what are qualitative things to measure for an employee bonus

When you lot fix goals, there'south commonly ii types: quantitative and qualitative. By setting both types of goals for your organization, y'all tin can achieve a balance of results driven by people focusing on the behaviors that affair.

Quantitative Goals and Commuter Metrics

When you set quantitative goals, they're going to focus on things like financial results, operational metrics, customer dynamics, or quality. You can typically track these types of goals pretty easily. That doesn't hateful you don't have to be thoughtful nearly these metrics. A focused set of critical driver metrics is more valuable than a broad prepare of less relevant metrics that your team can't touch on. Allow me share an case.

Let's imagine you lot take a sales squad. The overall goal for the partitioning is to grow acquirement. The commuter metrics that affect revenue are cost and volume. We're talking nigh the sales team here. They have no command over product price. If you lot just requite this team a revenue goal for their business unit, it won't focus their efforts accordingly. It could atomic number 82 them to debate or complain about pricing policy. That's just not productive. The business unit also doesn't control client service. Using full revenue for this team's goal isn't fair because they don't control all of it.

When you set the sales team's goal, focus their goals on what they can control. In this instance, it's new sales volume. Call up virtually that sales team going out and trying to go more customers. The driver metrics, for their power to acquire customers are things like the number of prospects they talk to, the number of sales calls they behave, and the conversion rate from a prospect to a paying customer. Past focusing on these driver metrics for this sales team and focusing it on what they can control, you're going to get meliorate results.

When you think through your metrics for your business unit, think through the drivers. Consider the team's ability to control those drivers. And make sure the goals you lot classify to them are only focused on that which they can command. If you build your goals this manner, y'all're going to go a more concrete fix of goals that your team feels empowered to really drive.

Qualitative Goals

In improver to setting quantitative goals, which are pretty like shooting fish in a barrel to set, a lot of times you lot'll have to set qualitative goals. You can look at things like major projection completion or milestones in completing that project. Milestone goals are relatively piece of cake to mensurate and focus your team on driving a specific consequence. Just be sure you have counterbalancing goals like quality to foreclose the team from cutting corners to hit a time-based milestone goal.

Sometimes, you desire to measure things that are difficult to measure. You'll have to infer from indirect quantitative metrics whether or not you lot're making progress on that desired outcome. Things like culture are hard to measure, but that doesn't mean yous don't have to mensurate it. You can construct a set of indicators that allow yous know if yous're moving culture in the correct direction. You can look at things that'll tell you if you're succeeding in reaching that college-level end goal.

Let me offering a couple of examples:

The Civilization Conundrum

If we're looking at culture, maybe we create a balanced scorecard to measure our performance on cultural comeback. We desire to be a top place to work. We want engaged associates. Those outcomes are hard to measure out. But, we can look at quantitative metrics to tell united states of america how we're doing. Here are a few metrics we can use to assess how well we're building a great culture:

– Nosotros can look at associate retention to see how many people stay in the organization.

– There are measures out there like a Gallup Q12 poll that can tell you which direction your culture is moving.

– You tin expect at things like absenteeism. I tin can measure out if somebody'southward non at work, and that can serve as an indicator of whether or not I have a skilful culture. If absence is running loftier, there's conspicuously a problem at the function.

– I tin expect at referral hires. Are people telling their friends "hey, you should come work here, it's a great identify to work!"?

– Some organizations accept kudos programs where assembly reward ane another for doing something not bad. How many people are using that program?

When I expect at all of these quantitative metrics together, information technology gives me an indicator on whether my civilisation is strong or weak and if information technology'due south going in the correct management.

Assessing the Large Project

You may accept situations where you're doing a big project. Qualitative goals tin can help you appraise performance here. Setting qualitative metrics is the same as setting quantitative ones. Empathize the desired loftier-level upshot you're trying to achieve. Think of drivers that point toward that outcome and measure them.

Let's look at implementing a big engineering science system. We may accept an approach where we fix goals based on milestones. Nosotros may set up goals effectually apply instance completion, user credence testing, and training completion. When y'all have these goals in place, y'all can assess whether or not y'all're hitting your milestones to get the project done.

Tying Quantitative and Qualitative Measures Together

Qualitative goals can really help you understand how your organization is doing. Pay as much attention to them equally yous do to your quantitative goals. Integrating quantitative and qualitative goals can provide a complete pic of your organization's overall performance.

Desire to learn more about goal setting? How near taking an entire course on information technology? Check out the video below to learn more most how to get started. You can besides go directly to the course and start learning correct now. The entire course is available at lynda.com. Enjoy!

– Mike Figliuolo at thought LEADERS, LLC

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Source: https://www.thoughtleadersllc.com/2018/01/importance-setting-quantitative-qualitative-goals/

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