Types of Key Performance Indicators for Strong Company Cultures
Ask any prospective employee what they’re looking for in a workplace and chances are that “a great company culture” will be at the top of their list.
According to research conducted by Deloitte, 94% of executives and 88% of employees believe a distinct workplace culture is important to business success.
From employee recognition to investment in training and career advancement opportunities, and even flexible time policies, company culture can be defined in a myriad of ways.
Once you figure out what a strong company culture looks like for your organization, you need a plan for sustaining it.
This is where key performance indicators (KPIs) come in.
Different Types of Key Performance Indicators
Business leaders know that using and tracking KPIs is a powerful way to align team members with company goals, motivate them to be productive, and see what progress is or isn’t being made towards those goals.
KPIs should act as a north star, guiding decision-makers in the right direction.
Depending on the outcomes you want to achieve for your business, there are several different types of KPIs to consider.
Common types of key performance indicators are quantitative indicators and qualitative indicators (those that can be presented as a number versus those that can’t). Furthermore, lagging indicators tend to be output-oriented while leading indicators are more about input (or, outcome-based versus process-based).
All departments in a business can be assigned their own KPIs, which can drive the entire organization in the same direction. Like a puzzle, each department is one piece that contributes to the whole, completed set.
Just like there are different types of key performance indicators for employees, you may also set KPIs for your clients. This will help you ensure that you’re bringing on the right clients and providing them the right solutions for their needs.
Here are examples of key performance indicators for employees:
Finance Team KPIs:
- Cash in Bank
- Gross Profit Margin
Sales Team KPIs:
- Monthly Recurring Revenue (MRR)
- Current Sales Pipeline
- Sales Activity
Service Team KPIs:
- Kill Rate
- Tickets per Endpoint
- Service Level Agreement (SLA) Missed
When it comes to your clients, you may look at KPIs like Activity Level/Health Score or Customer Lifetime Value versus Customer Acquisition Cost.
But, how do you gauge company culture? Here’s a look at some more key performance indicators for employees.
KPIs for Gauging Company Culture
A good way to understand whether or not your company culture is strong and influential enough to keep your employee turnover rate low is to measure an employee’s happiness and productivity level.
This can be assessed by looking at certain KPIs related to your employee performance:
- Employee Satisfaction: You can gather this data through regular surveys and evaluations and it will help you see how happy your employees are and allow you to identify any potential problems.
- Employee Engagement: Again, this can be gathered through regular surveys and evaluations and will tell you how much effort your employees are willing to put towards their job and responsibilities.
- Employee Churn: This is a really telling KPI and a must-track for all managers. A high churn rate might indicate that your company’s culture needs improvement or that you need to make better hiring decisions. You can calculate churn by dividing the employees who left during a certain period by your average number of employees.
- Utilization Rate: Monitoring how your employees are utilizing their time can help paint a picture of their satisfaction with their job. The more productive they are (i.e., the more efficiently they are utilizing their time), the more likely they are to be happy. This rate is calculated by dividing the hours an employee spent on client work by their total hours worked.
- Revenue per Employee: Like Utilization Rate, Revenue per Employee can tell you about the effort an employee is willing to put into their role and how efficiently you are using your resources. Calculate this by taking your total revenue and dividing it by total employees.
There may be more metrics that are specific and important to your organization, so keep in mind that your KPIs may look different from your peers.
Also take into consideration that life - personally, professionally - is fluid, so you should be, too. As things change, you may need to shift your KPIs to make sense of your new situation. Or, KPIs may look different from quarter-to-quarter or year-to-year.
For a deeper understanding of KPIs and how to use them in your business, download this resource now: How KPIs Can Improve Your Business.