17/01/2020 KPIs for measuring employee performance - Timely

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KPIs for measuring
employee performance
Written 18 April, 2018, 4 minutes to read

Measuring employee performance is an essential part of assessing your

businessʼ financial health. Since your people are your biggest asset, you
need to ensure your investment in them is actually paying off. Weʼve put
together some of the best universal KPIs businesses can use to quickly
check high-level employee productivity and effectiveness.

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 The value of employee
17/01/2020 KPIs for measuring employee performance - Timely

Timely
performance KPIs
Make no mistake – these KPIs should not be used as the basis for
assessing the individual value of your employees. Performance appraisals
depend on a broad application of qualitative and quantitative feedback
which donʼt just focus on profit. Your employeesʼ worth cannot be reduced
down to a number, and that is not the purpose of these KPIs.
These employee KPIs are purely intended as high-level markers to indicate
overall employee profitability. They allow businesses – and agencies in
particular – to quickly identify potential problems needing further
investigation, which are often the result of wider operational issues and
workflow bottlenecks.

Universal employee
performance KPIs
Here are some of the best universal KPIs weʼve come across:
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 Revenue per employee
17/01/2020 KPIs for measuring employee performance - Timely

Timely
= Revenue/number of employees
This is the most basic indicator of what each employee brings in. Itʼs useful
for ensuring your workforce arenʼt costing you more than theyʼre making
you. Itʼs often used to gauge the profitability of companies.

Profit per employee

= Total profit/number of employees
Similar to the above, this employee performance KPI breaks down raw
profitability (free from expenses), which may be useful for companies with
remote or freelance workers who donʼt incur the same expenses as in-
house employees.

Employee billable percentage

= (Total weekly billable hours logged/total weekly hours logged) x 100
Also know as a "utilization rate", this KPI shows you the overall ratio of
directly profitable work to internal cost each employee engages in.
Different companies have very different stances on the value relationship
between “billable” and “non-billable” time, and weʼre of the opinion they
are equally important. However you view it, you need to see how much
time your team spends on non-billable time to maintain a healthy balance.

Average task completion rate

= Total time to complete the same task (across set timeframe)/number of
times performed
Again, this should be taken as a rough guide to inform the overall
efficiency of your team. Itʼs useful for understanding how long different

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17/01/2020 KPIs for measuring employee performance - Timely

phases of a project usually take your employees, so you can improve

Timely
budget estimates and price fairly for your work.

Overtime per employee

= Total hours overtime/number of employees
The average overtime metric can be interpreted in a whole of different
ways. Some companies use it to understand the health of their employees
– both in terms of engagement and physical wellbeing. But it shouldnʼt be
taken as an indicator of employee dedication, since “presenteeism” alone
doesnʼt translate to “quality of work” or “enthusiasm”. If your staff are
constantly performing overtime, you might actually need to increase your
workforce. In the interests of your company culture – whether you embrace
or reject overtime – itʼs a good idea to keep an eye on it.

Employee capacity
= weekly capacity - total hours logged
Employee capacity is a great measure of productive performance. Similar
to overtime, it shows you who is close to burnout and who has room to
take on a little more work. Itʼs super helpful for distributing work evenly
across your team and understanding who needs extra support.

How to track employee

performance KPIs
Many companies work across complex Excel sheets to get the figures to
track these employee KPIs. But apps do exist to track them for you in the
background.
Automatic time trackers like Timely can track all of the figures needed to
work out the above KPIs while you work. They log the time spent on
different tasks and projects, show logged time against an employeeʼs
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17/01/2020 KPIs for measuring employee performance - Timely

weekly capacity, and break down billable vs. non-billable time in a simple
dashboard. Timely

Get real-time KPI updates with

automatic time tracking
Employee Management Productivity Time Management

Try Timely, the world's first fully

automatic time tracking service →

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17/01/2020 KPIs for measuring employee performance - Timely

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17/01/2020 KPIs for measuring employee performance - Timely

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