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Employee KPIs and Performance Management

Employee KPIs and Performance Management

Businesses in Dubai and all around the UAE are proactively seeking ways to improve productivity and employee efficiency. The market is very competitive and the customer’s expectation are high. In such situation it is crucial to perform well at all touch points to make sure the customer have satisfactory experience. Apart from customer satisfaction, the businesses also need to improve performance in other functions such as production, finance, purchase & supply chain, HR, etc. That is why the employee KPIsand performance management system is critical. Moreover businesses are always seeking ways to prepare themselves for the disruptive events and unprecedented scenarios. The performance management system gets them ready by highlighting their capabilities. Businesses also need to solve the problems and obstacles that their employees are facing on daily bases. By rectifying the most obvious problems, an enterprise or organization can gain significant boost in the employee performance.

Employee KPIs and Performance Management

The performance management system is crucial for any business or organization to achieve its long term goals. These goals are flown from top to bottom and dictates individual, team and department goals which altogether contributes to achieve the organizational goals and objectives. The goals and objectives often interchanged however, they are entirely different. The goals are a stated in broader terms, set for longer period of time and also influenced by the vision and mission of the business. For example the goal of a business could be to become the number 1 service provider in the UAE. That is a goal and it is not quantifiable. However, in order to achieve this goal the objectives are set such as to achieve raise in customer satisfaction by 20%, customer retention by 15% and customer churn rate should be reduced by 30%, and all these goals are quantifiable.

Employee KPIs and Performance Management

Similarly these goals are propagated downwards to the individual employees and the teams. Hence the KPI or Key Performance Indicators are set accordingly. These KPIs will measure the actual and precise amount of growth and progress towards the individual and high-level organizational goals and objectives. The KPIs are a critical part of the performance management.

Importance of Employee KPIs in Improving the Performance

For any business the employees are the greatest asset, it is not only about hiring the right people but it is also about putting them in right places where they can perform well and groom to raise their level of expertise and skills, in order to enhance their performance over the time. That is why it is absolutely necessary for any business to have high performing employees. That is why the employee KPIs are also crucial for business success. A business’s success is a very broader term, it is measured with so many different scales and matrices. However, for any business their success is to achieve their high-level organization goals and objectives. The employee KPIs help managers to obtain higher performance form the available resources to maximize the efficiency which results in success and is considered a key to get desired results. For any business the simplest form to achieve their goals is to simply maximize the performance and minimize the operational cost. Which is only possible when the employees are working at their maximum potential and are able to produce the desired or expected outcomes.

Importance of Employee KPIs in Improving the Performance

The KPIs can not only simplify the evaluation process but it also help businesses in measuring and monitoring both the quality of the work and the quantity of the work as well. The KPIs can be implemented using a performance management system or software, which not only measures the KPIs but also automates the process of collecting the data and on top of that it also allow the managers to easy analyze the data and prepare actionable reports from it. This way the managers can easily learn about the strengths and weaknesses of the employees, they can train them, encourage them or motivate them to boost their performance. Furthermore the employee KPIs are also used for self-assessment, which also increase competitiveness and motivate the employees. That is why the employee KPIs are so crucial for achieving the high performance from the employees which is a key to long term success.

Importance of Employee KPIs in Improving the Performance

Employee Performance Management System

The employee performance management is totally different from just taking a few KPIs. In fact the KPIs are just a part of the overall organizational performance management. The performance management’s primary goal is to increase employee engagements and build a strong relationship between the employees and the business and higher management. It gives employee confidence, it motivates them and it boost their moral which results in higher performance. The employee performance management is a very complex and lengthy process which is being executed over a longer period of time to gradually enhance the employee performance and improve the overall productivity of the business. Measuring all those matrices manually and collecting that much of data is not possible. That is why businesses and organizations use Performance Management Software, or Enterprise Performance Management Systems. The Performance Management System or Software is integrated with different enterprise systems and business tools, in fact it is linked with the central information center of the organization which allow it to gather performance data and measure all sorts of matrices, KPIs, OKRs, and other performance indicators.

Employee Performance Management System

Here are some key features of a performance management system:

  • The user interface and user experience of the system should be very customer friendly
  • The system should have in-built templates and helping materials to help management with initial set up
  • The entire operation should be automated, the data integration and even the basic level of analytical process should be done automatically to facilitate the users
  • The features to aid the employee performance management process and support both employees and the managers with communication, interactions and meetings
  • Features to easily set up goals and objectives and ability to blend and modify goals during the performance management cycle
  • Highly customizable and intuitive feedback collection module to aid, upward, downward, or peer to peer feedback
  • Data sharing, distribution and protection features to allow easy access to the data and to prevent the sensitive data from unnecessary exposure
  • Comprehensive features to aid data analytical, historical stats analysis, comparison and other data processing techniques
  • Flexible design and scalable infrastructure to support customization, upgrade, and scalability in future

Employee Performance Management System

These are some key components of a performance management system. There are several off-the-shelf employee performance management systems and tools branded with different names. However, we always suggest our employees to go for a customized or tailor-made performance management system. Because the customized tool can provide more accurate data and can be very helpful for the users which also enhance the efficiency of the system.

