What is employee KPI? How to calculate the degree of KPI fulfillment. How the system works

KPIs are key performance indicators of a company or a separate division. In this article, we’ll look at examples of KPIs for various specialists and look at how to develop and implement the system.

What is KPI

KPI stands for Key Performance Indicators - key performance indicators.

The KPI system is a reward system built on the basis of key indicators.

Working under such a system allows employees to better understand what they need to do to be effective. Moreover, efficiency refers not only to the amount of work they perform, but also to the benefit received by the company.

How to develop a KPI system

To create a C&I system in a company, you need to:

Select a key performance indicator model.
Define KPIs and distribute responsibility.
Create reporting.

How to choose a KPI model

There are many methods for defining and grouping indicators. In Russia, the classical approach is most often used, as well as the Balanced Scorecard (BSC).

The classical approach is based on the use of predominantly financial indicators, such as; see picture.).

Drawing. Tree of key indicators based on EVA

Note that to implement the developed strategy, financial indicators alone may not be enough. No less important for business is the development of relationships with clients, personnel management, product quality, that is, those aspects of activity that are difficult to assess.

Within the framework of the balanced scorecard, there are four main aspects of the company’s work, which provide answers to the following questions:

how the company is assessed by shareholders (“Finance”);
how clients evaluate it (“Clients”);
how to improve the quality of activities (“Personnel”);
what processes can provide the company with an exceptional position in the market (“Business Processes”).

What to choose

Which approach to choose depends on the level of business. For small companies, the classic approach is more suitable, since it will not require significant costs for attracting consultants and implementing an information system. In the future, it will be possible to refine the created classical system by including non-financial criteria.

Large companies should use the balanced scorecard, as it gives a more complete picture of the company's performance.

How to develop KPIs for finance employees

The editors of the CFO System have prepared motivation schemes and KPI performance reports for financial service employees. Download and use in your company examples of C&I for the chief accountant and other employees of the accounting department, employees, budgeting department and other departments.

How to choose key indicators

To determine which KPIs to use, you need to:

Identify groups of indicators and distribute the responsibility of managers at different management levels for each group.
Make the most detailed list of KPIs used by management.
Select the criteria that best characterize the achievement of strategic goals.
Formalize algorithms for calculating each of the keys.

Identification of groups of indicators

If a company uses a classic approach to developing a KPI system, then the following groups need to be distinguished:

;

Responsibility for each of the groups will be distributed among managers at all levels of management. For example, the general director is responsible for the whole, while management should be delegated to department heads.

When using a model that includes both financial and non-financial KPIs, the following groups of key performance indicators can be distinguished:

financial and economic – for business in general;
customer satisfaction;
main and auxiliary business processes (see how to describe them);
staff efficiency.

After identifying the main groups, it is necessary to determine who will be responsible for their implementation. For an example of the distribution of responsibilities, see Table 1.

Table 1. Groups of indicators and distribution of responsibility

Detailing

The list of keys for each of the selected groups should be as detailed as possible. Ask the managers who will be responsible for a particular group to create such a list. For example, the CEO should indicate what criteria he uses to evaluate “shareholder(s) satisfaction.”

As a result, the general list of KPIs may include several hundred criteria. It is obvious that the construction of such a system is unjustified, since it will lead to a significant increase in the workload on personnel associated with the collection and processing of data necessary for calculations. Therefore, from the general list, you need to select the data that management really needs for management and will allow you to assess the degree to which your goals have been achieved, and will not just be monitored “for information.”

KPI selection

To select KPIs, form an expert group. As a rule, it includes division directors and department heads. Their task is to characterize each of the indicators according to the following criteria:

does it reflect the degree to which the company’s strategic goals are achieved;
is it clear, first of all, to those managers who will have to make decisions based on it;
Is it useful for decision making?

In addition to those listed, other criteria may be applied, for example, the ability to use performance indicators in planning or analysis.

The assessment procedure can be formalized based on the use of a point assessment system. For example, 1 point – the criterion is not met, 2 points – partially meets the given criterion, 3 points – satisfies the given criterion. The indicators that received the highest number of points during the expert assessment will be included in the CI system.

