Setting individual KPIs for each of your employees is probably one of the most important things you can do in your business. But it doesn’t end there – there’s so much more to KPIs with just setting them!
KPIs are absolutely essential to driving business results, improving employee satisfaction and reducing employee turnover. All of these are pretty important, right? Obviously should be top priorities. After all, you want your team to be motivated and to feel empowered to make a real difference in their career and in their workplace, for the wider world.
Without clear, concise and constructive KPIs, employees can be left feeling a lack of purpose and direction not just within company, but also in their career journey. You want to steer away from this at all costs!
As a manager or business owner, it is your responsibility to ensure you have an effective KPI system for employees. But how exactly do you do it?
My top 4 tips for setting individual KPIs for your team:
- Set stretch KPIs. If your employee wants to move up in the business, their KPIs should be stretch i.e. difficult to achieve, but it should also be made clear that just passing isn’t enough – exceeding is where you need them to be.
- Think about what needs to be done. What does the company need to achieve in order to get it here you want it to go, and how will the input of individuals affect that? For example, if you want an extra $100,000 in revenue from your team, you then need to work back from that number. How many calls do they do now to get that number? How many extra would they make? Emails to send out? Whatever goal is the KPI or action the staff member has to take must to correspond accordingly.
- Performance measurement and follow up is essential. How do you measure/track performance and how do you feed it back to people? Performance metrics should be visible and clear where everyone can see them and know where they sit against others of the same position. It can either be a great motivator or a real kick in the face as to where they think their performance is at.
- Seek feedback from your employee on what their goals are and what they want to achieve. If that’s a promotion or a sideways step – their KPIs need to align with both what the organisation needs and where they want to go, what they want to be.
Would you like to learn how to create a culture of high-performance and authenticity, and how you can best support, engage and empower your people to succeed? Back for its fifth year, the Authentic Leadership Summit 2020 teaches you how to lead with greater purpose in the contemporary business climate. Early bird rates end in 7 days, so now is the time to get your tickets. Register here.