Employee Performance Management Process

The employee performance management process begins with communicating the job roles of the employees. This will tell them what they should do and what the business is expecting from them to deliver. The job role is the day-to-day tasks which require a certain level of competencies both technical and behavioral competencies. The next step of the performance management process is to set quantifiable/measurable, specific, achievable, realistic, and time bound. These goals will then communicated with the managers, H.O.D.s, Line Managers and other senior staff. That top level and senior management then define goals and set up KPIs. Basically the very first step of an employee performance management process is planning. The HR and/or the senior managers sit together, they set the high-level organizational goals, then they set the goals for teams and departments and then they set individual goals.

Employee Performance Management Process

When employees are also engaged in setting goals and making pans their feedback is taken, they feel more empowered and connected to the business. It also give them a sense of personal attachment with the goal and in such situations people tend to perform well. By increasing employee engagements businesses can boost their performance and it also help improving employee retention rates too. Employee engagement is crucial for improving the performance. The feedback is a very important factor in performance management. The employees who receive feedback at least once in a week from the manager are tend to show performance improvement of 8% to 15%. The performance management is not a one-time job, it is a continuous process and it keep improving the employees and their performance. Here is a quick summary of how the performance management starts:

Set Goals and Objectives

The goals and objectives are the most important part of performance management, if the goals and objectives will be realistic and achievable they will encourage employees to perform better to achieve those goals. The high-level organizational goals and objectives are set as per the mission and vision of the business. Then the strategy and planning department make plans to achieve those targets. The same goals and objectives further divided into department, teams and then the individual goals as well. There are several different methods followed to build goals and demands however, the most commonly known methodologies for goals and objectives are SMART and 5As.

Set Goals and Objectives

Strategy and Planning

The goals are based on the vision, desire, projection and expectations, however, the goals doesn’t define themselves and doesn’t tell how business can and should achieve them. For that businesses made strategy and plans. For example if the goal of the business is to become the number one service provider in their niche. Then they need a strategy and a plan to become the top leader in the market. For example, the business might need 30% increase in the customer satisfaction, in order to achieve that 30% the business will have to improve the service delivery process, the customer waiting experience and the customer sales staff and a lot many other things. That is how the strategy and plans are built. The same applied to the departments, teams and even individual employees as well.

Strategy and Planning

Set Up KPIs and Performance Matrices

Once the strategy and plan is made, the management should set measuring matrices and performance indicators which will tell how successful or unsuccessful the business was during the performance cycle. There are several different types of the performance matrices however, here are the few most commonly used performance matrices:

  • Key Performance Indicator – KPI
  • Key Responsibility Areas – KRA
  • Objective and Key Results – OKR
  • Balanced Score Card – BSCs

Businesses can easily measure and monitor performance at any level using the above mentioned matrices. The KPI or Key Performance Indicator is the most widely used performance indicator.

Set Up KPIs and Performance Matrices

Real-time Monitoring

The best thing about a performance management system is that it enable businesses to monitor performance in real-time. The managers can monitor the performance of their subordinates in real-time. Which provide them advantage of making quick adjustments, make course corrections and prepare for the unexpected scenarios. As soon as an employee deviates from their expected path, or their performance slows down, the manager can immediately know about it. This provide enough space for the manager to take appropriate action to resolve the problems and to boost the performance. The employee performance management system also enable the management to effectively and efficiently handle unexpected situations and identify the areas of improvement. This help businesses in dealing with the challenges employees are facing and also help businesses gain their trust.

Real-time Monitoring

Conclusion

Businesses in Dubai and all around the UAE are facing several challenges which require them to perform at maximum operational efficiency to ensure customer satisfaction and cost-effectiveness. The employee KPI or key performance indicators are used to measure the performance of the employee, the performance management system is used to deal with challenges and obstacles your employees are facing on daily bases. The main objective is to increase employee engagements, boost communication and encourage feedbacks. The performance management system is capable of monitoring employees directly and it can also be linked with other enterprise systems and solutions. The main objective of the performance management system is to effectively communicate the job role, individual & high-level goals and closely monitor the performance of the employees. This can significantly boost the performance of the businesses. RSI Concepts is a leading name in Employee Performance Management System (EPMS), if you need any help or want to learn more about the subject, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

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Importance of KPIs to Improve Employee Performance in Dubai, UAE

Importance of KPIs to Improve Employee Performance

Organizations use KPIs (Key Performance Indicators) for Employee Performance Management and to achieve the goals and objectives of an Enterprise. Employee performance is very important to ensure that the entire organizational structure is on the way to progress. Employees form teams, teams form departments, and the departments form an entire organization. This is why it is important that the basic element of your structure, which are your employee, work efficiently.

