These Performance Management KPIs Will Help You Outperform Everyone!

Employee performance appraisal is easily one of the most dreaded sessions professionals have to go through. Not knowing what kind of review you are going to get is very stressful. And if you get a poor employee appraisal result, then it could ruin your weekend.

However, employee appraisal and performance management processes is not something to be feared. In fact, you can make it work to your advantage. How? By understanding how your business is assessing your performance and more specifically, its performance management KPIs.

Why Do Employee KPIs Matter?

Whenever your manager is looking towards filing a team performance management report, they will be using KPIs. The specific ones they use will be subject to your industry. However, everyone uses KPIs and in fact, this is how executives are going to make decisions about their workforce management. Obviously, that is not up to a single employee but they can boost their own performance output and grow their careers.

This is in fact, easier than you think particularly if you are willing to work with your managers. They will appreciate you asking for opportunities to grow and will favour subordinates seeking feedback loops. This is also a great way to gear up for deputy roles like assistant managers since it creates a metric-based performance understanding. Additionally, you can learn about employee appraisal systems to work with in mid-level roles. So, getting to know performance metrics is a great way to jumpstart and expand your career options.

Even if you are not interested in moving up in the same organization, using employee appraisal helps a lot in giving your career a boost. And for managers, creating a strong rapport with employees while keeping the employee experience factor in mind creates a great foundation for growth and success.

Read on to find out how you can make complex employee KPIs like employee productivity index (EPI), Revenue per employee and profit per FTE to your advantage!

Five Performance Management KPIs All HRs Use and How to Use the Advantageously

1.Employee Productivity Index

The employee productivity index is the grand metric every performance management report made by HRs will include. It estimates the total numeric output of every employee, team or department. The first thing an HR does to do this is explain how the business is looking at productivity. For example, if you are a data analyst, then your EPI could indicate the number of databases you have structured or the number of key insights derived. For customer support executive, this boils down to number of calls handled vs number of successful case closures.

Understanding your EPI factor will help in creating a comprehensive performance management  process. This is important because it enables you to take charge of your performance rather than wait for the month or quarter end to understand how you performed. For example, high intensity jobs like digital marketing or other marketing related activities, this helps create a dynamic operation process.

This is also true for industries where the margin of error is very low. Jobs like software development or IT maintenance require tasks to close without a high-performance margin. So, understanding how your EPI will affect your overall employee appraisal is a good way to ensure you succeed. Check out this list of employee performance metrics by Indeed popularly used by managers across the world.

2.Profit per FTE

FTE stands for full-time equivalent in performance management systems. This is the sum total measure of work value created for a full day’s or week’s worth of work. The exact metric differs from industry to industry but mostly managers use hours. Quite often, they will consider profit to FTE based on the productivity index for each employee and then define it on the vitality curve. This helps them define who is a key resource asset and who needs incentives to improve performance. Getting to know both profit to FTE and the vitality curve for representing it enables employees to chart up their own performance.

Moreover, understanding how your company is looking at its profit per FTE margins will help create a better understanding of how to develop your productivity. Mostly, adopting smarter practices for better aligning with business standards and market trends. Further, this helps in projecting weekly and monthly goals with a direct line into how your performance translates to profit. So, when it is time to do an employee appraisal you can be standing on par with your Human Resource about how you performed.

3.Error Rate / Product Defect Rate

This particular metric is one any professional can apply for their performance management estimate. The error rate and product defect rate are factors for understanding product viability and production times. It applies to software developers and coders just as much as industrial workers and understanding areas of redundancy helps improve performance. Mostly, this process is part of the supervisor or trainer’s approach towards improving productivity. But employees have the option of doing it themselves and improving their performance.

One of the best ways to use the error rate is to divide the types of errors categorically. Then further segmenting the errors to clear them deliberately helps professionals vastly improve their performance. This naturally reflects in employee KPIs and often paves the way to a rapid increase in career growth options.

4.Learning and Development Participation & Completion Rates

Most companies tend to enable employees to work up their skills as a natural part of their performance management and upgrade process. This is process showcases who is the next person worthy of promotion to HR managers. So, willingly taking up learning courses and participating in development programs is a good way to showcase budding talent. Most HR experts will quickly recognize high performing professionals and give them a boost up if they translate their learning into their working process.

Creating successive career opportunities requires taking an active part in development programs, seminars and events. In certain professional domains like medicine and engineering, this is a mandatory process and also adds certain peer value relevance to a professional’s work portfolio.

5.Net Promoter Score

In high-volume/value sales jobs or project-based platforms, NPS or Net Promoter Score is an important employee appraisal metric. Usually measured on a scale of 1 to 10, it is an indicator of how satisfied customers are with that employee’s service. If you want to actualize your personalized service value, using the NPS to boost your career options is a good choice. Aggregated NPS metrics are also a great way to promote free agents or independent service platforms both online and offline. This is why, understanding your NPS’ performance measurement standards is a good way to get good scores and excel in your performance showcase quarter-on-quarter. Find out more on the Net Promoter Score (NPS) on this Hubspot blog.

How Can Your Next HR Employee Appraisal Turn Out for the Best?

HRM metrics indicate toward employee appraisal and performance quality standards and help managers bring up the top performers. Understanding how things work towards delivering value to your company will help you create a better work proficiency standard. This is not only useful for job growth but also for career promotion at large. Whether you want to move to another company or stay with one, using a metric-based approach showcases that you are thorough and trustworthy. For more insights on HR topics for both managers and employees, follow our blog and subscribe to our newsletter here.