Q1. What are KPIs for employees?

A Key Performance Indicator is a measurable value that demonstrates how effectively a

company is achieving key business objectives. Organizations use KPIs at multiple levels to
evaluate their success at reaching targets. High-level KPIs may focus on the overall performance
of the business, while low-level KPIs may focus on processes in unit levels such as sales,
marketing, HR, support, and others. Some of the KPI’s for employees are given below.
1. Efficiency – A top notch indicator to rate the performance of an employee. If an
employee is not efficient in terms of skill, knowledge, and ability then he/she will not
bring any profit for the organization.
2. Teamwork – Collaboration and teamwork is essential to attain individual objective, unit
objective and organizational objective at the same time. Employee who is a good team
member can certainly add values to the company and helps to earn reputation.
3. Problem Solving Capability – Professional level sometimes requires critical thinking to
solve induced problems. A good employee can identify barriers that hinder organizational
growth and on top of that solve problems with efficiency and accuracy.
4. Timeliness – Punctuality is the key to success for anyone. An employee who completes
the assigned task within the time frame boost up the proficiency level of an organization
and he/she never keep tasks pending for the unpredictable future.
5. Adaptability- Organizational environment change is imminent. The situation is never
following a flat line throughout the timeline. An employee who is adaptive to any
situation certainly can produce the best possible outcome and can motivate others to
accept the change to work under any situation.
Q2. What are the KPIs for performance management?
Ans:
First, your organization needs to choose KPIs that measure the appropriate activity for each area
of the business.
For example, net profit is a standard KPI for an organization's financial performance. It's easy
enough to calculate (total revenue minus total expenses), and you know that the higher it is, the
better the company is performing.
Others may be harder to calculate. A customer satisfaction KPI, for example, may require
regular, carefully constructed customer surveys to build the right amount of data. You'd then
have to decide what sort of customer satisfaction score represents the benchmark you want to
achieve.

Setting SMART KPIs

Whatever the nature of your KPIs, you need to make sure that they're SMART. This stands for:
 Specific: be clear about what each KPI will measure, and why it's important.
 Measurable: the KPI must be measurable to a defined standard.
 Achievable: you must be able to deliver on the KPI.
 Relevant: your KPI must measure something that matters and improves performance.
 Time-Bound: it's achievable within an agreed time frame.

Set Goals
Manage KPIs
Track Team Performance

Delivery Rate
Open Rate
Response Rate
Conversion Rate
ROI
Q3. How do you use KPI to measure employee performance?
Ans:
 Identify the business goals. This is the high-level goals of the business or a specific site.
A good Maintenance and Reliability program should be based on the needs of the
business. The needs can be defined from the goals of the site. These goals may be Cost
per Unit of Production, Up time, etc. Regardless to what is used, the goals must be
identified.
 Identify what the department needs to achieve to support the business goals. With
the business goals established, brainstorm what specifically the maintenance department
must do to support these goals. If the business is focused on Overall Equipment
Effectiveness, the appropriate maintenance KPI may be availability.  Take the time to
identify the few specific KPIs that will translate into the business goals.  It is important to
ensure that a balancing KPI is identified for each KPI to ensure the right behaviors are
embedded.
 Establish the performance goals. Lastly, with the KPIs determined, the maintenance
department needs to determine the targets for the KPIs that will drive the business goals.
For example, if a site needs to achieve 70% OEE, 70% Availability will not support the
business, a higher target of 80% Availability may be needed for the business to achieve
its goal of 70% OEE (Overall Equipment Effectiveness).

Best way to measure:

1. Reviews participation rate
2. HR process efficiency
3. Quantity of feedback exchanges
4. Feedback quality
5. eNPS score (Employee Net promoter score)
Q4. What are the 5 key performance indicators?
1 – Revenue per client/member (RPC)
The most common, and probably the easiest KPI to track is Revenue Per Client – a measure of
productivity. A simple calculation (annual revenue divided by number of clients).
For example, you generate $300,000 annually and you have 300 clients, then your RPC is
$1,000, roughly the industry average. (That’s right. The average client is worth $1,000 per year!)
Besides access to classes and/or membership dues, what else can you make available for sale to
your clients? What do they want? What would be a complementary product or service that would
enhance enjoyment without seeming too aggressive?
2 – Average Class Attendance (ACA)
Another popular KPI, not surprisingly, is Average Class Attendance (ACA). If classes are full or
nearly so, it indicates a highly desired class, and theoretically, a profitable class.
At the other end of the spectrum, some classes are not quite as full. It’s incumbent on the owner
to find out why, often an elusive answer. It’s key to know the difference between:
 A bad class
 A bad instructor
 A bad day or time
3 – Client Retention Rate (CRR)
Retention - the percentage of clients you retain - is critical to long-term profitability. In many
ways, it’s the most important KPI of all because it measures how well you’re delivering on your
brand promise.
Typical CRR for the studio industry is roughly 72%. So, what do you do to increase that
number?
Focus on marketing strategies, tactics, messaging, time, and expenditure along with ongoing
sales efforts. Retain your clients by:
 Deliver what you promised.
 Make sure those who work in your studio (whether employee or independent contractor)
have embraced your vision.
 Understand why clients are leaving. Do exit interviews. Let them know you value their
opinion.
4 – Profit Margin (PM)
If it costs you more to generate the revenue than the revenue you generate – that’s a negative PM
and your business is not long for this world. That is, unless you’re incredibly well financed and
have deep pockets.
If not, turn your attention to where and how you’re spending your money. Where is your money
going? Which expenses are out of control? Which are necessary expenditures, and which are
not? Which expenses help generate revenue?
And don’t overlook the revenue side of the coin. Are you charging enough for this or for that?
Does your pricing model need revision? Are your programs stale?
5 – Average Daily Attendance (ADA)
A simple KPI but one that can get blurry. Is your studio full of Class Passers who pay next to
nothing and have no intention of ever joining your studio or paying full price for a class? Good
for Average Daily Attendance, terrible for-Profit Margin or Client Retention Rate.
There are lots of methods to achieve your ADA goal. Give away free promo items, run special
promotions, bring a friend, special this or that are all ideas. But be careful. While there’s validity
to ADA as a marketing strategy, make sure there’s a sales acquisition strategy to support it.
Q5. How do you calculate KPI for performance management for both employees and
business?
Ans:
A KPI is a way to measure employee performance in the workplace. For example, if you want to
measure how a sales employee is performing you can easily do evaluating their total sales and
comparing it to their salary and expenses.
Here are some of the best universal KPIs for employees we’ve come across:
1. Revenue per employee
= Revenue/number of employees
This is the most basic indicator of what each employee brings in. It’s useful for ensuring your
workforce aren’t costing you more than they’re making you. It’s often used to gauge the
profitability of companies.
2. Profit per employee
= Total profit/number of employees
Like the above, this employee performance KPI breaks down raw profitability (free from
expenses), which may be useful for companies with remote or freelance workers who don’t incur
the same expenses as in-house employees.
3. Employee billable percentage
= (Total weekly billable hours logged/total weekly hours logged) x 100
Also known as a "utilization rate", this KPI shows you the overall ratio of directly profitable
work to internal cost each employee engages in. Different companies have very different stances
on the value relationship between “billable” and “non-billable” time, and we’re of the opinion
they are equally important. However, you view it, you need to see how much time your team
spends on non-billable time to maintain a healthy balance.
4. Average task completion rate
= Total time to complete the same task (across set timeframe)/number of times performed
Again, this should be taken as a rough guide to inform the overall efficiency of your team. It’s
useful for understanding how long different phases of a project usually take your employees, so
you can improve budget estimates and price fairly for your work.
5. Overtime per employee
= Total hours’ overtime/number of employees
The average overtime metric can be interpreted in a whole of different ways. Some companies
use it to understand the health of their employees – both in terms of engagement and physical
wellbeing. But it shouldn’t be taken as an indicator of employee dedication, since “presentism”
alone doesn’t translate to “quality of work” or “enthusiasm”. If your staff are constantly
performing overtime, you might need to increase your workforce. In the interests of your
company culture – whether you embrace or reject overtime – it’s a good idea to keep an eye on
it.
6. Employee capacity
= weekly capacity - total hours logged
Employee capacity is a great measure of productive performance. Like overtime, it shows you
who is close to burnout and who has room to take on a little more work. It’s super helpful for
distributing work evenly across your team and understanding who needs extra support.

For Business:
Making your KPIs actionable is a five-step process:
 Review business objectives.
 Analyze your current performance.
 Set short and long term KPI targets.
 Review targets with your team.
 Review progress and readjust.