The government of UAE, Dubai, and Sharjah has set of guidelines to set up KPIs also known as SMART targets, reviewed annually to measure the performance of the employees working in the Government Departments. In the standard put in place by the UAE Government, the KPIs stand with 60% weightage in the Performance Management System. The rest of the 40% weightage is assigned to Behavioral Competencies of the employees, also reviewed annually. The Best Performance Management System developed by RSI Concepts in Dubai, UAE has configuration level settings to follow the standard set by the Government of UAE or other emirates such as Dubai, Sharjah, or Abu Dhabi.

KPIs are very important to boost employee performance by providing them with detailed insight into their progress and achievements, which boosts employee morale. Apart from that, KPIs are capable of measuring the performance of the employees and their contribution to the organization’s goals and objectives. The contribution to the goals and objectives by the individual employees can be monitored to learn the most valuable resources of the Enterprise.

The KPIs not only help the employee to monitor and track their performance but also helps the business to choose the right people and then put them in the right places to maximize the output by ensuring maximum employee engagement and employee retention. This is how the overall performance of an enterprise is improved and this is how the performance of an individual employee is improved. The KPIs play a vital role in employee performance and business performance. Only when targeted people are placed for the jobs they are experts in achieving the maximum outcome. The employee engagement indicators and employee retention are equally important, if not less.

See More: How Queue Management System Helps to Provide Better Customer Service

Choose the best Seat/Position for your Employee
Choose the best Seat/Position for your Employee

Setting up KPIs could be a very tricky task for the HR department or the manager. Many factors and variables come in place to set a particular KPI. As the name says “KeyPerformance Indicators”, it represents a particular and very specific measurement of a particular business outcome. There are thousands of KPIs which can be used, but it is crucial to have the appropriate KPIs which could help to improve employee’s performance. The KPIs also have to be defined as per the business goals and objectives, as the ultimate aim is to achieve the business objective.  Hence a defined outcome has to be set for a definitive period of time so that you can measure the employee performance for a particular time period. The business objective should have to be defined first then the measurement of the progress and how to measure it and how does this progress matters for the overall organizational goals and objectives.

Once the KPI is set, measure the performance of the employee for a defined period of time. Assess it, if you think the employee is doing well, then keep the employee in the same position. If you find out the employee can perform better in another position, you can discuss it with the line manager and then move them to a different seat or position. In order to maximize employee performance, it is extremely important that the employee is working at the right seat and at the right time.

See More: How Queue Management System can benefit in shipping industry?

Measure the Skills and Expertise of the Employees

Measure the Skills and Expertise of the Employees

This may sound a little bit vague but these indicators do exist. There are certain indicators that indirectly measure the skills and level of expertise of an employee. For example, employee’s response to a challenging situation, average time consumed for challenging tasks, etc. The expertise and skills can also be assessed by measuring the average time consumed to perform a routine task? What are the feedbacks from their supervisor or manager and co-workers and what is his behavior with the other teammates, etc? Such indicators will help the management to understand how well an employee is working in a particular position and how happy he or she is from that work. Employee satisfaction is also very important to ensure good quality work. Without the employee’s happiness and sufficient skills and expertise to perform a certain job role, they won’t be able to perform well. This is why these indicators are very important to put the employees at the right work, which will automatically boost their performance.

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Monitor the Employee’s Behavioral KPIs

Monitor the Employee’s Behavioral KPIs

Behavioral KPIs are a very important factor in enhancing employee performance. Some of the indicators are directly linked with the employee performance and some of these indicators are linked to the performance of the other. The employee behavioral analysis will let the management understand how well an employee can perform in a particular team. If an employee has been added to a team, where he or she is not properly welcome or acknowledged or where they might not want to work, this will definitely decrease their performance and their cooperation with the team. Eventually, this scenario will impact the performance of the entire team. It is crucial that an employee remains in good terms with their teammates, co-workers, seniors, subordinates and everyone they are interacting with to perform a particular task to achieve the business objectives. Such indicators will help the management to rectify that kind of scenario which will result in improvements in employee performance.

