Managing employee performance through KPI system can give some positive benefits for the company. Here are some of the benefits of key performance indicators implementation:
- Through the method of key performance indicators, the performance of each employee can be evaluated in a more objective and measurable. So as to reduce the element of subjectivity that often occurs in the employee performance appraisal process.
- Through the determination of key performance indicators (KPI) is appropriate, each employee also become more aware of the work was expected of him. This will encourage employees to work more optimally to achieve predetermined performance targets.
- Through the establishment of key performance indicators and measurable objective, then the process of coaching employee performance can be made more transparent and systematic.
- The score of key performance indicators and measurable objective can also be used as a basis for granting employee reward and punishment. Thus, better-performing employees will get a reward. Otherwise the working poor will get the punishment.