As a result, a “short” list of key performance indicators of the company will appear (see Table 2).

table 2. Example of a CPI trading company(fragment)

KPI group	Key performance indicators	Responsibility
Satisfaction indicators
Shareholders	Return on total assets, return on equity, return on sales or profit margin, return on cash flow	CEO
	Sales market share, number of defects in products, number of claims from customer-buyers, turnover of active customer-buyers, duration of the functional cycle of order fulfillment, availability of inventory for customers
Staff	Depending on the specifics, as well as on the information needs of managers, management reporting can be generated in a variety of analytics (by brands, product groups, categories of personnel, types of assets, sales channels, etc.). Conclusion In the process of creating a KPI system, you will have to face various problems: employee resistance, the need to adjust accounting policies for accounting and management accounting purposes; ensure the collection of the necessary data to calculate the identified key performance indicators; etc. However, organizations that have implemented KPIs, as a rule, achieve good results, since the company creates a system of performance indicators that is understandable to management, and responsibility for management is delegated to a wide range of managers. After implementing a KPI system, it is important to constantly analyze its relevance, since the company’s business processes, strategic goals, and external environment may change, so some indicators may lose their relevance, while others may lead to unplanned results.

The main responsibility of the company's top management is to create a strategy, determine the goals and objectives of the enterprise. The implementation of these goals rests on the shoulders of employees from structural divisions. A company's growth can be jeopardized if information is poorly shared between employees and management. This is mainly due to information overload of management and the inability to rationally assess the situation in work positions. This, in turn, affects the quality of control over the actions of personnel and the implementation of the strategy.

Impact of KPIs on the company

If the staff does not have specific strategic goals, and there is also no sufficient motivation, this leads to the fact that employees are not able to determine the right course and are not able to act for the benefit of the company's development. This inconsistency often leads to waste of company resources on tasks that are secondary. Such problems arise quite often, and many businesses around the world suffer from them.

It is difficult to call a self-sufficient enterprise strategy. Management's aspirations are to achieve goals by setting tasks for personnel, as well as quality control over the quality of work performed. In the chain of elements that are necessary to realize these goals, which constitute the management cycle, there are two elements:

That is why many modern entrepreneurs are interested in KPI (key performance indicators), what it is and how it can help in management. After all, the weak link in the chain shown above is, in fact, the connection between management and staff. If there are failures in its work, then decisions will be made taking into account information that is incomplete. According to some managers, the guarantee of the correctness of their decisions depends on the amount of information collected. But in this case, this is a wrong opinion, since the time required to evaluate information increases, and its quantity is not at all responsible for its quality.

Management Tools

Any management needs a tool that allows them to obtain high-quality and adequate information for decision-making. Western companies have long been using key performance indicators and a balanced scorecard for this purpose.

KPIs are considered a system of indicators (financial and non-financial) that have an impact on the qualitative and quantitative change in the result of personnel work or the result that is expected. It includes the coefficients of each controlled object, as well as the methodology for their evaluation. This allows you to focus on achieving strategic goals, based on an assessment of the organization's performance.

The assessment of key performance indicators is precisely the tool that can show how well management is carried out in relation to the results relative to the set goals, taking into account the cost and position of the company in the market. It is worth keeping in mind that this tool can facilitate the decision-making process of management thanks to complete and high-quality information, but it cannot solve serious systematic problems of the organization. This technique does not provide ready-made solutions, it only identifies the area in which the problem arises.

The transition to new methods of progressive company management is justified by the fact that old methods, including increasing the scale and pace of production, as well as improving product quality, do not create the necessary competitiveness. Thanks to modern management tools, an organization can quickly respond to any change occurring in the market.

The main objective of the KPI system together with the balanced scorecard is to move the company into a comprehensive set of necessary indicators that can highlight the main elements of management and measurement. Thanks to this set, an organization strategy is formed that is able to include all the necessary qualitative and quantitative characteristics in order to promptly inform workers about the factors that influence present and future success. Having formulated the results that should be achieved, the organization not only defines the goal, but also works on the conditions that allow it to be achieved better and faster.

It is not the amount of information that is important, but its objectivity, accuracy and relevance in order to correctly carry out all the necessary calculations. The concept of the balanced scorecard is that traditional financial and economic indicators are not enough for the success of a strategy. To solve problems, it is necessary to better balance key performance indicators, taking into account various planes, in order to control the factors that influence these indicators. You should not pay much attention to past achievements; you should evaluate future results. If you focus indicators on only one area of activity, this will undoubtedly have a bad effect on the final result.

System implementation

To implement a system in an enterprise, there are certain steps that must be performed sequentially. Violation of this sequence can negatively affect the final result.

