Ideally, you need to have a strategy before start thinking about KPIs. How to create a good strategy? It's tricky and will require your expertise:
- You will need to understand what your customers want and
- How to give them what they want in the most effective way.
- You will need to think about your competitors and, for sure, about your team.
Even the best KPIs won't change anything if they are not properly aligned with a business context, if a company's strategy is not well defined, if there is no clear understanding about what the company is measuring and way... Check out a "crash-course" for the Balanced Scorecard and KPIs.
About the absenteeism I can share these thoughts:1. Measurement part: track the number of the days the employee was absent and divide by the number of working days. So the formula to start is: (days absent * 100%)/(total work days). 2. Another interesting metric to look at is the cost of absenteeism. In this case the days missed should be multiplied by the respective costs. 3. Finally, the absenteeism measure is too general, so you’d better focus on measuring the specific reasons, e.g. separating illness and other reasons.