Creating key performance indicators (KPIs) for non-revenue-generating roles in the financial services sector can be challenging. However, aligning these KPIs with overarching organisational goals can provide valuable insights into business growth and foster employee buy-in.
At Godfrey Group, we’ve noted a considerable increase in firms seeking effective KPI strategies for their support staff. Here’s our guide to creating meaningful KPIs that your employees can and want to achieve.
What Are KPIs (Key Performance Indicators)?
KPIs are measurable values that demonstrate how effectively an individual or organisation is achieving key business objectives. They provide a clear benchmark for success and are crucial for tracking progress and driving improvement. If you find yourself wondering “Do I need KPIs?” or “Are KPIs important?” Our answer is simple: absolutely.
Aligning KPIs with Organisational Goals
Creating KPIs that align with your company’s broader objectives is essential. This alignment ensures that employees understand how their work contributes to the overall success of the business. When KPIs are tied to the company’s strategic goals, employees are more likely to see the value in their work, take on leadership roles, and foster greater engagement and motivation.
The Impact of Setting KPIs on Business Performance
A well-designed KPI framework is crucial for providing the right feedback and tracking progress. Aberdeen Group’s study of over 350 enterprises revealed that top-performing companies see significant improvements in tracking KPIs: a 10% increase in decision-making speed, a 9% increase in both profitability and revenue growth, and a 9% improvement in net new customer acquisition and customer satisfaction.
Benefits of KPIs
- Clarity and Focus: KPIs provide employees with clear objectives and targets, eliminating ambiguity about what needs to be achieved.
- Performance Tracking: By using KPIs as a benchmark, businesses can identify trends, spot potential issues early, and adjust strategies as needed to stay on track.
- Employee Engagement: When employees understand their impact on organisational success, they are more engaged.
- Accountability: KPIs set clear expectations for performance, making it easier to hold individuals and teams accountable for their contributions.
Who Should Have KPIs?
Every employee, regardless of their role, can benefit from having KPIs. While sales staff often have clear revenue targets, support roles in HR, IT, and customer service also contribute significantly to the organisation’s success and should have KPIs that reflect their contributions.
How to Set KPIs
Define Clear Objectives
Start by defining what you want to achieve. Your objectives should be specific, measurable, achievable, relevant, and time-bound (SMART).
Collaborate with Employees
Involve employees in the KPI-setting process. This collaboration ensures that KPIs are realistic and attainable, and it increases employee commitment.
Regular Review and Adjustment
KPIs should be reviewed regularly and adjusted as necessary. This flexibility allows for adjustments based on changing circumstances so that the KPIs remain relevant and achievable.
Examples of KPIs for Non-Revenue Generating Roles
Customer Service
- Customer Satisfaction Score: Measure customer satisfaction through surveys and feedback.
- First Response Time: Track the time it takes to respond to customer inquiries.
- Resolution Time: Monitor the average time taken to resolve customer issues.
Human Resources
- Employee Turnover Rate: Calculate the percentage of employees leaving the organisation within a specific period.
- Time to Hire: Measure the time taken to fill open positions.
- Employee Engagement: Assess engagement levels through regular surveys.
IT Support
- System Uptime: Track the percentage of time systems are operational.
- Incident Response Time: Measure the time taken to respond to IT incidents.
- User Satisfaction: Gather feedback from users on IT support services.
Are KPIs Important for Non-Revenue Generating Roles?
Setting KPIs for non-revenue-generating roles is crucial for several reasons: they provide visibility into the performance and impact of these roles and help identify areas for improvement and drive efficiency. They also recognise and reward the contributions of support staff, particularly in the form of bonuses and salary increases, boosting morale and engagement.
Enhance Employee Performance with Effective KPIs
In our experience at Godfrey Group, setting effective KPIs for non-revenue-generating roles is essential for aligning employee efforts with organisational goals. By defining clear objectives, involving employees in the process, and regularly reviewing and adjusting KPIs, you can create meaningful and achievable performance indicators.
For a confidential discussion about your KPI strategies and how we can help you implement them effectively in recruitment, contact Godfrey Group on 02 8004 9350.