The first stage is the formation of a strategy

A clearly formulated strategy should describe the main steps to achieve the desired results and goals. It needs to be broken down into specific initiatives, with tasks assigned to individual departments of employees. Thanks to this, significant savings occur not only in money, but also in time.

The second stage is identifying key factors

Here it is necessary to determine the most important factors, or rather, the parameters of aspects of economic and economic activity that have an impact on the implementation of the assigned tasks and the implementation of the strategy. These factors have a significant impact on success.

Stage three – key performance indicators

Here the activities necessary for the strategy to be successfully implemented are determined. KPIs are used as a tool to determine them. It is worth highlighting only the most sensitive of them, without using secondary indicators. They should be stimulating for staff. Among the main requirements for the system of key performance indicators are:

Clear limits on the number of indicators.
They must be uniform for the entire company.
Possibility of obtaining a digital format of the indicator.
It must be directly related to the factors influencing success.
Metrics should motivate employees to meet the goals required by the organization.

Key performance indicators: examples

Let's take, as an example, a well workover shop. The strategic goal for this organization will be to increase the level of product production, which will be expressed in well production and reduce the factors that provoke the loss of the product and reduce its cost. In this regard, KPIs should be set so that they reflect not only the goals of the company itself, but also address issues regarding a specific division. If repairs are carried out, the well’s operation will be stopped, therefore, it is worth considering the costs caused by the shutdown.

The structure of key performance indicators for a given division may have the following structure:

Thus, using KPIs (key performance indicators), examples of which are discussed above, employees are encouraged to reduce costs and increase oil production. This not only corresponds to the overall goals of the company, but also affects the quality of work of a particular department.

The fourth stage is working with a balanced scorecard

This stage involves the development of a generalized system that includes financial and non-financial indicators. This takes into account both the object of control and the assessment of factors influencing the overall picture of the enterprise’s performance.

Fifth stage – selection of a technical solution for implementing the tool

At this stage, the data source through which the indicators will be filled is determined; it must satisfy all the conditions for the reliability of the information received. It is necessary to first create a strategy that allows you to implement a new management tool. Decide on goals, taking into account how positively they will affect the state of the company. It is also necessary to configure the information flow in order to correctly calculate all indicators. There are still many points necessary to achieve the main goals and objectives of the organization, which key performance indicators will help to cope with.

KPI (Key Performance Indicators) - “key performance indicators”, but more often translated as “key performance indicators”. KPI is one of the tools with which you can analyze how effectively staff works to achieve the company's goals.

KPI indicators are often used by larger companies (not where the owner, director, seller and loader are the same person), but on the contrary, when the company has a large number of employees and branches. The use of “kipiai” greatly simplifies monitoring the performance of all departments of the company. Having key performance indicators gives us the opportunity to manage the process and make changes to it. Set goals for staff and motivate them to achieve them.

Let's look at an example of key performance indicators. You are the owner of a large household appliances store and you have 12 sales managers on your staff. The performance of each manager for the month can be assessed according to the following criteria:

what % of clients with whom the manager communicated made a purchase;
average customer bill;
fulfillment of the sales plan (for example, the minimum monthly limit is 350,000 rubles, and the manager’s salary will depend on the percentage by which he exceeds the plan);

If, for example, you need to sell blenders of a certain model, you can set a plan for each manager of at least 5 units; if more, then for each “extra” unit the seller receives 3% of its cost. Thus, the goal is achieved to sell a certain product and motivate managers to do so. As practice shows, the optimal number of KPI criteria for one employee is from 5 to 8.

2. Types and principles of KPI

Types of key performance indicators:

Result KPI – quantitative and qualitative indicators of results;
Cost KPI – amount of resource expenditure;
KPI of functioning - how well the execution process corresponds to the established algorithm;
Performance KPIs are derived indicators that characterize the relationship between the result obtained and the time spent to obtain it;
Efficiency KPIs (performance indicators) are derived indicators that characterize the ratio of the results obtained to the expenditure of resources.

There are principles to follow when developing key performance indicators. The costs of measuring performance indicators should not exceed the management benefits of using the indicator. You won’t hire a person who will count the number and duration of the manager’s calls; the result will not justify the costs. For a more accurate result and the possibility of comparison, indicators should be measurable and as simple as possible, understood equally by each department, in order to avoid misinformation. And, most importantly, the KPIs are necessary; if we do nothing based on the results of their measurement, then in this case they are meaningless.

