Many leaders track financial KPIs like revenue and EBITDA, which are crucial to the success of an organization. However, there are several types of KPIs that are commonly overlooked — but no less critical to strategy and performance. While not every individual metric may directly contribute to profits, these metrics help leaders better understand their employees and operations, enabling them to make more informed decisions that will ultimately drive growth.
“Revenue and EBITDA metrics are outcomes. They’re not leading indicators. It may be difficult to impact that number on a bi-weekly review basis,” says Heather Zorge, Chief Financial Officer at Hippo Veterinary Group. “Understand your business strategy and track the leading indicators that will drive those outcomes.”
Employee Engagement and Satisfaction KPIs
According to PE-CXO’s recent survey, half of respondents referenced employee engagement and satisfaction as a key metric they aim to track that is difficult to attribute directly to profits. Given that many businesses still struggle with costly turnover amid continued resignations, this metric is clearly integral to success.
Current employees may become disengaged, negatively impacting the bottom line and overall reputation.
Retention metrics can measure turnover, but evaluating what leads to turnover and disengagement is more challenging. Best practices for monitoring employee engagement should involve: