How to Improve Employee Efficiency with KRA and KPI

An efficient team can achieve more perfectly their goals. So here we are going to explain the efficiency with KRA and KPI.

Efficiency is the capacity to do stuff properly, strongly, and without waste. The role of efficiency in achieving goals and objectives is important.

WHAT’S IN IT

Employee efficiency

For completing any of the tasks, an employee must do their work effectively and efficiently.

The main difference between effective and efficient is effective is about doing the right things or producing the result that is wanted, but efficiency is producing the desired results on time with optimum utilization of resources like without wasting time and money, etc.

Employee efficiency plays an important role in any organization if an organization wants to achieve their objectives then its employees must be effective. Employee efficiency can be of two types static or dynamic.

Static efficiency refers to making improvements in the existing process and dynamic efficiency means continuous development of new processes and creating new opportunities.

Factors that can boost employee efficiency are

Good environment

A good and fresh environment brings positivity to workers’ minds.

Team Work

Working in a team increases the morale of the workers and this will help in achieving goals easier.

Promotion scheme

If a worker performs their task correctly, then the company must reward them. So they can feel good about making progress. It also helps them in setting new goals.

Establish a team trend

If an employee is not performing it will ultimately affect team goals as well as organizational goals, but sometimes it will not indicate that poor performance indicates poor employees sometimes employees are not able to achieve their target so this problem should be solved by the manager.

Work according to skills

Work should be allocated according to a skill like a person good in accounting must be placed in the financial department, if it is placed in any other department, his skill will not be useful for the company and him also.

Job security

If an organization is providing job security to an employee then he or she can do work peacefully without any burden but if job security is not there then workers should always worry that they can be expelled from the job at any time.

Company member

The company should treat its workers as a family and this will increase the worker’s faith in the company. The company should provide time to time bonus to their employee so their attachment towards the company will never go down.

Communicate effectively

 Manager should communicate properly with their employees. He should explain the task properly to the employee so that he can achieve them easily.

If an employee has some idea then he can discuss it with the superior and if the superior likes his idea so they can implement it on the project. 

Motivation

The manager or top-level executive, keep motivate their subordinates and this will increase their efficiency. 

Give each other feedback

Fill feedback form from every employee and In feedback, you can ask about their interest in their skills so later, an organization can fix its position or allot their work in the company easily.

Key Result Areas

Key Result Area or KRA are general parameters that an organization fixed for a specific purpose. KRA define the job profile of the employee and gives better clarity of their role. KRA is based on a job description of a person.

Employees are solely responsible for KRA assigned to them and a good KRA must include ongoing responsibilities of the position and the purpose and benefits of performing these responsibilities.

KRA can be used to measure performance with other modules like goals, skills, objectives, etc. Different employees have different KRAs.

KRA is the process on which an employee has to concentrate during a year, for example, a person working in a manufacturing firm has a different KRA than a person working in an IT firm.

A person working in a manufacturing firm would focus on budge while a person working in an IT firm would focus on introducing new technology.

KRA may be an internal or external factor for an organization. Key result areas sometimes referred to as critical success factors also. 

How to write Key Result Areas?

While writing KRA, you have to remember some key points:

• KRA is based on job description go through the job description of the employee and then discusses it with the manager after discussion. The job description provides the expectations that are required of them in a role.
• Find out how an employee would contribute to an organization process and what an employee is supposed to achieve.
• Set goals for employees according to responsibilities and also write a description of every goal.
• While describing all these goals, every factor must be described fully.
• Ask employees what makes their position essential to the success of the company.

Key Performance Indicator

A KPI or Key Performance Indicator is a measurement value that measures the performance of the company and also gives details about how effectively the company is achieving business objectives. KPI is used to evaluate the success of the Organizations.

High-level KPI may focus on the overall performance of the organization while low KPI focus on department performance like the sales department, HR department, marketing, etc.

In term of developing a strategy for KPI your team start with the basic and understand what’s your organizational objectives are, and how you can achieve your goals.

Some KPI example according to department managerial KPI gives an overview to top-level executives, financial KPI record the performance of a business in its transaction, expenses, sales, and profit, sales KPI provides you with the sales transactions and process.

How to write a Key Performance Indicator?

• The first and most important thing is to mention your objective clearly for your KPI.
• Second, define your success.
• Third share or discuss your KPI with your superior.
• Update your KPI objectives as needed.
• The next step is to decide your measurement.
• And the last step is to write your SMART (Specific, Measurable, Attainable, Relevant, Time-bound) KPI.

Make sure that your KPI is an actionable form, for this, you have to remember the following points.

1. Review business objectives.

2. Analyze your current performance.

3. Set short and long term KPI targets.

4. Review targets with your team.

5. Review progress and readjust.

Difference between KRA and KPI

Basis	KRA	KPI
Meaning	Key result area or KRA are general parameters which organization fixed for a specific purpose. KRA define the job profile of the employee and gives better clarity of their role.	A Key Performance Indicator is a measurement value that measures the performance of the company and also gives details about how effectively the company is achieving business objectives.
What is it?	It is a strategic factor.	It is metric.
Nature	It is qualitative in nature.	It is quantitative in nature.
Use	Outline the scope of the job or product.	Evaluate the success of the goals at various levels.

Conclusion

KRA and KPI both play an equal role in any organization. KRA helps in achieve specific goals while KPI helps in achieve the overall goals of the organization.

The relation between KRA and KPI is if an organization makes new goals, so an organization needs to follow KRA and KPI strictly so that they can achieve desire targets.

Also read our blog on How to Develop an Effective Marketing Plan in Just 7 Steps

FAQ’s