3. Pros and cons of KPIs

The main advantages of KPI include:

fairness, transparency and comparability of results (management and staff see who works and earns how much);
adjusting the employee’s work according to the lagging indicator;
involvement of personnel in achieving the goals of the enterprise;
quality control of performance of duties.

Despite all the positive aspects of the KPI system, it is not universal. Not all indicators in the work of personnel can be measured quantitatively, and therefore each business has its own ways of assessing efficiency, and finding them will require a large investment of time, labor and finances.

4. How to calculate KPI. Example

There is no single formula for calculating KPIs, since each company has its own specifics and, therefore, its own “kipiai”. Let's look at the example of calculating the salary of a sales manager, taking into account his KPIs in the Kotelok online store. Rate 7,000 rub. +2% from personal sales (800,000*0.02=16,000 rub.) + bonus for fulfilling the plan for the number of new clients (2,000 rub.) + bonus for fulfilling the enterprise plan (for example, the plan is 100% fulfilled - 5,000 rub. , by 70% - 3,500 rubles) in our case, by 80% - 4,000 rubles. In total, at the end of the month the manager will receive a salary of 29,000 rubles. This counting system motivates managers to sell to existing customers and attract new ones.

5. What are KPIs in sales

In the sales field, the main key performance indicators for the sales manager and sales department are:

1. Sales volume. The manager is given a plan for a certain period of time (month, quarter, year). For example, in March the manager must make sales of 1,300,000 rubles.

2. Number of sales. Number of customers who made a purchase (number of receipts).

3. Traffic. The number of customers who learned about your product are potential buyers. Of course, attracting traffic is the task of marketers, but the seller himself can also influence the flow of customers, for example, through word of mouth.

4. Average check. It is implemented in order to encourage the manager to sell additional products. For example, purchase a heat-resistant glass plate or baking dishes for the oven.

You can develop a KPI system yourself, but this will require a lot of effort and more than one dog to eat. Most large companies still prefer to entrust the construction of a “kipai” system to professionals with extensive experience in this field. If you need help implementing KPIs in your company, please contact us, we will be happy to help!

Kipiai, or key performance indicators, is a unique system that has recently come to Russian business. Today, there is no more reliable method with which to evaluate the efficiency of an enterprise, so the use of this system is practiced not only in Russia, but throughout the world.

Concept of KPI

First, let's fully address the question of what it is - KPI, or key performance indicators.

KPI is a unique system with which you can calculate the performance of each individual employee of the organization. Thanks to such a system, it is possible not only to understand how effective the activities of employees are, but also to motivate them to improve their work skills. The most optimal performance indicators for each individual employee should not exceed the number 5.

To understand how to operate this system correctly, it is necessary to more carefully and deeply study the types of performance indicators, as well as consider examples of KPIs.

Types and groups of KPIs

Kipiai indicators are usually divided into several subgroups, based on the results obtained when calculating a certain area of activity.

Financial expenses.
Company performance, which involves calculating kpi as a percentage. This percentage shows how high the capacity utilization of a particular enterprise is.
Productivity of the company. This subgroup of KPI performance indicators is based on a comparison of certain data (for example, cost items and revenue for a certain period of time).
Final calculations, which are based on the quantitative expression of results relating to the activities of company employees.

A key performance indicator is built on several principles. If you do not take them into account, the data obtained will be unreliable. These are the principles:

All indicators must be measured in quantitative numbers.
The data obtained must be directly related to the activities of the company.
The results should not be costly, both in terms of time and resources.

Previously, we looked at the question of what a KPI is, dividing it into 3 small subgroups. However, the gradation does not end there, since this system also has its own varieties. There are two of them in total. These are operational and strategic KPIs. Let's first figure out what kind of operational KPI system this is.

Operating indicators are indicators that can be used to assess the effectiveness of a company’s activities at the moment. Simply put, the data obtained when calculating kpi reflects how well the company’s employees work in the current period of time.

In addition, operational systems help to compare the tasks performed by workers with the conditions that were created for this. Based on the results obtained, the management of the enterprise can assess the quality of the manufactured product, the conditions for its delivery and further distribution.

What is a strategic KPI indicator? Such indicators reflect the performance of a company over a certain period of time. With their help, you can find shortcomings in the work of personnel and adjust their activities for the next period of time (for example, for the next month, quarter, six months, etc.).

