Business Analysis Toolkit

There is always a need for motivation before one engages in a certain action or behavior. In a company, it is vital that one should know what motivates employees to excel in their jobs. To do this, a set of key performance indicators (KPIs) have been formulated to systematically evaluate certain motivational factors. These factors are very useful for companies in identifying solutions for employee-related problems, improving working conditions, and keeping up with their employees’ expectations. Motivation KPI are divided into four categories: Growth and Development, Monetary Compensation, Non-Monetary Compensation, and Intrinsic Factors.

One of the most important factors under Growth and Development is training. A company should always come up with training programs at least once a year to teach new skills and improve the existing ones. Job Stability measures the average time period an employee spends in the company. The third factor under Growth and Development is Promotion. The certainty of being promoted to a higher position motivates employees to perform their jobs to the best of their abilities. The last factor under Growth and Development is Growth Path. It is always important for employees with serious career ambitions to know that they will grow while working in the company. All of these factors pertain to company initiatives to provide learning and growth to the employees.

Monetary Compensation is comprised of benefits in form of money that the company provides its employees. This, of course, is the prime motivation for getting a job. One of these benefits is the ESOP or the Employee Stock Option Plans. Many companies give their employees option to buy shares after a certain length of tenure in the company. Another benefit is the Salary. Insurance Benefits are very important as well, and so are Bonuses and Incentives. A bonus is usually a percentage of the salary provided by the company.

There are also KPIs that are non-monetary in nature, and they refer to the factors that are not in form of cash, but can still encourage employees to be motivated to do their jobs well. Hygiene Factors are not necessarily very effective key performance indicators, but the absence of Hygiene Factors or a clean working environment can drastically affect employee’s motivation. Family Welfare Programs that are offered by companies are, of course, very important to employees. Recreational Engagements could provide fun and relaxation to employees, therefore a good motivation for them to stay in the company. And, of course, Supervision. A well-supervised company is always a joy to work in.

The last category here is composed of the Intrinsic Factors. These are factors that can be used to judge the motivation of company employees. The number of projects assigned to an employee, recognitions received, how well the employee handles competition, and how he handles his subordinates are good ways to measure the motivation of the employee.

Identifying motivation KPI is beneficial for a company since it would reduce the number of personnel who would quit their jobs and seek greener pastures in another company. And in doing so, provides the company with good, solid image.
—

If you are interested in motivation kpi, check this web-site to learn more about motivation scorecard.