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KPI for Measuring of Ratio between High and Low Performance Employees posted in category Employee Motivation

WinningKPI - Employee Motivation - KPI for Measuring of Ratio between High and Low Performance Employees posted in category Employee Motivation Oana Boteanu Details:
This indicator is for measuring the ratio between High and Low Performance employees. This is calculated by dividing the number of low performance employees (if lower), by the number of high performance employees, or by comparing the percentages.
This KPI is used to measure employee motivation as, in management terms, high performance employees are considered to be highly motivated, and low performance employee are considered to have low motivation.
The company ‘s leadership team, together with HR and Line Managers, may put in place strategies and practices to increase the level of employee motivation, and therefore increase the % of high performance employees.

Formula:
Total number of Low Performance Employees (if lower)/ Total Number of High Performance Employees
Or
Total number of Low Performance Employees / Total number of employees x 100 and
Total number of High Performance Employees/ Total number of employees x 100
*where high is a set figure and low anything below that figure, e.g. if ranked 1-5, high is above 4, and low is below 4

For example, if a company has 200 employees and compares their annual appraisal results, where 150 scored high and 50 scored low, the ratio is:
50/150 = 0.33, 0.3/1 ratio, which is approximately 1:3
Or
50/200 x 100 = 25%
150/200 x100 = 75%
25:75 – 1:3, where for every 1 low performance employee there are 3 high performance employees

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 At the end of the appraisal year, Company A measures the ratio between high and low rankings in performance appraisals.

The company has a total of 300 employees.
The company has a ranking of 1 to 5, where 1-2 are below satisfactory performance level, 3 is acceptable performance level, and 4-5 are excellent performance levels.

For the purpose of the measurement, any score of 4 and 5 is considered high and any score of 3 and below is considered low.

Out of the total of 300 employees, 210 scored high
The rest of 90 employees scored low

90:210 (divide all by 30) = 3:7,
where for every 3 low performance employees, there are 7 high performance employees

Oana Boteanu | + | September 11, 2012 at 7:37 am

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