Author: Andrii Bratkin, founder of the “Personal Recruiter” recruitment agency

It seems that in our age of numbers and graphs, there is nothing cooler than implementing KPIs. And if you knew how many businesses have stumbled on this… Yes, yes, implementing a system of key performance indicators (KPI) is the same path that many companies have taken to find themselves in a favorable position in the market. However, the reality is that implementing KPIs can cause you to lose your best employees. Let’s figure out how to avoid this and how to maintain a balance between efficiency and retention of key personnel.

Why does the use of KPI lead to the loss of employees?

• Chronic stress. Constant monitoring of indicators turns the office into a place where even the coffee maker is nervous.

• Resistance to change. People don’t really like it when their world changes. Especially when it comes to work.

• Adaptation difficulties. The process of transitioning to a new system can be so difficult that even your best employee will want to leave for Tibet.

• Impact on corporate culture. Changes can undermine the mental microclimate that the company has been building for years.

• Demotivation. If the KPI system is built crookedly, you should not expect a positive response. Probably, each of us had to see a colleague who gave up.

How not to lose employees during KPI implementation

• Competent communication. The main thing is to say! Explain why you need this KPI, which mountain peaks you plan to conquer. People should understand what will happen next. Open meetings where everyone can raise their concerns and ask questions are the key to a successful start.

• Gradual use. Remember the saying about big elephants and small pieces? Here it is. Try a pilot project in a separate department. See what worked and what didn’t, and only then scale. Feedback? More important than ever.

• Training and support. No one is born with the ability to count KPIs in their sleep. Train your employees. Give them all the tools they need. Create a support group to resolve issues.

• Individual approach Each employee is unique. Maybe the routine work in accounting would be difficult for the creative marketing department. Develop KPIs taking into account the specifics of different positions. And do not forget a personal approach to those whose work is difficult to express in numbers.

• Balance of assessment methods. KPI is not a silver bullet to solve all problems. Combine it with other evaluation methods, pay attention to qualitative indicators.

• Regular review. The KPI system should not be “licked” once and for all. Regularly review and adjust it if any indicators are not working or demotivating your employees.

Psychological aspects of KPI implementation

Fear, injustice, loss of autonomy — these are three types of psychological problems when implementing a new system.

• Fear of failure. Employees are afraid that they will not achieve the goal. Adequate feedback will help reduce this fear.

• Justice. Make sure the KPI system is considered fair.

• Autonomy. Empower employees to participate in goal setting. Let them feel that their opinion matters.

The role of HR in employee retention

HRs are your magicians and wizards. They are:

• Analyze the organization’s needs and readiness for KPI implementation.

• A communication and training program is being developed.

• They monitor the mood in the team.

• They work with managers so that the KPI system takes into account the specifics of different departments.

• Organize regular feedback.

Technical aspects

• Use convenient tools to track KPIs that won’t turn employees into IT people.

• Automate data collection where possible.

• Make information available to all employees.

Integration with corporate culture

• Connect KPIs with company values.

• Encourage teamwork.

• Create a culture of development around KPIs.

Motivation and recognition

• Develop a reward system.

• Don’t limit yourself to financial incentives.

• Recognize employee successes publicly.

Feedback and adjustments

• Hold meetings to discuss progress.

• Be open to suggestions for improving the system.

• Adjust unrealistic KPIs.

Development of leadership qualities of managers

• Train managers to work with KPIs.

• Develop coaching skills.

• Encourage successful leaders.

Technologies at the service of KPI

• Implement automated tracking systems.

• Use dashboards.

• Apply predictive analytics.

Balance between control and trust

• Give employees autonomy.

• Focus on results.

• Encourage initiative.

Conclusion

Implementing a KPI system should not turn into a survival quest. Remember: the main purpose of KPI is to develop and increase efficiency, not control. Create a culture where KPIs become a tool for growth, and you will not only not lose employees, but also strengthen their motivation and loyalty.

So let’s take a brush, paints and go ahead to paint a beautiful future of your company with the help of the right KPIs!