To calculate KPI indicators, you should select 1-5 performance parameters that will act as measures when assessing employee performance.
Let's say, for an internet marketer you can take the following:
The number of people who visited the site after interacting with an employee.
The volume of purchases of customers who have already had experience interacting with the organization;
The number of positive reviews from users on social media or on the company's website after purchasing the product.
Then you should decide on the uruguay phone data weight of each indicator. When adding up the weight of all indicators, you should get the number 1, and the most important indicator should have the highest value.
Thus, the following scheme can be constructed:
new users - 0.5;
repeat customers - 0.25;
positive reviews - 0.25.
Next, you need to analyze the information on all the indicators taken for the current period and create a strategy:
KPI Initial value (monthly average) Planned value
Increase in new users 160 20% growth (192 new users)
Number of users who came for a repeat order 30 20% increase (36 repeat orders)
Number of users who left a positive review 35 20% increase (42 reviews)
Now you need to calculate KPI indicators in Excel.
The following formula is used for this:
KPI Index = KPI Weight * Fact/Target
Key indicators (KPI weight) Target Fact KPI Index
KPI 1 (0.5) 20% 22% 0,550
KPI 2 (0.25) 20% 17% 0.212
KPI 3 (0.25) 20% 30% 0.375
Performance Ratio 1,137
113.70%
In this case, the goal refers to the level that must be achieved by the employee in accordance with the plan, and the fact refers to the results of his activities over the period.
As can be seen from the table, the final indicator is 113.70%, which is, of course, a high result, but upon a more detailed analysis of the data, it becomes clear that the marketer did not achieve the planned values.
To calculate the salary, let's imagine that the monthly salary of this specialist is $900, which includes a salary of $600 and a bonus of $300.
If an employee reaches 100% of the KPI index, he is paid the full bonus and salary, but due to exceeding the set standards, he is rewarded with a bonus of 13.7% of the bonus part - $ 41.1. Ultimately, the employee's salary will reach $ 941.1 ($ 600 + $ 300 + $ 41.1).
Moreover, if a specialist fails to achieve the standard and his KPI index is below 99%, then the size of the bonus portion will be reduced depending on the degree of non-fulfillment.
These calculations and tables allow you to identify the problems and weaknesses that an Internet marketer has.
Taking into account the organization's goals, other indicators can be included in these calculations, such as fine systems, the number of completed and uncompleted tasks, etc. For example, if the plan was completed by less than 80%, the employee loses the bonus altogether.
There is another method of determining wages in relation to the degree of fulfillment of standards:
KPI Index Premium coefficient
Below 70% 0
70-80% 0.6
80-89% 0.7
90-95% 0.8
96-98% 0.9
99-101% 1
102-105% 1.3
106-109% 1.4