Workforce KPIs (key performance indicators) are measurements designed to help you understand how your employees and your business are performing. In this blog post, we are exploring the best KPI metrics to evaluate the success of your employees. Their success is your business's success, so it is critical that you have a keen understanding of how your employees are performing and how to measure workforce management.
Key performance indicators are important because they give you values to compare against in order to benchmark and continuously check on the success of your business operations. Without KPIs, it is difficult to truly define success. When you outline goals and strategies for reaching them, KPIs will be your guideposts for referencing your progress along the way.
Four reasons why workforce management KPIs are important for businesses:
Your employees’ engagement is highly linked to their performance. It’s simple: happier employees perform better. Start by maintaining a high-level look into your employee turnover rate.
# of employees who left in a given month / # of employees you had at the beginning of the month= employee turnover rate
If the result of that equation is more than 10% you need to re-evaluate your workforce management practices. In fact, companies with engaged employees outperform competitors by up to 202% and highly-engaged employees are 87% less likely to leave their company.
This KPI metric provides you insight into how expensive it is to run your business. By dividing your business's annual sales by its total employees you can see how efficient your business is running.
Businesses with higher sales-per-employee figures tend to be more efficient and have higher profit margins than those with lower figures, according to Investopedia.
Conduct employee surveys
By offering anonymous and identifiable surveys, you can get a transparent look into your staff satisfaction levels. Provide your team with the opportunity to give candid feedback through an online survey.
Based on their replies, you can identify trends and anomalies when it comes to needing to adjust your management strategies. This workforce KPI will also help you set benchmarks and objectives when you aggregate the information across multiple locations, quickly showing you trends and areas for improvement.
Look into sales KPI metrics for each of your employees. Divide employee sales by the wages of that employee. The higher the percentage, the more the employee sells per
dollar paid. Be wary of percentages below 100%. That means the employee’s labor costs are higher than the sales they generate for your business.
Go deeper in your workforce KPIs, and understand profit per employee. Calculate your profit (sales minus cost) divided by labor. The higher the percentage the more profit the employee is bringing in per dollar paid to them. Percentages below 100% mean that the employee’s labor costs are higher than the profit they bring to the business.
With an employee management system, you have access to a comprehensive view of day-to-day operations for the following areas:
These insights can help you better identify the KPI metrics needed to assess which employees are performing the best and which employees need improvement. While costs are always top of mind, an employee management tool can give you a holistic view and provide you with a digital budget, so multiple departments have access to the same data.
Revel’s employee management system allows you to manage all aspects of your labor operations through a single console, from on-boarding employees to tracking productivity and payroll.
You are able to easily add individuals on the backend and set key details to get your employees ready to work quickly and efficiently.
Also, you can assign roles and permissions for your employees based on function or seniority. Based on certain roles and permissions, you can build out what goals and objectives you have for your employees and utilize KPI metrics to see if you are on track for operational success.
Whether you leverage Revel’s open API to incorporate custom integrations of your own, or prefer to browse our vetted, best-in-class partners for integrations ready to plug in and go, our platform is designed for the flexibility you need to run the business you desire.
The best part is, Revel’s employee management system is a part of our core platform, meaning it does not cost anything extra to enable within your POS system. At Revel, we recognize employee management are important aspects of your day-to-day operations, which is why these features come standard with our SaaS subscription.
To learn more about Revel’s cloud POS and the solutions that come standard with subscription, schedule a call with a product expert today!