of 1,500 site visits per month, but in fact the web resource was
Posted: Wed Jan 22, 2025 6:57 am
visited by 1,600 people. Provided that the base was the number of 1,000 visits, we will get the following example: ((1,600 - 1,000) / (1,500 - 1,000)) * 100% = 120%. The employee's performance for the selected indicator exceeds one hundred percent, which means that he met the management's expectations. Now let's move on to the second evaluation criterion.
Let's agree that the norm for the number of positive reviews is 20. In fact, we have 15, and the base is 10. We calculate: ((15 - 10) / (20 - 10)) * 100% = 50%. The specialist did a worse job with this task, but its priority is lower than the first one. To determine the final result, we convert 50% to a decimal fraction and get 0.5. We multiply this number by the weight of this KPI: 0.5 * 0.5 = 0.25. In total, the task is completed by 25%.
Next, we need to calculate the overall coefficient, for this we divide the sum of the results by the number of tasks: (120% + 25%)/2 = 72.5%. This lets us know that the Internet marketer did not fully fulfill the plan.
Salary calculation
There are several principles of organizing remuneration according to the kipiai system. You can set bonus coefficients for certain KPI indices in advance: for example, if the plan is fulfilled by less than 70%, the bonus is not paid at all, with a value from 71 to 75 percent, the bonus coefficient will be 0.5, from 75 to 80 - 0.6, and so on. If the company is engaged in sales, each manager can be awarded a percentage of sales, which will grow or fall depending on the percentage of plan implementation.
According to the third scheme, the percentage by which the employee fulfilled the plan also reflects the percentage of the bonus part of the salary. Let's assume that an Internet marketer has a salary of 50,000. Of this, the fixed part (salary) is 30,000, and the variable part is 20,000. If the plan is fulfilled by 72.5%, the specialist will receive a full salary and 72.5% of the bonus. Let's calculate the percentage: 20,000 * 0.725 = 14,500. The employee's salary will total 44,500.
In what areas is the KPI indicator used?
Initially, the kipiai method was used only in sales. Now it is used everywhere, as it helps to simplify, improve and make more objective the process of evaluating the company's activities. However, as we have already said, not all areas of business will justify the implementation of this system.
KPIs are not suitable for creative work: the work of artists, musicians, writers and other creative people usually does not lend itself to such strict mathematical measurement. KPIs should also not be implemented in departments on whose actions others depend: system administrators, electricians, plumbers and other specialists whose tasks include eliminating belgium whatsapp number database various malfunctions.
In addition, KPI is designed, rather, for large companies. If you have a small organization, then its managers can cope with its goals on their own. However, when scaling production, expanding the staff and increasing cash turnover, the implementation of this method will be more than useful.
Below we will suggest which key indicators can be used in different areas of business.
Examples of industries where KPIs are used.
Human Resources Management
The KPI metric for the HR department includes many specific indicators. Here it is necessary to take into account the staff turnover, the speed of filling a vacancy (the period from the receipt of an application until the employee starts work), the number of dismissals and those who resigned of their own accord, the number of absences. The HR department analyzes the degree of satisfaction with working conditions, employee involvement in the organization's activities, labor inspection violations, and much more.
Production
Key performance indicators in manufacturing may be as follows:
raw material consumption;
the number of new products in the range;
implementation of the production budget;
volume of unsold stock;
cost of equipment repair;
speed of production of one unit of product, etc.
Let's agree that the norm for the number of positive reviews is 20. In fact, we have 15, and the base is 10. We calculate: ((15 - 10) / (20 - 10)) * 100% = 50%. The specialist did a worse job with this task, but its priority is lower than the first one. To determine the final result, we convert 50% to a decimal fraction and get 0.5. We multiply this number by the weight of this KPI: 0.5 * 0.5 = 0.25. In total, the task is completed by 25%.
Next, we need to calculate the overall coefficient, for this we divide the sum of the results by the number of tasks: (120% + 25%)/2 = 72.5%. This lets us know that the Internet marketer did not fully fulfill the plan.
Salary calculation
There are several principles of organizing remuneration according to the kipiai system. You can set bonus coefficients for certain KPI indices in advance: for example, if the plan is fulfilled by less than 70%, the bonus is not paid at all, with a value from 71 to 75 percent, the bonus coefficient will be 0.5, from 75 to 80 - 0.6, and so on. If the company is engaged in sales, each manager can be awarded a percentage of sales, which will grow or fall depending on the percentage of plan implementation.
According to the third scheme, the percentage by which the employee fulfilled the plan also reflects the percentage of the bonus part of the salary. Let's assume that an Internet marketer has a salary of 50,000. Of this, the fixed part (salary) is 30,000, and the variable part is 20,000. If the plan is fulfilled by 72.5%, the specialist will receive a full salary and 72.5% of the bonus. Let's calculate the percentage: 20,000 * 0.725 = 14,500. The employee's salary will total 44,500.
In what areas is the KPI indicator used?
Initially, the kipiai method was used only in sales. Now it is used everywhere, as it helps to simplify, improve and make more objective the process of evaluating the company's activities. However, as we have already said, not all areas of business will justify the implementation of this system.
KPIs are not suitable for creative work: the work of artists, musicians, writers and other creative people usually does not lend itself to such strict mathematical measurement. KPIs should also not be implemented in departments on whose actions others depend: system administrators, electricians, plumbers and other specialists whose tasks include eliminating belgium whatsapp number database various malfunctions.
In addition, KPI is designed, rather, for large companies. If you have a small organization, then its managers can cope with its goals on their own. However, when scaling production, expanding the staff and increasing cash turnover, the implementation of this method will be more than useful.
Below we will suggest which key indicators can be used in different areas of business.
Examples of industries where KPIs are used.
Human Resources Management
The KPI metric for the HR department includes many specific indicators. Here it is necessary to take into account the staff turnover, the speed of filling a vacancy (the period from the receipt of an application until the employee starts work), the number of dismissals and those who resigned of their own accord, the number of absences. The HR department analyzes the degree of satisfaction with working conditions, employee involvement in the organization's activities, labor inspection violations, and much more.
Production
Key performance indicators in manufacturing may be as follows:
raw material consumption;
the number of new products in the range;
implementation of the production budget;
volume of unsold stock;
cost of equipment repair;
speed of production of one unit of product, etc.