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Rewards and Acknowledgements on the Bases of KPIs

Rewards and Acknowledgements on the Bases of KPIs

It is very important to keep the morale of the employees high all the time to perform them at their maximum potential. Rewards and acknowledgments are the best remedies to boost morale. It is also very important that the employees are only encouraged for the tasks and activities that completely align with the organizational goals and objectives. The rewards and acknowledgments always have a huge impact on the employee’s performance. Lack of acknowledgment is among the top reasons why an employee leaves a company. The lack of acknowledgment also reduces employee performance and personal development. The appreciation for good performance, quality work, and early task completion, better outcome in challenging situations, good performance at difficult tasks, and such indicators help the management to recognize and reward an employee for their performance. An employee performance management system can provide you with all the KPIs that are required to assess and reward employees.

See More: What are the Different Types of Queue Management System?

Use KPIs for Employee’s Personal Development and Training

Use KPIs for Employee’s Personal Development and Training

Personal Development and Training are the most effective ways to increase employee performance. For that, there are certain indicators that need to be monitored and measured in order to assess the need for a training program. The Employee Performance Management System can easily provide KPIs to measure the level of skills and expertise of an employee. Additionally, the KPIs can be set to measure various other indicators which suggest a particular training program. For example, you have installed a new boiler unit at one of the factories, when an employee works on the new unit, it took them more time to perform the same task which earlier they were performing in less time. This is just a very small example to identify that the employee needs the training to learn how to operate the new boiler efficiently. This is how simple to very complex KPIs can be set to identify a need for a training program. A proper training program can significantly improve employee performance.

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Employee Rankings with KPIs

Employee Rankings with KPIs

The employee ranking could include a lot many indicators, from their behavior and technical achievements to their attendance and punctuality as well. Most of the organizations have different sort of reward programs, for those programs they measure and monitor the employee and rank them on the basis of their overall performance. Employee rankings and then recognition and acknowledgment are extremely important in boosting employee morale. Moreover, to such employees who are neither rewarded nor nominated in the reward program, they can also view their performance and all the details of where they are doing well and what sectors they are not performing well at. This will also boost their morale and they will work harder to get recognition and/or reward.

See More: Employee Performance Management is a small part of Performance Management System

Employee’s Personal KPIs

Employee’s Personal KPIs

Personal KPIs are set to understand the individual contribution of the employee in achieving the organizational goals and objectives. These KPIs also provide the data to the employee themselves to let them understand and assess their contributions. These KPIs are extremely important in improving employee performance, self-assessment is a powerful factor and the employee can gradually improve by understanding, identifying, and correcting their weaknesses. The employees can set their own personal goals and as time passes these goals will also grow, these things can significantly improve the employee performance. Personal progress and personal goals would help employees to gain interest and motivate them to do better with their next task. These KPIs are very important in unlocking the maximum potential of an employee.

See More: How Performance Management System helps in Customer Journey improvement?

Conclusion

The KPIs are extremely important to improve employee performance. The KPIs and performance management system are used to assess and evaluate the progress of the entire business or enterprise. The employee performance management system is very important to boost employee performance. The KPIs indicate different matrices which help the management to determine the best suitable position for the employee, if an employee is placed in the right role and right position their performance will automatically improve. The KPIs can also identify the area of improvements, training, and personal development which could help to improve the productivity of the employee. Employee performance, achievement, recognition, and reward are extremely important for employee satisfaction, and employee retention. The KPIs and Employee Performance Management System ensure that the employees are working at their full potential and in the right direction towards business goals and objectives. RSI Concepts is a leading Employee Performance Management System provider in Dubai, UAE. If you want to learn more or have any inquiry feel free to reach us out through our Contact Us page.

Check out this: How a KPI Software can help provide better Customer Journey?

Employee Performance Management is a small part of Performance Management System

Employee Performance Management is a small part of Performance Management System

Employee performance management is basically a small part of a performance management system. Most often business does not differentiate between both. In reality, employee performance management is just a module of a very large scale performance management system that measures the KPIs of the entire organization or enterprise. The performance management system not only includes an employee performance management module but it includes a lot many other modules that when put together forms an enterprise performance management system. For example, the performance management system includes the performance of the supply chain, production units, marketing, sales, customer support, customer retention, leads and conversions, revenue and finance, operations, IT and infrastructure, transport and everything else which is a part of the enterprise. However, the employee performance management module only measure and monitor the performance of the employees.

