As a manager, there are several different KPIs that are important to keep an eye on. The employees who work under you must create value for the business. At the same time, you must also be sure that they are happy and satisfied with the workplace where they work.
That is precisely why there are many different KPIs that make sense to keep an eye on as a manager. Since it is simply not possible to keep an eye on them all, we have described the three KPIs that make the most sense for a manager to keep an eye on.
1. Human Capital Value Added (HVCA)
Your employees come to work to create value for the company. If they don’t, they aren’t worth much. Although many companies are created with a noble vision, at the end of the day, running a business is about making money. Therefore, it also requires that your employees perform.
Therefore, it is of course also necessary that you as a manager keep an eye on whether this is the case. The best way to do this is by keeping an eye on Human Capital Value Added (HVCA). To calculate the HVCA, you can use this formula: revenue – (total costs – employment costs) ÷ number of full-time employees = HVCA.
2. Employee Satisfaction
Another KPI for managers that is important to keep an eye on is the satisfaction of your employees. Employees are the backbone of any business. Without them, it will not be possible to drive the business forward. Therefore, it is of course crucial that they are both happy and satisfied.
In your role as a manager, it is important that you keep an eye on the general satisfaction of the employees. It is also your job to take action if it turns out that satisfaction is too low. Therefore, it is a KPI that you must keep an eye on at all times, so that you can react quickly if the need arises.
It is also recommended that you as a manager keep an eye on the level of absenteeism. If you find that there is a high level of absenteeism, something is wrong. Therefore, you need to find out how you can solve this. The first step, however, is to create a dashboard where you can keep an eye on the level of absence, so you can track whether it is high or low.
If it turns out that the level of absence is too high, you should call the employees in for a meeting. Here it is important that it does not become a disciplinary conversation, but that you instead focus on finding out what the reason for the high absence is.