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If this story doesn't convince you to set KPIs for your employees, nothing will

by , 03 June 2014
Key Performance Indicators (KPIs) are crucial if you run a business.

You can't just employ someone and not monitor whether or not he's delivering on the duties set out on his job description. If you make this mistake, your company will lose millions of rand.

The German government learnt this the hard way not so long ago. Take a look at the story below so you can avoid a similar situation.


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Think KPIs are unnecessary? Think again…

The embarrassment recently suffered by the German government will convince you of the benefits of KPIs if you have any doubts.

According to Dynamic Business.com, upon retirement, one of its civil servants sent a farewell message to 500 colleagues, telling them he'd earned almost $1 million over the past 14 years without working.

'Since 1998, I was present but not really there. So I'm going to be well prepared for retirement – Adieu,' wrote the employee in an email leaked to the press.

He accused the municipal authorities of creating inefficient, overlapping and parallel structures, even employing another surveying engineer to do the same job, leaving him with nothing to do.

If the German government had KPIs for him and monitored his performance, none of this would have happened. They would have found out sooner that he wasn't performing.

Another important point is that KPIs are a great motivator.

If the German employee had KPIs, he would have had something to strive for and goals to achieve.

Here's the bottom line when it comes to KPIs.


The First Performance Review Software Available in South Africa

In accordance with the 2014 Labour Law

The Performance Review Software helps you determine quickly and accurately:

- your employees' skill levels;
- how every employee contributes to overall business performance;
- the training and skill enhancing requirements for every one of your employees;
- how to properly motivate your employees;
- the required disciplinary measures.

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KPIs are the key to managing employee performance

The bottom line: You need to manage your employee's performance by setting out clear KPIs, say the experts at the Labour & HR Club. This way, you'll avoid losing money or suffering the same embarrassment as the German government.

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