Here are the details of the two tools:

1. Employee Performance Management

Employee Performance Management

The main objectives of employee performance management are to understand the efficiency of the employees, which could be further narrow down to their job roles, projects, behaviour, and much more. There are different KPIs (key performance indicators) that are used to monitor and measure the performance of an employee, team/group, and department. These KPIs will help the business in taking employees related decisions such as promotion, compensations, bonuses, personal development, career development, transfers, and termination. The best approach is to set clear and discrete expectations and goals and then measure the performance and achievements against those expectations. Employee performance management is a part of the enterprise performance management system which is connected with a lot many other enterprise systems and organizational tools to collect data and feedback, then all the inputs are carefully analyzed through a very powerful software engine and at the end, the reports are being generated which are very clear and realistic measurements of the performance of an employee. On the basis of these reports and data, the management can easily take vital decision to improve their overall efficiency and output. The only right person for the right job will be able to produce desired results.

An effective employee performance management includes the followings:

Goals and Expectations

Goals and Expectations

The performance should be measured by the achievements and accomplishments of the employees and the achievements are weighed against the goals. The goals are set as per the expectations, and the expectations are based on the employee role, experience and skills or education. This is how KPI management works. You analyze and weigh the employee then set up expectations and KPIs to measure their performance. The goals and expectations related to KPIs are in fact a set of multiple KPIs:

Project Goals

Project Goals

 

These goals and related KPIs are based on the employee performance in different projects which are being measured and monitored for a year. There could be multiple projects in a single year or a single project could also last for multiple years.

Job Role/Description

Job Role/Description

These goals are based on the job description or title of the employee. Obviously, the goals and KPIs of a crane operator will be different from a construction supervisor. So each job role and title have their own objectives, contributions and expectations depending solely on their job role/description.

Response to Challenges

Response to Challenges

This often knows as stretched goals too. These are the goals and expectations set for unusual or challenging conditions and scenarios. The measurements are taken of how well or bad the employee respond or act in challenging conditions on the basis of the outcome of their actions.

Behavioural Expectations

Behavioural Expectations

These are the expectations of the enterprise from an employee towards the people, assets and resources around them or under their command. For example, how an employee behaves to their colleagues, subordinates, team lead, manager, supervisor, etc. The behavioural goals also include KPIs that provide data about “how” a goal can be achieved through a particular employee.

Monitoring and Performance KPIs Measurement

Monitoring and Performance KPIs Measurement

Once the goals are set, then there is a need to establish a system of KPIs that can measure the performance of the employee toward the set goals and the expectations from them. The performance management includes a complete review of employee performance in all relevant topics. Along with various KPIs, a continuous feedback process is established and the monitoring process is also continuous or for a particular employee review cycle. In most cases the monitoring and the KPIs measurement is continuous. The management notes down those indicators and held regular dialogues between the employee and their manager to keep improving the outcome for the rest of the review cycle. The dialogue should be two-way communication in which the employee should also be allowed to express their concerns, needs and opinions. Then the organizations can take accurate steps to boost the employee’s performance.

No matter what format or type of the review methodology has been used, the reviewer must have a very clear understanding of each stage of the review and the parameters they are evaluating an employee against. There are so many different approaches and methodologies that are very commonly used in Dubai, UAE and each one of them have some advantages and some drawbacks too. Hence, the performance should be measured on various scales to get a definitive answer.

Multi-source Feedback or 360 Feedback

Multi-source Feedback or 360 Feedback

This is the most popular review method. Not only in Dubai, UAE but all over the world enterprises and organizations are using this method to measure employee performance. It includes feedback from the supervisor, manager, co-workers, subordinates and people around the employees. The objective of this feedback to understand the employee behaviour towards work and its impact on his performance and others’ performance or work too.

Management by Objectives

Management by Objectives

Management by Objective or also known as the MBO KPI is the process of evaluating the performance of an employee towards the individual goals and their contribution to the team, departmental and overall organizational goals. Usually, the MBO is for managers, team leads, supervisors, project coordinators and people with non-routine jobs.

Ranking Scale

Ranking Scale

The ranking scale is basically a process of distributing or putting employees in a discrete set or sub-set on the basis of their performance. Although ranking a group of employees or teams is very easy but the results are not so accurate. However, ranking individual employees in a certain group could be difficult as there would be a lot of different levels and the differentiation between those levels would be narrow to get meaningful results.

Competency Scale

Competency Scale

The competency scale measures the performance of the employee for different routine tasks based on their job role/description. As the goals and expectations are set for each job role, so the KPIs can be set easily and accurate data can be collected by measuring the employee performance in their routine tasks and job responsibilities.

Employee Capacity/Productivity

Employee Capacity/Productivity

Employee Capacity or Productivity is not a very linear KPI, the result of this scale are usually used to distribute the workload in different employees, teams and/or larger groups. This KPI help understanding which employee is working on their maximum output level and which employee can handle some more work.

Employee Billable Percentage

Employee Billable Percentage

The employee billable percentage KPI is also known as utilization rate, this process measures the billable and non-billable work hours required or been taken for a particular task. This could be a great help in determining the internal cost of a particular project and also the performance of the employees/teams.

