Binding to an employee
Posted: Sun Dec 22, 2024 9:04 am
Before calculating the sales manager's KPI, it is necessary to create conditions under which the accrual or deprivation of a bonus depends solely on the work of a specific employee, and not on the team as a whole.
A manager's personal KPI cannot be linked to the overall sales volume. In this case, particularly diligent employees will not see motivation, because their bonus will be the same as that of email database indonesia their less efficient colleagues.
If in a workspace one employee is responsible for sending out informational letters to the client, and the second one is engaged in “finishing off” clients, then:
It is impossible to approve the number of closed deals as a KPI for both managers. The first employee will understand that his bonus depends only on the quality of the second one's work, which means he does not need to try especially hard.
You can set up a system where the first manager will be responsible for how many people read the letter and call the phone number specified in the message. His KPI will be the number of opened letters and calls.
Achievability
You cannot set unattainable performance indicators. You need to rely on the current realities in which the company exists. It is important to take into account the average sales volume per month, the average number of transactions per employee.
Achievability of KPIs
Inflated indicators do not stimulate workers to active work, but only instill confidence that they will not reach them anyway. Low indicators also have a negative effect.
For example, a furniture manufacturing company sells goods worth 500,000 rubles per month:
It is wrong to set a new sales plan of 700,000 rubles with such input data. It is simply impossible to achieve these figures in a short period of time. The employees will be left without a bonus even in conditions of increased productivity.
The right decision would be to set the bar at the same 500,000 rubles, and to allocate a bonus for anything above that. Its size should be directly proportional to the achievement.
Measurability
All KPIs for which a bonus is paid must be measurable. If something in business needs to be taken into account, but it cannot be calculated (for example, customer loyalty), then when paying a bonus, these indicators should have a minimum specific weight.
Wrong approach: KPI of employees is assessed by heads of the management department. 70% of bonuses depend on their decision. It is quite obvious that employees will start to earn loyalty from managers not only in the workplace, but also outside of work they will try to get a friend-patron at work.
The right approach: it would be better to set the main KPI as sales volume, average check amount or another calculable indicator. And the assessment should be given not so much by colleagues as by the clients with whom the manager worked.
A manager's personal KPI cannot be linked to the overall sales volume. In this case, particularly diligent employees will not see motivation, because their bonus will be the same as that of email database indonesia their less efficient colleagues.
If in a workspace one employee is responsible for sending out informational letters to the client, and the second one is engaged in “finishing off” clients, then:
It is impossible to approve the number of closed deals as a KPI for both managers. The first employee will understand that his bonus depends only on the quality of the second one's work, which means he does not need to try especially hard.
You can set up a system where the first manager will be responsible for how many people read the letter and call the phone number specified in the message. His KPI will be the number of opened letters and calls.
Achievability
You cannot set unattainable performance indicators. You need to rely on the current realities in which the company exists. It is important to take into account the average sales volume per month, the average number of transactions per employee.
Achievability of KPIs
Inflated indicators do not stimulate workers to active work, but only instill confidence that they will not reach them anyway. Low indicators also have a negative effect.
For example, a furniture manufacturing company sells goods worth 500,000 rubles per month:
It is wrong to set a new sales plan of 700,000 rubles with such input data. It is simply impossible to achieve these figures in a short period of time. The employees will be left without a bonus even in conditions of increased productivity.
The right decision would be to set the bar at the same 500,000 rubles, and to allocate a bonus for anything above that. Its size should be directly proportional to the achievement.
Measurability
All KPIs for which a bonus is paid must be measurable. If something in business needs to be taken into account, but it cannot be calculated (for example, customer loyalty), then when paying a bonus, these indicators should have a minimum specific weight.
Wrong approach: KPI of employees is assessed by heads of the management department. 70% of bonuses depend on their decision. It is quite obvious that employees will start to earn loyalty from managers not only in the workplace, but also outside of work they will try to get a friend-patron at work.
The right approach: it would be better to set the main KPI as sales volume, average check amount or another calculable indicator. And the assessment should be given not so much by colleagues as by the clients with whom the manager worked.