Today in business there are tools for assessing the work of subordinates - key performance indicators (KPIs of employees). Thanks to this system, you can determine the productivity of each employee and increase the motivation of the entire team.
As a result, subordinates will:
- fulfill all orders on time;
- communicate politely with clients;
- control all processes;
- carefully fill out the documents;
- make high sales.
All employees who have increased their productivity can be paid a salary increase or a bonus. This will increase motivation. Learn how to use employee KPIs in this article.
Why are employee KPIs needed?
The KPI tool is used to measure the performance of each employee and all departments in the company. The following indicators can be assessed:
- the number of received calls;
- completed orders;
- number of sales;
- total profit.
To implement KPIs, it is necessary to set clear conditions for employees: a sales plan, servicing customer requests, completed orders for a specific period. At the end of the appointed time, you check the volume of work performed, assess the level of productivity of each subordinate.
In general, key performance indicators are tied to the overall development plan and goals of the company. Thanks to KPIs, the productivity of employees, the quality of service and the standards of the company increases; customer requests are satisfied, and more positive customer feedback appear.
How to use employee KPIs
You can set employee KPIs in any business area. In a workshop, service center, store, warehouse, the following conditions are used to increase performance indicators:
- for sellers - an increase in sales, an increase in the average check, the provision of additional services, an increase in sales of related products;
- for administrators taking orders - increasing the speed of customer service, raising the level of service standards, selling additional products;
- for foremen - an increase in the number of processed orders, an increase in the speed of work, a decrease in overdue orders;
- for storekeepers - increasing the speed of receiving goods, collecting orders, reducing the number of shortages, an order in the address storage system of goods, reducing claims for incorrect order picking;
- for department managers - department development plan, holding meetings, control of work schedule, reports.
All tasks for employees should be clear, precise, quantifiable, and limited in time. For example, each master of the service center processes 30 orders per month and receives 10 positive reviews from customers. At the end of the month, you count the number of completed orders, feedback, pay bonuses to those employees who have fulfilled and overfulfilled the plan.
Instructions for implementing employee KPIs
Some businessmen implement employee KPIs with the help of specialist consultants. You can independently figure out this issue and, without outside help, adjust all the performance indicators of subordinates in your company. The following instructions will help you with this:
- Determine the goals of the enterprise: increasing profits, the number of customers, orders, improving the quality of service, correcting errors. Prioritize your goals.
- Define measurable indicators and assign goals to certain employees so that they are accountable for the results of this work.
- Set the amount of bonuses, as well as the conditions under which they are accrued. The amount of the increase in salary should be consistent with the complexity and significance of the goal. For example, if a subordinate has fulfilled only half of the conditions, then he can count on 50% of the bonus.
- Develop a new system of rewards and motivation. Tell your employees why the motivation system is being introduced, what goals you set and what results you expect. Reward employees who exceed plans and excel.
- Regularly monitor the KPI of employees using the maintenance system. For example, use the cloud-based program Gincore, which is suitable for service centers, workshops, rental services, warehouses, stores and other businesses. In this software, you can set tasks for employees, track the execution of orders, the number of sales, profits, and business indicators. You can also customize the salary of subordinates and the bonus system. This will allow you to implement employee KPIs and increase the productivity of your team.
By working with your employees' KPIs, you will see the real picture of the company, identify problems and be able to work them out. You will also find out which of the employees is late with orders, works poorly, makes mistakes in accounting, and who brings more profit, customers and successfully fulfills orders. However, when working with employee KPIs, certain errors may occur.
The main problems of employee KPIs
Among the common problems of implementing KPIs for employees are the following:
- do not cut wages. KPI assumes the payment of bonuses as an increase in payment for work;
- do not overestimate the indicators very high, because they must be realistic and achievable;
- KPI is introduced for all employees without exception in order to avoid double standards;
- do not analyze those indicators that are not influenced by a particular employee;
- the system of motivation and the accrual of bonuses should be clear;
- do not set many indicators, usually not more than 7 is sufficient;
- implement employee KPIs gradually to increase motivation, not disrupt the work schedule.
Companies that work to improve employee performance are doing well. Their leaders understand the work of the team from the inside, increase productivity and guarantee a decent increase in salary for all subordinates who achieve high results. The program Gincore will help you implement employee KPIs and monitor the situation. In the future, this will increase the efficiency of your business, so register on the site right now.