Regularly accessing employee performance can help you better understand areas each member of your team needs to work on improving and helps the company increase the bottom line over time. Performance management is key and KPIs can help.

Regularly making use of a KPI, an acronym for Key Performance Indicator, can be of great help in employee performance appraisal.

What is a KPI?

What are the types of KPIs?

The benefits of having a KPI for each team and employees

How do you design a KPI?



The KPI is a tool that is used to measure the performance of various goals and objectives in an organization. It can be used to assess an organization’s performance in sales, marketing, client/customer satisfaction, employee performance, etc.

With the use of a KPI for your employees, you can be able to draft out indicators for each of your employees, point out areas they need to improve, and also help them learn new things about themselves. Doing this not only helps your employees improve themselves but results in the overall performance of your company.

The best time to administer a KPI is before resumption


Of course, there are a million and one KPI types but for a small growing business, you may want to start with the ones that will help you meet your goals.

Quantitative indicators

This is by far the easiest of KPIs, it is based directly on the goals, objectives, and financial targets of the company they can be based on growth in sales, lifetime value of both employee and customers, amount of resolved tickets, cost of customer acquisition, monthly recurring revenue, service response time.

Each team or individual employee in the company has KPIs, the finance team, service team, customer service team, HR team, managers, telemarketers, etc.

Qualitative indicators

These KPIs cannot be quantifiable and assesses employees based on subjective criteria that cannot be precisely measured, it is difficult for those responsible for employee performance management like the CEO, manager, HR, or even an outsourced human resources services firm, to be able to carry this out if they are not active in the everyday activities of the organization or even set a process of proper monitoring and understanding of the day to day running of the company and customers.

Some examples of qualitative KPIs are Behavioral and leadership competencies like the way they communicate and use their initiative. Even how they dress.



 Improves Employee Productivity

One of the most common benefits of employee performance management through KPI is how it improves employee productivity, thus improving a business’ profit. Employees are more inclined to work more effectively to boost their KPI scores, when they know the employer regularly assesses their performance and it is best if the KPI document is available to both the employer and the employee. Thus, when your employee work more effectively, that in turn improves your company’s profit. Consider a telesales agent tasked with 75 calls daily according to the KPI document specifically assigned. If she used to make as many calls as she can before, say from 9:00 am – 5:00 pm, she would probably just tire herself out which would not put her in a good position to speak to a potential client. The KPI would assist her self-assess, practice, take breaks then go again when she is re-energized.


Provides An Improved Communication Between The Employer And Each Of His Employees

A KPI can also help improve communication between an employee and his employees. With a KPI, an employer and employee can both talk about what to work on and what to improve. If the employee feels he cannot meet up to a certain indicator on the KPI document, he could ask for an adjustment. Take the telesales agent for example. If his employer tasks him with 100 calls daily, he could explain to his employer why he would not be able to deliver 100 calls daily. Perhaps the employer would understand and reduce the calls to 75.

Moreover, this could also provide an opportunity for the employer to communicate more with each of his employees and understand each of their abilities.

Help Evaluate Each Employee’s Ability

As an employer can communicate more with his employees and learn about their abilities through a KPI, he would be able to evaluate them accordingly. With his evaluation, he would be able to identify ways to encourage proactive employees either with a promotion or with a raise. As for those who are not as productive, the employer could look into ways to help them improve through training. Moreover, for big companies, this could help identify employees who are not qualified to be in the job in the first place.



According to Z-Technology in a blog article,  doing the following can help design actionable and workable KPIs

  1. Tie the KPI to the Business Goal of the organization
  2. Aim to make the KPI Measurable.
  3. For Realistic KPIs, Use Ratios and Ranges
  4. Shun the use of Hollow Metrics
  5. Use reasonable Measurements.
  6. Quantitative and Qualitative KPIs are best to use

At Asksus-ng Business Support Services, we help interested organizations and small businesses set KPIs and also carry out annual, bi-annual, or quarterly staff performance management assessments with the organization’s goals and objectives in mind.

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