How to set KPI’s for your staff

After you have created a job description for a staff member take a look down the list of tasks that the staff member is charged with. There will be some in here that are “make or break” functions. These are the ones that will become their Key Performance Indicators.

They often revolve around the three criteria of Time, Cost and Quality.

A Key Performance indicator must be absolutely measurable so a staff member knows exactly if they have met their base requirements for the month.

These are the serious results based measures. To help you determine if the measure is a true KPI ask yourself; Ïf the employee did not achieve this on a consistent basis would that render them unsuitable for the role” (ie non-performance is a sackable offence).

They should not be formulated by the business owner and “imposed” on the employee because it is too easy for the employee to then hold the attitude that the goal was unreasonable in the first place. Rather the employee should be integral to the discussion.

Generally a role has only a few Key Performance Indicators – less than 5.

Examples of KPI’s could include

For a  sales person Sales invoiced of $ xxx for each calendar month
For a receptionist Better than 80% of the client feed back forms rate “Meet & Greet” at 4 or 5 on our scale of 1-5
For a bookkeeper Present the directors with a set of financial reports for the preceding month on the 18th of every month.
For a bookkeeper Wages to be paid 100% correct 100% of the time.
For an office manager Marketing activities are carried out to the schedule on the marketing Plan each month.

The KPI’s should be reviewed at staff appraisal meetings, but they should be well known by the employee and the business owner so that if they are being missed more than once action is taken to support the employee to deliver them as soon as possible.

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