The preparation of Employee Key Performance Indicators (KPIs) is a cornerstone of any performance management system. KPIs are designed to align individual employee performance with the strategic objectives of the organization, ensuring every team member contributes to the overall success. This article outlines the policy, procedure, flowchart, performance appraisal form, and monitoring form related to the preparation of Employee KPIs. Our approach emphasizes the SMART criteria (Specific, Measurable, Achievable, Relevant, and Time-Based) to set effective KPIs collaboratively between employees and their supervisors, with potential input from the HR department.
1. Policy of Preparation of Employee KPI
Objective
The policy aims to provide a structured approach for preparing and monitoring Employee KPIs to enhance individual and organizational performance.
Scope
This policy applies to all employees at Dawgen Global, ensuring consistency and alignment with the company’s strategic goals.
Key Principles
- Alignment with Strategic Objectives: KPIs should directly support Dawgen Global’s strategic objectives and departmental goals.
- SMART Criteria: KPIs must be Specific, Measurable, Achievable, Relevant, and Time-Based.
- Collaborative Development: KPIs should be developed with input from the employee, direct supervisor, and HR department as necessary.
- Regular Review and Adjustment: KPIs should be monitored regularly and adjusted as needed to reflect changing priorities or conditions.
2. Procedure of Preparation of Employee KPI
Initial Meeting
- Timeline: Early December
- Participants: Employee, Direct Supervisor, HR Representative (if necessary)
- Purpose: Discuss and draft the initial KPIs for the upcoming year
Drafting KPIs
- Criteria: Ensure KPIs are SMART
- Tools: Utilize strategic goals, departmental objectives, and employee job descriptions
- Documentation: Record KPIs in a preliminary draft document
Review and Feedback
- Process: Supervisors review the draft KPIs, provide feedback, and suggest adjustments
- Iteration: The draft may undergo multiple iterations based on feedback
Finalization
- Deadline: Complete by January 1
- Approval: Final KPIs are reviewed and approved by the employee, supervisor, and, if necessary, the HR department
Communication
- Dissemination: Distribute the finalized KPI document to the employee and retain a copy in the HR records
- Clarification: Ensure the employee fully understands each KPI and the associated expectations
Monitoring and Adjustments
- Ongoing: Regular check-ins throughout the year to monitor progress and make necessary adjustments
- Formal Reviews: Mid-year and end-of-year performance appraisals to evaluate KPI achievement
3. Flowchart of SOP Preparation of Employee KPI

4. KPI-Based Performance Appraisal Form (Sample for HR Manager)
Employee Information
- Name: [HR Manager Name]
- Department: Human Resources
- Review Period: [Date Range]
KPI Evaluation
KPI Description | Target Value | Achieved Value | Rating (1-5) | Comments |
---|---|---|---|---|
Recruitment Efficiency | 90% positions filled within 30 days | 85% | 4 | Slight delay due to market conditions |
Employee Turnover Rate | < 5% | 4.5% | 5 | Achieved goal |
Training Program Completion Rate | 95% employees trained | 92% | 4 | Improvement needed in participation |
Employee Satisfaction Score | ≥ 80% | 78% | 3 | Need to address feedback |
Compliance with HR Policies | 100% compliance | 100% | 5 | Fully compliant |
Overall Performance Rating: [Calculated Average]
Supervisor Comments: [Comments on overall performance, areas of excellence, and areas needing improvement.]
Employee Comments: [Employee’s feedback on the appraisal.]
Signatures:
- Employee: ____________________
- Supervisor: ___________________
- Date: ________________________
5. Monitoring Form for KPI Achievement
Employee KPI Monitoring Form
KPI Description | Target Value | Achieved Value | Monitoring Date | Comments |
---|---|---|---|---|
Recruitment Efficiency | 90% positions filled within 30 days | 85% | [Monthly/Quarterly] | Adjust strategies for faster recruitment |
Employee Turnover Rate | < 5% | 4.5% | [Monthly/Quarterly] | On track |
Training Program Completion Rate | 95% employees trained | 92% | [Monthly/Quarterly] | Increase engagement efforts |
Employee Satisfaction Score | ≥ 80% | 78% | [Monthly/Quarterly] | Plan for addressing concerns |
Compliance with HR Policies | 100% compliance | 100% | [Monthly/Quarterly] | Maintain compliance |
Monitoring Summary
- Date: [Current Date]
- Overall Progress: [Summary of progress towards KPI achievement]
- Action Items: [List of actions to address areas not meeting targets]
- Responsible Person: [Name of person responsible for action items]
- Next Review Date: [Next scheduled review date]
Conclusion
By adhering to this structured approach, Organizations ensures that employee KPIs are prepared effectively, aligned with organizational goals, and monitored for continuous improvement. This process not only drives individual performance but also contributes significantly to the overall success and strategic growth of the organization.
Next Step!
“Embrace BIG FIRM capabilities without the big firm price at Dawgen Global, your committed partner in carving a pathway to continual progress in the vibrant Caribbean region. Our integrated, multidisciplinary approach is finely tuned to address the unique intricacies and lucrative prospects that the region has to offer. Offering a rich array of services, including audit, accounting, tax, IT, HR, risk management, and more, we facilitate smarter and more effective decisions that set the stage for unprecedented triumphs. Let’s collaborate and craft a future where every decision is a steppingstone to greater success. Reach out to explore a partnership that promises not just growth but a future beaming with opportunities and achievements.
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