Development and implementation of system of effective indicators for the personnel work

Development and implementation of system of effective indicators for the personnel work is a complex of measures on formation of the instrument for setting of specific tasks within the overall strategy, stated goals and measurement of their actual execution by particular employee or working group.

The company’s activities often contain many words and little of numbers. Moreover, the numbers are absent in general they are replaced by emotions, subjective opinions and personal assessments. To avoid this, it is recommended to develop a system that will be oriented on achievement of specific results, goals, but not on the work “as a process”, as well as staff motivation system “tied” to specified number and indicators.

Key performance indicators are a system of indicators that allows evaluation of the effectiveness of performed actions. Key performance indicators can be used not only for the work evaluation of whole enterprise, its structural subdivisions, but also certain employees. With the help of KPI system one can not only monitor and evaluate the effectiveness of performed actions, but also to build an effective system of remuneration.

Working condition of indicator is a possibility of its measurement (in a quality and quantity manner), maximum objectivity, simplicity and most important – the indicator should reflect the department activity results, on which the staff can really influence.

KPI peculiarity is that performance indicator of each employee is connected to general KPI of all company (such as profit, cost effectiveness or capitalization). The purpose of the system is to make that actions of employees from different departments do not contradict each other and do not hinder the work of specialists from other departments. Each one contributes to the overall success, works to achieve goals set in front of him and as a result receives bonuses for their execution.

Work according to KPI permits employees to better understand what they need to do to be effective. The “effectiveness” is understood not only as a volume of work performed within certain period of time, but also the effect obtained by the company from the employee’s work.