In addition to the quality of employee work, financial data can also be processed. Based on the results of the KPI calculation, cash flows are characterized, which help to understand how profitable the organization itself is and how much demand the products produced by it are in.

Areas of application of KPI and its calculation

Since we have figured out what kpi is, or, in simple words, key performance indicators, we need to move on to the next, no less important, question: where and why are they used? And also consider the formula by which they are calculated.

A performance indicator is a numerical measurement of set (and completed) goals and objectives that play an important role in the successful promotion of a business. Thanks to the compiled report, which takes as a basis all the necessary indicators (they were discussed above), the organization’s management has the opportunity to fully assess how the developed plan was implemented, as well as what was achieved over a certain period.

KPIs are used in various areas of business. For each of them there is a list of indicators that are processed, and on the basis of which an indicator is calculated that reflects the efficiency of the enterprise.

Sales area

To increase your wealth, you need to understand what KPIs are in sales and the important role they play. These indicators can be calculated based on:

financial profit received for a certain period;
revenue from sales carried out by the company;
cost of goods produced;
percentage of low-quality goods;
amounts of current assets;
the total cost of all inventories of the enterprise.

KPI indicators in retail trade are based on 5 basic principles:

percentage of sales for 1 hour or day of operation of a retail outlet;
the average amount of money paid by the buyer for the goods (this amount is calculated based on punched checks);
quantity of products sold at one time;
the ratio of employee salaries to revenue from the sale of goods;
sales conversions.

Thus, having received all the necessary calculations, you can quickly adjust the work of the staff, significantly increasing the number of transactions carried out, which, in turn, helps to increase the store’s income.

Manufacturing industry

What is the production indicator in production, and on what basis is it calculated? First of all, when calculating the efficiency coefficient, the following is taken as a basis:

indicators of the average daily consumption of raw materials from which products are made;
volumes of raw materials consumed and remaining in stock;
volumes of work in progress;
employee performance;
various production costs;
cost of equipment repair;
conditions, terms and cost of storage of finished products.

To get the right data, you need to know how to calculate KPIs. There is a special formula for this:

(qf/ qpl)×100%

Now let's decipher the indicators:

qf – the actual volume of all sales made by the company;
qpl – sales volume that is just planned to be realized.

The data obtained through this form is the so-called performance criterion.

Examples of KPIs

To fully understand what kipiai is, let's look at some examples of key performance indicators. For a better understanding of the essence, each of the professions that is taken into account in the calculation will be considered separately. The table below indicates not only the type of activity, but also the indicator on the basis of which the efficiency criterion is calculated.

Number	Job title	Indicator for calculation	Formula for calculation
1	Head of Marketing Department	The total percentage of the previously developed plan.	The general calculation formula described above.
2	Marketer	Total percentage of all brands on the market	Calculated based on data from all third party marketing firms.
3	Chief Accountant	Timely submission of the enterprise income statement to the tax service.	Data received from the tax authority.
4	Accountant	Total percentage of completed financial transactions	This profession has its own formula for calculating kipiai: (qpsr/qptot) × 100%, where the first indicator in brackets implies the number of financial transactions that were completed on time, and the second – the overall results relating to all payment transactions.
5	Head of the legal department	The total number of lawsuits won is taken as a basis.	The ratio of the number of won cases to the total number of trials. The result obtained is multiplied by 100%.
6	Lawyer	The amount of money that was collected from other businesses in favor of the organization where the person works. The amount of money that was saved by the company is also taken into account.	All data from reports compiled by the legal department are taken into account.

If we again take the example of the KPI of a sales manager as a basis, then with the help of the data obtained after the calculation, the head of the management department will be able to identify not only positive, but also negative aspects in the activities of his subordinates. So, he will know exactly how many necessary calls and meetings the sales manager made, whether they were effective, how many people became regular customers, etc.

If the data obtained does not correspond to the developed plan, this means that the person engaged in this type of activity lacks either knowledge and skills, or perseverance and desire to work.

All the examples of KPIs, or key performance indicators, discussed above fully reflect the essence of this concept. Of course, it’s difficult to immediately understand all these subtleties (especially for a novice businessman). However, it is better to spend a little time on an in-depth study of this important topic than to incur financial losses that could seriously harm the development and successful promotion of the business.

