KPI Weightage Example

We combine all your performance measures into one performance agreement to keep the system simple and easy for managers and users to understand. Different Performance measures have different weightage due to the importance which may differ from organization to organizations.

We recommend our customers to use a single form with the same rating key so that when you want to sort your Performance Measures base on certain competencies in regardless of KPI / Objective / Behavioural Competencies or other measures, you can see clearly compare them throughout the organization.

If you are using a Rating Key of 1 to 5 for BC, Measurement of 0 – 100% for KPI and probably other scales like 1-6 / 1-7 and so on, when you try to compare the entire organization view Performance measures you will not be able to gauge a consistent rating of 1 to 5 which is the market best practices.

Example:

When I get BC average rating of 3.5 is over scale of 5. (3.5/5)

When I get KPI average rating of 6.8 is over a scale of 10 (6.8/10)

When you compare whether an employee is performing well in their respective BC over KPI, it looks as if their KPI 6.8 point is better since is more than 3.5 point, but is not accurate to say so. You cannot also use the total score as a benchmark for an overall employee.

Top Reason why standardized scale is a market practise :

1. (Over Rating) Different managers rate differently for their direct report. Thus it may not be fair for managers that have high expectation and rating their employee a low rating while other rating their employee highly. It does not reflect the organization wide true performance.
2. (Weak Rating) Different scale metrics tends to lower down accuracy because it gives the in between average ratings gut feeling. Some may rate 3 and some may rate 4 base on a 7 scale rating. 3 and 4 is too close to make a fair category whether you are performing or not performing.
3. (Uniform Measurement) When you try to compare Performance measures, you can generate a report from our system which can accurately chart out from top or bottom order throughout your entire organizations on performer and non performer which need extra training or coaching using the same rating scale.