Home » Blog » Do you want the final three KPIs? Of course you do

Here are the final three KPIs that you may wish to introduce in your business.  Remember not of these KPIs will work within your business and you can always change them if they do not work.

Revenue per Employee

This is one of the stats that almost all of the investors have said is important when they look at which companies to invest in. Whilst not a precise science, the revenue per employee (total revenue / total employees) is a good indicator of how efficient your overall organisation is. Payroll is usually the biggest cost on the P&L. Organisations with a low revenue per employee rate don’t tend to survive long. The key is to benchmark within your industry, as there is no ‘right’ answer for what this should look like overall.

3-Month Failure Rate

Most organisations have probation periods in their contracts with employees. But this doesn’t protect you from the damage that a bad hire can cause. The amount of wasted money, time and energy that goes into bad hires (who don’t make it through their probation) is a huge driver of overall efficiency. Measure how many employees failed before the 3-month mark, and try to manage this to be as low as possible.

Average Time to Hire

Unfilled vacancies can be a killer to your overall productivity. The longer it takes to fill a role, the more cost you’re likely to incur (both directly through recruitment and indirectly through opportunity cost of not having someone in the role). This could also be a sign that your culture or even reputation isn’t where you need it to be. Don’t try to manage this KPI directly, but rather monitor it and try to understand the underlying drivers.

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