Why experts warn against assessing your employees' KPIs during performance reviews

Karin Iten, Fsp Business, 10 Apr. 2015

Tags: performance reviews, employee performance, measuring employee performance, performance appraisals, key performance indicators, kpis, employee performance

You've set Key Performance Indicators (KPIs) so you can monitor how well your employees are performing their roles.

And naturally, with first quarter performance reviews underway, you've dug them out of your files to determine if your employee's performance is up to scratch or if you need to begin the performance management process.

But are your employee appraisals really the best place to discuss this?

Performance Measurement Specialist, Stacey Barr says they're not.

Here's why...

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The danger of using KPIs in employee performance appraisals explained


While KPIs are there to measure an individual's performance, you need to remember that you set them up to ensure your employees help your organisation meet your company objectives.
And that's where using them during individual performance reviews fail.
You see, says Barr, the problems with using KPIs during performance appraisals is that it encourages people to:Measure employee performance using KPIs is a BIG mistake says performance specialist
  • 'Fudge the figures so no-one gets an accurate or objective view of true performance.
  • Compete rather than collaborate with colleagues for fear of being the one to miss a personal target for the greater good
  • Suffer from too little feedback too late to prevent performance problems
  • Focus on doing tasks more productively even if they don't produce meaningful results
  • And count easy widgets versus measuring meaningful results.'
You can see where the problem lies, can't you?
In essence doing this evokes your employee's natural instinct for self-preservation. And in so doing, it actually erodes organisational performance.
Instead of working towards a common goal, you're now measuring people against each other.  
That's why Barr believe 'you'll give organisational performance the biggest boost if you turn your attentions to giving everyone the best opportunities to work together to make a valuable difference.'
So reconsider your company's stance on addressing KPIs during performance reviews. 
Instead, use them during ongoing and regular feedback sessions to check your employees are on track for achieving the goals that add a valuable (and profitable) difference to your company. Use them to give your employees the best chance to perform well, not as a means to judge their performance.
You'll soon see the results your company has been so desperate to achieve. 

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