To evaluate the performance of certain categories of employees, Russian companies use a staff motivation system based on KPIs (performance indicators) developed within the organization. What these indicators are, how to calculate KPIs and what is the methodology for determining efficiency, we will explain in this article.

The essence of the phenomenon

KPIs are key performance indicators that evaluate the performance of each employee. They also help analyze the work of the entire company, achievements over a certain period and are an excellent motivator for quality work. The main thing is the correct development of a KPI system for a specific position, taking into account all the nuances of an employee’s activities in the company.

Universal performance indicators cannot be applied to all positions, because they simply cannot meet expectations. For example, it is almost impossible to create KPIs for an accountant. Developing a KPI-based motivation system is an analytical work that includes compiling KPIs and analyzing the results.

It is important to consider the following:

There should be few performance indicators, otherwise the calculations will be confusing and the evaluation purpose will not be achieved.
Each KPI indicator must correspond to the final goal.
The established KPI indicators must be guaranteed to be achievable and clearly correspond to the sphere of influence and responsibility of the employee (position).
It is possible and necessary to prescribe employee motivation only on the basis of key performance indicators, then the employee will understand what is expected of him and will move towards a clear goal.

What indicators are there?

Often in companies and enterprises, KPI indicators are classified as operational and those that lag behind the result.

Long-term indicators show the result after a certain time, while operational (leading) indicators allow you to evaluate the effectiveness of work very quickly.

Types of indicators in business processes:

Result performance indicators are KPIs of profit, revenue and sales for a specific period.
Cost KPIs help evaluate achievements taking into account financial and time costs.
Performance indicators reflect the correctness of the employee’s activities, his work system in accordance with the regulations and algorithms of his position.
Efficiency KPIs show the level of ratio between the result and the costs for it in different options.
The productivity efficiency ratio gives an understanding of the result achieved in a certain ratio to the time spent.

When calculating KPIs, you should immediately formulate a goal and priorities for the chosen position. In each specific case, they are calculated separately, depending on the company’s field of activity. Assessment methods and a specific calculation formula for competent assessment of results depend on this.

We calculate KPI indicators

To understand the picture of developing KPI indicators, we will give an example that indicates an algorithm of actions.

Stages of developing KPI indicators:

Team formation, selection of working group members and research for each position.
Drawing up a methodology for action. Based on the analysis, models of a system of performance indicators for positions are created, regulations are prescribed, and indicators are developed and tested.
Implementation of a KPI system: established performance indicators are integrated into the software, and employees are informed about the conditions and requirements upon signature.
The final stage of development: monitoring the implementation of KPIs, adjusting indicators during the test period.

In practice, 2 methods of KPI development are most often used: process and functional methods.

The process approach is based on performance indicators based on the internal business processes of the enterprise.

The functional approach is based on the very structure of production or management of the organization, the functional responsibilities of the position, department, and branches.

We give in the table an example of calculation of two methods for developing performance indicators.

Process method	Functional method
Purpose of the business process (sales)
Dynamics of new clients (specific number)	Profit Profitability Increase in assets in the company
Goal of the business process (effectiveness)
Dynamics of growth in cash reserves turnover in relation to the previous period	Number of loyal customers Sales volumes for the period in monetary terms
Business process goal for customer satisfaction
Minimizing the number of product returns Reducing order completion time (placement of order and completion of purchase)	Number of new clients Reducing the time spent servicing one client
Purpose of HR business process
Quick selection of new managers	Percentage of closed and open vacancies for a specific period

For example

An example of KPI calculation for one employee is given in the table of the sales department manager, where the indicator index is present.

https://yadi.sk/i/jomsvYOq3Kyb2z

From this example and the KPI index, we can see that this sales manager exceeded the plan by 6% and, accordingly, he is entitled to a reward agreed upon in his motivation.

To calculate the KPI of a position, you can use several performance indicators and calculate motivation using the formula:

Salary + K1 + K2 + K3. Where K1, K2, K3 are KPI indicators (manager’s salary + established % of sales + % of the number of attracted clients for the period (month) + agreed bonus for quality customer service).

In this simple way, you can enter any KPI indicators into the formula, which can be calculated as a result.

Eventually

To calculate an employee's performance, it is necessary to carefully approach the assessment and objectives of the position, and this will require analyzing the level of performance and sphere of influence of the employee in a particular organization. Having determined the KPI indicators, you can prescribe a motivation system on which the employee’s salary will depend.