Graphic Rating Scale

Graphic Rating Scale

This scale is basically a set of various KPIs such as attendance, quality of work, the number of tasks against a given period of time, dependability and also behavioural KPIs. These KPIs are easy to set and the data collected is highly accurate.

Revenue and Profit per Employee

Revenue and Profit per Employee

These are very basic and very important KPIs to measure the overall employees’ performance. For the employees the measurement is simple, total revenue or profit divided by the number of employees. It is critical to understand what your employees are bringing in. Both KPIsindicate to the organizations and enterprises that what their workforce is costing them and how much revenue and profit they are generating.

These are some of the very basic KPIs used to measure employee performance. There are literally thousands of KPIs which are available and can be used. Only after a careful examination and understanding of both the ‘Goals’ and ‘KPIs’ businesses should choose the KPIs that completely align with their objectives. There are a lot many other factors that can cause errors or inaccurate assessment such as insufficient data collection, favouritism, lack of differentiation or intertwined KPIs, and many more. So, it is always wise to seek the help of professional Employee Performance Management Solution providers, such as RSI Concepts.

2. Performance Management System

Performance Management System

The Performance Management System also referred to as Corporate or Enterprise Performance Management System is a system that measures and manages the performance of the entire business or enterprise. It includes the performance management of all departments, employees, key players, and key factors that contributes to the overall performance of a business. All the data has been collected from various KPIs, processes, matrices, methodologies and tools is gathered and analyzed in a Performance Management System. The goals, objectives and expectations are being set for not only individuals but for teams, departments, production units, sales and marketing campaigns and much more. The operational cost and performance, the effectiveness of the entire infrastructure of the enterprise such as the technology, human resource, supply chain, resources, revenues, cost, profits and everything in between is closely monitored and measured under the umbrella of the performance management system. The Performance Management System in itself is a very huge system and cover a lot of topics that is why we will only list some important KPIs that are used to determine the performance of an entire business, corporation or enterprise:

  1. Financial KPIs: Financial KPIs include revenue, cost, profit, internal costs, raw material costs, cost of the product or services sold, sales, sales for a particular product/service category, cost of resources and raw materials, operational cost, per employee cost and return and so on.
  2. Employee KPIs: Employee KPIs include all the above-mentioned indicators which help business understand the cost, profit, gains and performance of the individual employees as well as of team and departments.
  3. Marketing KPIs: Marketing KPIs include marketing campaigns, cost, return, leads, quality of leads, sales as the result of a particular marketing campaign and all details to assess and review the performance of the marketing department.
  4. HR KPIs: HR KPIs include the performance of the HR department, staff and services, employee turnover rate, employee satisfaction, and recruitment performance. These KPI also include the indicators of expenses and returns and overall performance of the HR department.
  5. Customer KPIs: Customer KPIs include a number of happy and unhappy customers, returning customers, customer churn rate, new customers, customer lifetime, customer acquisition cost, and customer support and so on.

These are just a few major KPIs used to assess the performance of an entire enterprise or corporation via a Performance Management System. There are a lot more KPIs that are used to further narrow down various variables to closely monitor and measure the performance of various factors which when concluded represent the overall performance of an entire enterprise.

See More:  How a KPI Software can help provide better Customer Journey?

Conclusion

Businesses most often confuse Employee Performance Management with the Performance Management System. Employee performance management is just a small module of a performance management system. The Performance Management System measures various indicators which starts from the lowest level which is individual employee’s performance and ends at the overall performance assessment of the entire business or enterprise. Business and enterprises invest heavily in order to ensure their growth. These investments include all sort of technological solutions, infrastructure, human resource, employee development and training, customer retention programs, marketing and a lot more. It is very important to closely monitor each and everything to understand whether your efforts are in the right direction or not. Another important thing is to ensure your employees and customers are happy and your employees and other elements are working on their maximum potential to ensure the low operational cost of the business and maximum profit.

RSI Concepts is a well-reputed brand in providing performance management systems, KPI and OKR management solutions. If you need to know more, or if you are interested in a quote, feel free to reach us out through our Contact Us page.

Check this out: How Performance Management System helps in Customer Journey improvement?

How Performance Management System helps in Customer Journey improvement?

How Performance Management System helps in Customer Journey improvement

Customer Journey is a key player in any business’s success or failure. If your customers are not happy, customer retention will be harder, you will keep losing customers, no matter how hard you are working at your marketing activities. And if you are unable to sustain your existing customers your growth will be compromised. Your marketing expense will increase and your brand identity and reputation would decline which could have a devastating impact in the long term. The performance management system is a very powerful tool for businesses to ensure success and steady growth. Obviously, the performance of an organization can easily be measured by its growth and customer satisfaction. But it is not as simple either. In reality, a business’s performance is the performance of all their departments, finance and revenue, operational cost, production cost, support and other costs, profits, sales and customer satisfaction. Even if all is flawless but the customer journey is not so good and the customers are not happy, this could potentially negate all your efforts in all other manners.

