Setting KPI's - what % is acceptable to be non-productive

[tubefeed]

I am setting kpi's for a worker that is not productive enough.
A lot of time is wasted chatting, coffee, turning up 5 min late, leaving for lunch early, etc.... all little things eroding time effectiveness.
In setting very specific kpi's I want her to target a certain percentage of her time to be productive.
Is 90% a fair call?
So if you work 9.30 to 4.30 with a 1/2 hour lunch, 6.5 hours becomes approx 5 3/4hrs effectively working.
Has anyone else set targets along these lines?
I am I in effect facilitating the downtime and endorsing it by doing this????

[desbrooker]

I am setting kpi's for a worker that is not productive enough.
A lot of time is wasted chatting, coffee, turning up 5 min late, leaving for lunch early, etc.... all little things eroding time effectiveness.
In setting very specific kpi's I want her to target a certain percentage of her time to be productive.
Is 90% a fair call?
So if you work 9.30 to 4.30 with a 1/2 hour lunch, 6.5 hours becomes approx 5 3/4hrs effectively working.
Has anyone else set targets along these lines?
I am I in effect facilitating the downtime and endorsing it by doing this????

Hi, wouldn't it be easier to address the timekeeping issues in the first instance? It would seem to me that timekeeping may not be addressed by setting KPI targets, because these issues could still be present and the targets could still be met.

[NicoleAnita]

I agree with desbrooker. KPI's or KPA's are meant to be set that are realistic and achievable. Yes turning up to work on time and sticking to an allocated coffee break (must admit it has been a long time since I actually thought anybody left their desk intentionally for a break)! To ensure KPI's work they must be set in conjunction with teams and they must be achievable for the whole team. For example, if your worker is in a call centre for instance, then the KPI's will not only apply to that group of employees but they must also apply (different perhaps) to the sales staff, warehouse etc. It is no good setting KPI's for an individual who has no control over what other departments may face on a daily basis. It could be seen as targeting one individual.

Address the lateness etc. Being consistently late for work and back late from coffee/chatting etc can be seen as not only being unproductive but also letting the rest of the team down by putting extra pressure on them. If you are in HR speak to the employee's immediate manager and both of you sit down and address the issues at hand and explain to the employee what your expectations are and you expect an immediate improvement (after all turning up to work on time is expected) and then perhaps you can start a performance management plan. You must also give the employee a chance to explain the issue of being late. There could be extenuating circumstances why this person is late everyday. Seems to me to be a performance issue rather than a productive one requiring KPI setting.

[tubefeed]

Yes I think you are right. I think if I set a kpi for 90% productivity or whatever she will 'play' the system.
I have written up her perf review and highlighted lack of productivity, being non punctual etc plus more. We will review again at end of Jan which is an extension of the prob period. At this point we will need to decide whether to keep or let go.
Always tough decision to make in a small business, but there is no room for passengers.

[Moz]

there is no room for passengers.

So true for a small business!

The other issue with setting such a KPI, is how you define 'productivity' - is it being at your desk?

... all little things eroding time effectiveness.

Time spent "at work", even when actually "working", is not necessarily "time effectiveness".

Time effectiveness depends on what an employee actually does with the time they do spend working. How much they get done in that time, and whether what they do is correct/effective and doesn't need to be done again (not doing things right first time can often be a considerable unseen cost and can impact on other things like customer satisfaction)

Of course all this depends on what the person actually does.

I've seen people who do things very quickly, but 50% of what they do has to be done again. I've also seen people who work at a more sedentary pace, but never ever make a mistake. Then there are the superstars, who do everything very quickly, and don't make any mistakes!

It is of course very hard to make allowances for this in a traditional workplace.

Perhaps we need another thread about Productivity

[JMcJ]

Very valid comments by both desbrooker and NicoleAnita. Also have to strongly agree that leaving issues such as "being non punctual etc." to a performance review session needs a more "productive" and pro-active approach in itself. If it is a daily issue, deal with it on a daily basis, set clear and agreed expectations, monitor and provide feedback. Was always taught not to "bank" such issues until a performance review!

[tubefeed]

Having stumbled into the role of HR manager as part of being a GM, I am learning as I go.
JMcJ your comment about banking issues is a good one. I think we definitely do this, and then when it is time for a review and we let all the issues hang out it is kinda like shutting the gate after the horse is bolted. Once they have fallen into a pattern and are comfortable I think it is hard to change them and had we said something sooner it might have been easier to rectify.
Moz - Ur comments re productivity are so true. However I still believe if someone is sitting at their desk they have more chance of getting something done than if they are not lol.
Thx for all other comments, all good stuff.
I have to say that HR has become a Much bigger part of my role than I ever thought it would, and has presented with the most difficult situations and decisions over all other components of the business. I am considering getting more formal quals in the area....

[Annieoc]

All comments here are very valid.
Using a call centre example (everything is easy to measure, so it is not always feasible for other types of business units) I worked on an 87% production time, based on a monthly average. This factored in a monthly 1:1, 1 hr per month mandatory training, 5 mins per hour break time and 30 mins per week team meeting. The goal was to encourage the staff to self manage. Punctuality was measured separately. As mentioned earlier though, in that environment, everything gets measured so it is harder to manipulate the system.
The end of the day, if you are managing it, you are half way there to fixing the problem!