Two reasons you should work with your employees to develop their KPIs

Simangele Mzizi, Fsp Business, 23 Jun. 2014

Tags: kpis, key performance areas, developing kpis

The two big mistakes that companies make when it comes to KPIs are: Setting too many KPIs for employees as well as not working with employees to develop KPIs.

For the purposes of this article we’ll focus on why you should work with your employees to develop their KPIs.

Here are two good reasons why you shouldn’t overlook this.

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If you think it’s unnecessary to work with employees when developing KPIs these two reasons will sway you

#1: Working with your employees to develop their KPIs will give them job satisfaction

The founder of Sales Central, Grant Hyman, says it’s absolutely critical for managers to develop the KPIs in consultation with the employee.

He says: “You talk about two things. The first is what the person is employed for; the second is what’s going to give them satisfaction that’ll ensure they stay loyal and motivated.”

#2: If you work with your employees to develop their KPIs, they’ll work harder

Jessica Schebesta, a director of Frank Team which helps young entrepreneurs set up businesses, shares Hyman’s sentiments.

She says it’s critical to work with your employees to develop KPIs.

“If they [employees] feel it’s too far out of reach and ridiculous, they’re not going to try. But if you have a strategy in place and they know how to strive for it, they’ll push,” says Schebesta.

It’s simple; you mustn’t dictate KPIs to your employees. Rather, work with them so they feel like they’re part of the process. This will also help ensure you set realistic and achievable KPIs that have direct relevance to your company’s main goals and your employees’ motivations.

Now that you know why you should work with your employees to develop their KPIs, don’t forget this one thing…

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KPIs need constant monitoring

If, for example you only monitor KPIs quarterly, it becomes like an exam, says Hyman.

“It becomes an extra to the business and that’s where the problems arise because they can be extraneous to the employee doing the job.”

This means your employees will just see their KPIs as a burden and something they’re being checked on.

We hope these compelling reasons have convinced you of how important it is to work with your employees when you develop their KPIs.

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