be reprimanded for tardiness or because the company has identifying ways to be more efficient with staff time? One incites panic. The other specifies the improvement of the business.

How the new KPI's are introduced and first implemented will go a long way towards the ultimate success. Finding an engaging way to present new ideas will get staff excited for the opportunity for the changes. A boring meeting isn't going to cut it. If you're not excited about the new goals, how will your team react? 

Dive in: Put All Your Effort into Great KPI's

KPI's have helped businesses across Australia, from Melbourne to Sydney, develop effective strategies for business growth. KPI's are as good as their users want them to be.

Every aspect of a KPI is important in the final goal of achieving peak performance. The more you care about your company goals, the more likely you'll see improvement in your company. Utilising everything from staff communication to S.M.A.R.T. goals will be critical to success. 

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