O que os KPI's podem fazer pela gestão de uma empresa?

What can KPIs do for the management of a company?

Posted Leave a commentPosted in Definição de métricas de negócio

Having defined KPIs is essential to the good performance of a company. KPIs are key performance indicators that tell us what state the business is in and how far (or near) we are from meeting the stated goals. Based on the indicators and the company’s performance, managers can make more informed decisions. BAM tools such as Multipeers allow you to track KPIs continuously and in real time. Analyzing performance consistently ensures that more attention is paid to meeting the objectives, effectively increasing the degree of achievement of the objectives. Continuous performance monitoring plays a key role in planning and subsequent control because it provides information on processes developed by the organization. The effectiveness of any control strategy depends to a large extent on the correct suitability of developed performance metrics and KPIs. In today’s article, let’s realize what KPIs can do for running a business!

Clear knowledge about business strategy

It is essential that each employee of the company or organization knows their KPIs and that they are updated with some frequency. “If we don’t know where we are going, any way is good”: the same goes for companies. If we are not aware of the results we should achieve with our work, we can do anything, and this may not be in line with the organization’s overall objectives. Defining the indicators of each employee and connecting to the monitoring system is essential for obtaining a global and integrated view of the state of the company and the performance of each one. It is also important to mention that each employee should have access only to the indicators that are important for the continuation of their work, so as to have a more focused and organized day-to-day.

Allow to evaluate the company quantitatively

KPIs allow measurable results to be achieved. And this is very important in a company, because the numbers do not lie! It is not enough to have a subjective knowledge about the results of the company. It is necessary to know objectively the true values ​​of the organization. Through the analysis of KPIs it is possible to redefine strategies and change what is not giving positive results. It is essential that KPIs are evaluated on a frequent basis, since only in this way can they have a significant impact on the life of the company.

Increase the performance of the sales department

When well defined and implemented, KPIs help drive sales. When there are defined goals and rewards associated with their implementation, the tendency is for employees to work even harder to achieve the stated goals. This creates healthy competition between the different vendors and in the end the company comes out to win with the increase in sales!

Make decision making more efficient

KPIs provide a lot of information about the company and in that way make decision making more efficient and easier. Managers often complain about the lack of information about the company in order to be able to decide consciously and these performance indicators gain a prominent role in making decisions about the future of the company. Managers can only make assertive and sound decisions if they have a full understanding of business reality. And nothing better than KPI’s to provide all that knowledge.

Improve achievement of objectives

Analyzing the performance of a company on a constant basis ensures that more attention is paid to meeting the objectives. An efficient process must be planned and controlled. Continuous performance monitoring plays a key role in planning and subsequent control because it provides information on processes developed by the organization. The effectiveness of any control strategy depends to a large extent on the correct suitability of developed performance metrics and KPIs.

 

Defining business indicators in a conscious way is fundamental to being able to analyze the business objectively. It is essential that the indicators analyzed show managers the way forward in order to correct errors and apply new strategies. KPIs should be simple so that the entire team is able to understand them. If you get too complicated a KPI, you run the risk of not being able to extract any useful information from your analysis. If employees do not understand the indicator, they can become unmotivated, which harms the company’s performance. A KPI should be analyzed frequently because only with constant monitoring can we understand if we are correctly executing the company’s strategy and generating value with our activity. You should always opt for indicators that can be measured easily and frequently so that you can make day-to-day decisions based on reliable and up-to-date information. Finally, it is important to note that not all indicators are for all companies. There are indicators that fit one type of business but don’t make any sense in other areas of activity. Defining meaningless or useful indicators will only create harmful noise to employees’ performance and this will have a negative impact on the company’s bottom line.

Os melhores KPI's de recursos humanos que a sua empresa pode ter

The best human resource KPIs your business can have

Posted Leave a commentPosted in Definição de métricas de negócio

Without people, companies are nothing, and the internal public is one of the most important in organizations, since it is this that makes companies grow and evolve. People Analytics is the process of collecting, organizing and analyzing employee behavior data in order to contribute to decisions made in the company, anticipating trends and adjusting strategies. This term is increasingly important to companies and is expected to grow in importance over the next few years, which means that more and more data on employees exists and there is a need to do something useful with that data. KPIs help us work on information and gain insights for decision making. In today’s article, we present the best human resource KPIs your business can have!

Employee turnover rate

It indicates the number of employees who leave and enter the company, during a certain period. For the company, this index should be as low as possible because it means there is retention of talent. A high index may indicate a low attractiveness of the company in relation to the competition.

Absence

Absenteeism measures employee absence rates and indicates the actual reasons for absences or delays. Absenteeism may be linked to poor working conditions, such as ergonomics in the company or bad environment in the team.

Turnover Costs

In order to calculate this indicator, it’s necessary to include all the expenses with the payment of the contractual terminations and to add all legal and procedural costs. It is also necessary to add the expenses with the replacement of the professional who left, besides the investment in training.

Ratio between extra hours and worked hours

This indicator is linked to the concept of productivity and demonstrates the relationship between the amount of overtime (paid or accumulated in the time bank) and total hours worked. It’s an important indicator for analysing the overload, operational capacity and labor allocation.

Employee satisfaction index

This index is calculated by collecting opinions from employees, who can respond to surveys where they show their satisfaction on a numerical scale. The higher this level, the better the human resources area will be and the greater the motivation of employees to work.

Average cost by employee

This indicator shows us how much it costs, on average, each employee of the company. It is obtained after adding all personnel expenses (salary, food allowance, holiday and Christmas allowances, contributions to the State, among other expenses) and divided by the total number of employees of the company.