How To Set KPI For Employees

How to Set Key Performance Indicators for Employees Management

How to Set KPI for Employees: Leveraging the use of key performance indicators to help manage employees can be a useful strategy. It helps you to put certain important metrics in place that when tracked and analyzed. It will provide you important information that will ensure that your business is running properly. Furthermore it can help you spot inefficiencies within your organization.

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how to set kpi for employees
Set up employees” KPIs

You can then put the necessary measures in place to help your business perform better. You have to make certain that your key performance indicators are aligned with your business goals. If they’re not it will just be a huge waste of time because they are not going to add any value to your company when they’ve been achieved.

When you are thinking about setting up key performance indicators for your employees. You can use the S.M.A.R.T model.

It is a 5 part acronym which stands for specific, measurable, attainable, relevant and time bound.


You can get see more detail of each below:


How to Set KPI for Employees



You need to ensure that your key performance indicators that you are planning to achieve are very specific. Setting generalized indicators are not going to give you the real data that you are looking for. An example of a generalized indicator would be you want to improve your employee’s sales performance.

How would you know when you have reach a certain threshold that you’ve achieved your goal? Instead of that you could put an indicator in place which states that you want to improve your employee’s sales performance by 20% in 6 months; which is much better. You can then do the calculations at the end to see if you have achieved that goal.


Make certain that your key performance indicators are measurable. When they are easy to measure it will decrease the level of confusion which can sometimes cause mistakes. Furthermore it will also allow the information to be easily communicated across your team.


As business managers it’s quite natural to get a bit delusional from time to time. We all want to set some big audacious goal which is a good thing. Everything comes with a cost though and this is no exception. It’s great to set big audacious goals but you must also ensure that it’s realistic. You must see to it that your key performance indicators can be attainable.

For example you can set a performance indicator which states that you want your employees to make a certain number of calls a day without any exception. If those certain numbers of calls are high because you want to reach a certain goal. It can have a negative impact on your business; you must know your organization’s current limits. Your employees will come to realize that you’re just another boss who wants to handle them like some automated robots.

This can lead to them leaving your company as well. If they do continue working there they are not going to be happy. Your customers can sometimes know when your customer representatives aren’t happy through the tones of their voice. So be careful how high you set your key performance indicators.


As stated before, your key performance indicators should be relevant towards your goals. If you are setting key performance indicators that are not going to have any huge impact on your company. You are going to waste a lot of valuable time which could’ve been focused somewhere else.

Time bound

Every key performance indicator is going to have a set time of when they’re going to finish so you can then evaluate the information. Ensure that yours can be achieved in the set time frame.

Key performance indicators are very important in any organization. Setting up key performance indicators for your employees can help you track your employee’s performances over a period of time. So you can then evaluate the information to see how efficiently your employees are performing. If your business is performing poorly, you can see to it that you develop a plan to make certain that it improves overtime.



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