Key performance indicators for employees are some quantifiable measures which are used by the organizations to evaluate the success of an organization as well as employees. KPIs are crucial factors for the success of an organization. The purpose of using KPIs is to focus on tasks and processes determined by the management for making progress towards declared goals. KPIs help organizations to measure how well organizations are performing compared to their strategic goals and objectives. Well-designed KPIs play a significant role as vital navigation instruments in making managers to understand the current level of performance. In simple terms, we can say that KPIs is a way for a business to quantify objectives so that they can regularly check up performance and determined key areas of improvement.

What is Key Performance Indicators for Employees

Key performance indicators for employees are financial and non-financial indicators which an organization uses to estimate and fortify the success of the organization. Key performance indicators help in determining the performance of the employees for the achievement of sustainable goals. KPIs are vital navigation tools that help managers to understand whether the business is on a successful voyage or not. Information on critical dimensions of performance help managers and take effective decisions. Most useful KPIs are closely tied with strategy objectives and help managers to find the answers to most critical questions.
The problem is that there are thousands of KPIs to choose from. It is hard for the organizations to choose the right one for their business. This article will cover some best key performance indicators to use for growth and development of employees as well as organizations.

Goal Measurement

Organizations set strategic objectives. Designing effective KPIs is one way of measuring the progress towards the achievement of those strategic goals and objectives. Therefore managers are required to develop KPIs with an objective to gain precise data on performance for the attainment of a particular goal.

Vital Information

KPIs are a quick snapshot of the overall performance of an organization. In this highly competitive global business environment, it is important for managers to have real-time data concerning the health of the organization. KPIs should have to provide vital information about functions, health, and operations of an organization. Best KPIs are required to provide necessary decision making information.


KPIs should have to design with an objective to promote an atmosphere of learning in an organization. According to Root Cause, data generated from KPIs foster critical conversations. These significant conversions between employees educate employees by making discussion on what KPI measures.


KPIs are required to lead employee towards some actionable steps for the achievement of goals and objectives. For example, a KPI to increase customer retention will not be able to achieve that specific goal because the goal does not have a measurable component that results in some actionable steps. The managers are required to convert measured and quantified data into actionable items to meet its goals. If the company revise the KPI to increase customer retention by 10 percent within 6 months, then it would be a useful and measurable KPI.


Continuity is another important consideration for the designing an effective KPI. KPIs promote long-term strategic goals in order to keep the measurement consistent over time.  KPIs are required to align with vision and plan of the organization strategically.

SMART and goals based key performance indicators are possibly best KPIs for any organization. SMART is an acronym which stands for specific, measurable, attainable, relevant and time-bound. SMART and goal based indicators keep track of employees’ performance and help in growth and development of the organization. Different businesses have different KPIs which depends on individual performance criteria or priorities. Usually, KPIs follow the industry standards. We can say that KPIs are actionable scorecard that keeps the strategy and performance of a particular organization on track. KPIs enable organization to manage, control and achieve desired results.

Most commonly KPIs fall into following four broad categories:

  • Improvement in revenue
  • Cost minimization
  • Improvement in process cycle time
  • The increase in customer satisfaction.

Conclusion on Key Performance Indicators for Employees

The above mentioned some important considerations could help managers to design effective KPIs. Best KPIs for employees in any organization are required to be specific, measurable, actionable, and relevant and time bound. Over the course of business life organizations have an obligation to change, monitor and review KPIs on a regular basis.