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KPI for Measuring of % of Employees that Ranked High in Performance Reviews posted in category Employee Motivation

WinningKPI - Employee Motivation - KPI for Measuring of % of Employees that Ranked High in Performance Reviews posted in category Employee Motivation Oana Boteanu
Details:
This indicator is for measuring the % of employees that ranked high in performance reviews. This is calculated by dividing the total number of employees with high performance rankings by the total number of employees ranked.
This KPI is usually based on the employees’ annual appraisals, and is managed by line managers and HR, and fed back to the leadership team.
Employees with high performance rankings are considered to be highly motivated individuals, as the key result that a company wants from employee motivation is high performance and working value.
Hence, this KPI measuring performance is used to measure the motivation level of the employees. The company’s aim is to maximise this figure by putting in place strategies and practices to increase employee motivation (e.g. through better trained line managers, staff benefits, performance rewards, empowerment etc.)

Formula
Number of employee with high* performance rankings / Total number of employees ranked x 100
*where high is a set figure, for e.g. 70+%

KPI Units: %

KPI Time Frame: update annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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Here are comments:

KPI Expert Performance Appraisals are a fundamental tool for companies to measure and manage the performance of their workforce. The performance measurement system varies from company to company, but most of the times it is based on regular reviews and performance rankings.

Let us take for example:
Company A uses 1-5 ranking for performance appraisals, anything 3 and below ranked as underperformance and anything above 4 ranked as satisfactory to excellent performance.
After the end of the annual appraisals, Company A wants to measure the % of Employees that Ranked High in Performance Appraisals KPI. This included all employees that have scored 4 and above.

Total number of employees ranked: 300
Total number of employees that ranked high: 230

% of Employees that Ranked High in Performance Appraisals:
230/300 x 100 = 77%

Therefore, 77% of the Company A’s workforce has ranked high in the performance appraisals.

Oana Boteanu | + | September 11, 2012 at 7:36 am

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