The importance of identifying core KPIs for every employee

Key Performance Indicators, or KPIs, are measurable goals (usually numbers) that employees must achieve. You can set KPIs during an annual review, and then judge successful performance based on whether an employee has achieved them. They’re a way of adding structure to performance reviews because they are a clear target to hit or exceed.  

Why are KPIs important? 

Goals that are nebulous can be difficult to reach. For example, a goal such as: “Improve sales” doesn’t mean too much. Improve sales how? When will the employee know they have successfully improved? But a goal such as: “Improve sales by 15 percent” gives an employee parameters to know whether or not they have achieved their goal.  

Build employee morale 

KPIs can build employee morale because they wipe out uncertainty. When employees know they are doing their job and accomplishing their goals, it can be incredibly motivating. If they aren’t reaching their goals, a KPI let’s them know how much further they need to go and can be a pausing point for them to reset and refocus their technique. Nothing is worse for motivated employees than not knowing what is expected of them, and KPIs help address that.  

Support business objectives 

Employees are the fuel that keeps your business going. Setting KPIs around key business objectives helps everyone stay focused on the “big picture.” All employees can feel good that they are an integral part of helping the company succeed, and they have a clear understanding of what they need to do. And you can hone your focus toward achieving your objectives.  

Simplify evaluation 

Ever stress about how to evaluate employee performance during a review? This can be an awkward time for a manager. But a KPI helps simplify the process through numbers. With clear goals, you can evaluate how an employee is performing, and if necessary, offer advice for how to improve.  

Help employee grow 

Targets give employees something to work towards, helping them shape their skills, grow and advance. KPIs are critical to supporting your workers in personal growth, rather than stagnating through vague goals, confusing reviews and unfocused energy.  

Need to staff up? 

As you develop your management and review strategy, you may find yourself ready to add to your workforce. If plans for growth are in your company’s future, it can help to work with a staffing agency to add employees. And in the Atlanta area, contact Happy Faces Personnel Group. We’ll work with you to understand your goals and help you determine a staffing plan that fits.  


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