The customer journey is the steps and activities that a business requires them to do from the first introduction till the sale and even after-sale services and support are also included. This is what a customer journey is. Whether you are in the production business, services business or any industry you should have customers and if you have customers there would be a purchase cycle too. The customer journey is the entire customer interaction with a brand from day one till today that includes the purchase and after-sales support, and everything else. Customer satisfaction is the key to a good brand reputation and improved conversion rates, and that all completely depends on the customer journey.

When talking about the customer journey it doesn’t only means the performance of the employees who are dealing with the customers, but it also includes all the IT and infrastructure that provides a full environment where your customers interact with your brand. Every business does its best to improve its service delivery methods, customer experience and customer journey. The businesses deploy new systems, train their staff, do marketing and install so many technologies just to improve customer experience and customer journey. But how would you know if all your efforts are paying off or not? The performance management system will tell you what you are doing right and what you are doing wrong, where you can improve things and what things are helping out in improving the customer journey.

How performance management system helps in customer journey improvements:

Measure Service Delivery Time

Measure Service Delivery Time

Service Delivery time is very important in customer experience and customer journey. The entire service delivery time from entering the branch till getting the service is the service delivery time. It can be reduced by many methods and technological solutions. For example, a digital queue management system can significantly improve (reduce) the service delivery time. Not only that the business can also measure how much on average a customer has to wait to get a service done. Then they can take steps to improve that and even steps can be taken to make the environment of the waiting area better for the customer which will improve their experience and satisfaction level. The average time taken by a server to deliver a particular service can also be measured with a performance management system which helps businesses understanding a lot of details.

See More: Benefits of Queue Management using Mobile Apps

Measure Average Customer Wait Time

Measure Average Customer Wait Time

The customer wait time is a very critical factor in the customer journey. The wait time starts from the time a customer dispenses a ticket for the queue or sign-up for the queue till they reached the counter/server. It is important to track this parameter. No one likes waiting, a long wait time could annoy your customers and visitors. It is very critical to take steps to reduce the wait time. Only the average wait time is not enough to completely understand and identify the areas of improvements. It is important to understand the average wait time on different days of the week or month or different hours of a day. As some hours are the busiest hours, some days are busier than the others and so on and so forth. If you are offering multiple services, then measure the wait time for each service, try to get as much detailed data as possible. This will make it easier to understand the process which will help you to improve the customer journey.

See More:  5 Tricks to Quickly Serve Customers Using Queuing System

Measure Customer Effort Score

Measure Customer Effort Score

Customer effort score is to understand the difficulties a customer face at multiple touchpoints during the entire customer journey. It is very hard to define a generic definition for these touchpoints as they are completely different for each case. Even businesses offering similar products and services could also have a completely different customer journey. A unique experience is what increases customer retention and customer satisfaction. Anyway, the customer effort score can be calculated by the time it requires to perform a certain task, how often customers are asking for help, and how often customers are complaining about anything will identify those touchpoints which require changes to improve the customer journey.

For example, for a customer service centre, a customer is coming to the branch, then they generate a queue ticket from the kiosk, and then wait in the waiting area and at the end they get the service done. The business could measure the average time taken by a customer to operate the kiosk to generate the ticket. How often customers are missing their turns due to poor audio-visual announcements. Sometimes the screens and speakers installed in certain areas and in other areas either the screens are not much visible or the sound couldn’t reach during the busy hours or so. Even if you are offering an online interaction, you can measure the time spent on different steps and especially those steps from where most of the customers are leaving your website needs special attention. These things will help to identify and measure the customer efforts score. The data can be used to improve those steps and touchpoints to improve the customer journey.

See More:  5 Challenges and Solutions of Queue Management System in Banks

Measure Walkaways and Customer Churn

Measure Walkaways and Customer Churn

It is very important to measure the walkaways and customer churn rate. The walkaways are the customer who happened to visit the branch get the ticket and signed up for the queue but left without getting the service. The customer churn rate is also a similar kind of KPI, the difference is that it measures the number of customers who left the brand or cancel their orders or subscriptions or purchases and it is measured for a given value of time. It is easy to set up those KPIs in a performance management system and businesses can get an excellent understanding of the reasons that are causing them to lose business. Additional data can also be gathered by requesting customers for their feedback or by inquiring them why they are leaving. This further help businesses to improve their customer journey to reduce the walkaways and customer churn rates.

