Employee performance evaluation

The company’s employees understand that achieving key performance indicators is a direct path to bonuses and other additional rewards. Therefore, the cdn testing is an important part of ensuring business success tries to improve results, focusing on tasks on which the success of the business depends.

Clear KPIs help employees understand what needs to be done to achieve the goal by the end of the reporting period. That is, the staff can plan their actions wisely.

KPI indicators – what are they? Indicators depend on the mobile database area. Initially, KPIs were used only in sales. But most indicators in any business will be related to sales and profits in one way or another. Each indicator has a weight – this is a value according to the degree of importance for the company. The sum of all indicator weights is 100%.

Indicators can be related to a product, employees or clients. KPIs can be calculated for sales, promotion in social networks, user satisfaction, and so on. That is, there is no single list of key performance indicators. They are calculated by experts for the needs of a particular business. It is important that the indicators are balanced and fully reflect the company’s work.

So, we have explained what KPI is in simple terms. Now let’s talk about what the system takes into account. In marketing and sales, this is:

• The quality and quantity of the result – for example, how many posts were posted on social networks and which of them received more reactions.
• The time and resources required to complete a task. For example, the cost of one cake or the amount of time it takes to deliver a roll of fabric.
• Productivity is the result per unit of time. For example, how many articles an editor can check in one month or how many requests are processed by support staff in one day.
• Efficiency is the result divided by a unit of resource. For example, what income the money spent brought to the enterprise.

Let’s assume that we are talking about a confectionery. Then it makes sense to make up the product’s KPI from the volume of goods sold, the number of transactions for a certain period, sales conversion and other data.

Using the KPI system has the following advantages:

• Helps in objectively assessing results. KPIs are an indicator of employee efficiency, expressed in digital values. The assessment system helps to identify the results of the team’s work, determine the results of a specific event or evaluate the company’s activities as a whole.
• Helps to identify problems and find growth points. If the KPI is achieved within the established timeframe, it means the company is moving along the right trajectory. If the indicator is not achieved, you need to look for the reason. For example, in marketing, it is important to constantly monitor KPI performance indicators in order to stop an advertising campaign if necessary and not waste the budget.
• Helps in planning and decision-making. Constant monitoring of KPIs helps to create a work plan for different departments, a general strategy for product development. With the help of indicators, you can forecast profits and expenses, make a decision on the development and implementation of new products.

But there are also disadvantages:

• There may be difficulties in developing and implementing a KPI system. If the company is large, it may take a year or even several years. If the company is small, the KPI system can be developed quite quickly, in a few weeks.
• Tracking KPI requires additional investments. For example, purchasing special tools – most of them are paid. Although there are also free tools where you can build graphs and make calculations.
• KPIs can have a negative impact on the work of employees. If KPIs are unachievable or greatly exceeded, employees will not even try to achieve them. On the contrary, if KPIs are underestimated, the team will try less, since they will achieve the goal in a short time. In addition, if everyone is focused exclusively on their KPIs, team members will not help each other solve problems. They may begin to chase the goal of achieving a high KPI to the detriment of others. For example, a sales manager may promise a client to complete a project in a short time, and then the whole team will have to work overtime.

In general, if the system is built correctly, then it will be a plus for the company’s work.

There are two types of key performance indicators:

• Productivity. Expressed in quantity. For example, it is necessary to sell 100 new products, launch two advertising campaigns.
• Result. Measures specific benefits for business. For example, increasing sales conversion by 20%, reducing the outflow of visitors from the site by 30%, and so on.