KPI: balance of interests, how to combine the goals of the employee and the company?

Tips from Natalia Zabytivska, HR and Career Consultant, Talent Success Lead at SoftServe

For a manager, the main goals he or she follows in his or her work are the company's goals. However, behind the business goal, one should not forget about another driver of achieving strategic objectives. Yes, these are individual goals of each employee.
However, without clear mechanisms for combining them, this can become a source of conflict or low productivity.
So how do we find the right balance and combine individual and company-wide KPIs? We need to take 7 steps.

Step 1

It is worth starting with the main component of working with people - communication.
Defined strategic focuses and KPIs, their clear communication at the company level with an explanation of "why you chose this and such KPIs" will help ensure transparency and, at the same time, employee engagement. It will also provide insight into how to align personal goals with company goals.

Step 2

Involve employees in discussing, setting, and reviewing KPIs at the departmental and team levels.
Involvement at the stage of KPI formation and definition helps to create a sense of ownership, builds a culture of responsibility, and creates an understanding of not only "what" and "how much" to do, but also "why."

Step 3

Ask your employees how their individual contributions can help you achieve your team goals and what they would like to develop and how they can apply it to their work. Then match individual goals with team goals.

"Can I have an example?"

If the KPI for the sales department is the percentage of repeat contracts, and the individual KPI is the number of new customers, then there is no common focus. And where there is focus, there is effort, there is the result, right?
What does the balance look like? It is important for us to have performance goals (KPI itself), as well as development goals (training and practice of new skills and experience of the employee).

Step 4

The remuneration and compensation system should take into account both individual and team contributions. If employees understand how they contribute to the achievement of the company's strategic goals through KPIs and what rewards they will receive for this, and what the weight of individual and team performance is in the system, then everything will work well.
For example, achieving personal goals can affect salary reviews as well as the team's quarterly bonus.    

Step 5

Track the progress and relevance of KPIs throughout the journey to achieving business goals.
Hold regular one-on-one meetings to understand whether employees have lost their individual motivation and their goals are still relevant. 

Step 6

An important reminder: goals should be ambitious but achievable.
Too high KPIs can be demotivating, just as too easy ones can be. Take into account the opinion of your colleagues at the validation stage, and use historical data to make data-driven decisions. 

Step 7

If, when you synchronize your personal goals with the company's goals, you realize that they are completely incompatible, then "Congratulations!" It's time to look for another role in the company or make a replacement in the team.
Why congratulations? Because it's worth remembering that such situations are quite normal, and it's even good that you found out in advance.

These steps won't be easy or quick for you, but rest assured that once you take them, you will definitely succeed. This way, you and your colleagues will truly be moving in the same direction, with a positive attitude.