See More: How Queue Management System can benefit in shipping industry?

Measure Employee Performance

Measure Employee Performance

Employee performance is very crucial to improve the customer journey. Proper monitoring, KPIs and OKRs could help to boost employee performance and let businesses understand the needs of training programs and other improvements. Which could further increase employee performance. For example, if an employee is taking too much time comparing to other employees to serve customers, then there must be something wrong. Either he/she is not trained well, or they are not motivated enough. The Performance Management System could help businesses to identify such employees and then the management can take adequate actions to resolve the problem. Most of the time it is either poor training or higher workloads which cause an employee to lag in performance. All issues are rectifiable, but the first step is to identify the issue. Boost in employees’ performance could hugely impact the customer journey.

See More: Queue System working in Government Departments

Monitor Support Request

Monitor Support Request

Customers always require support, whether it is pre-sale or post-sale support. Business should have to provide excellent support to the customers. As all of your products are services have definitive support types and possible enquiries, it is easier to enlist them all and ask your support team to mark each support ticket with those categories. Then carefully monitor the time your support team is taking to provide against each support ticket. Measure the average value, measure employee performance and overall departmental performance.  This way you could easily identify which types or categories of supports are harming your customer relations and what can be done to improve them. It is better to ask your customers for their feedback and analyze those feedbacks too. This way business can further improve their customer experience and customer journey with the help of a performance management system. This also helps to improve the products and services.

See More: How Queue Management System Helps to Provide Better Customer Service

Measure Complaint Resolution Time and Quality

Measure Complaint Resolution Time and Quality

Complaints are a very crucial part of a customer journey. If complaints remain unsolved it could literally ruin your relationship with your customers. It is very critical to measure the complaint resolution time. Categorize different complaints and measure the resolution time against each category. It is extremely important that your customers are satisfied at the end of each complaint resolution. These KPIs also help you understand the employee performance and then you can take steps to improve employee performance by more training and motivation or new recruitments. One thing is important to understand that each customer wants a personalized experience from their brand. Only good training programs can make your team able to resolve the complaints effectively. Whether they are technical complaints or general complaints, each complaint means a business could potentially lose a customer. It is very important to measure the performance of your service and support teams with a professional performance management system and then take steps to further improve the customer journey and customer experience.

See More: 10 Reasons to Choose RSI Queue Management System over Other Similar Products

Measure the Performance of Digital Interactions

Measure the Performance of Digital Interactions

Digital is now an integral part of our society especially the metropolitans like Dubai and other emirates of UAE are very advance societies. The expectations of the customers are high the competition is tough hence the businesses have to be very vigilant to sustain customers and build a positive reputation. Which is only possible with a great customer journey. These days a customer journey not only starts from entering into the branch or outlet, but the online interaction is also very important. People love to talk on social media platforms, brands often use them to communicate with their customers and larger audiences. Especially measure how much time it usually takes your team to respond to customer’s email or social media queries and everything else.

It is important to build a good brand presence and positive brand image in the digital world. Businesses are spending very huge chunks of their hard earnings on digital channels. Whether it is social media, online marketing or online customer portals. All could be very helpful in customer retention and generating new leads. It is important to measure the effectiveness of your digital efforts with the specialized KPIs and OKRs. A performance management system helps to measure the performance of your website or the performance of your social media team or digital marketing efforts or anything that is enabling interaction with your customers in the digital world. Take discrete steps to improve your digital communication with your customers and the digital platforms which allow interaction with your customers. This will enable you to understand and improve the digital customer journey.

See More: What are the Benefits of Improving Customer Journey?

Conclusion

A Performance Management System can help businesses a lot in streamlining their processes, resources and business practices. The business can easily identify the areas of improvement and then effectively focus their efforts and resources in those directions to improve the customer journey and customer experience to improve brand reputation, customer retention and customer satisfaction which in long term ensures steady growth and increased sales and revenue. The performance management system is not only capable of measuring the performance of different processes and operational activities but it can effectively measure the performance of the entire enterprise including internal departments, teams, and individual employees. The performance management system can easily measure and monitor the customer journey and various steps and processes along with employees and staff and all other factors that are responsible for forming the entire customer journey and customer experience. This is very helpful in understanding and identifying the areas of improvements. Business can easily take steps and build up their strategies to improve the customer journey on the basis of the data collected and generated by the performance management system.

RSI Concepts is providing a complete customized solution for Performance Management Systems, KPI Systems and OKR Systems. Our tailor-made solutions are most efficient and more cost-effective. The personalized software interfaces make it a lot easier to operate and extract actionable reports. Feel free to reach us out via our Contact Us page if you have an enquiry or want to know more.

Check this out:  How a KPI Software can help provide better Customer Journey?

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